RECOGNIZING FRANCHISISNG OPPORTUNITIES

Question 1

also provides an umbrella of protection to
franchisees by prohibiting certain listed “unfair practices.”

Answer 1

Minnesota Law

Question 3

A “franchise” is created when one person or business grants another the
right to offer, sell or distribute goods or services, using the trademark,
trade name, commercial symbol or advertising of the grantor; the
grantee pays consideration for the right to enter into or maintain the
relationship; and there is an ongoing “community of interest” between
the parties relative to the distribution of the goods or services.

Answer 3

Minnesota Franchise Act (Chapter 80C of Minnesota Statutes)

Question 4

Four Essential Elements

Answer 4

1. Grant Element
2. Trademark Element
3. Community of Interest Element
4. Franchise Fee

Question 5

one person grants another the right to offer, sell or distribute goods or services.

Answer 5

Grant Element

Question 6

satisfied by a single contract or transaction, or a single offer to enter into one.

Answer 6

“Trademark” Element

Question 7

Virtually any commercial arrangement for the distribution or resale of goods or services involves some shared economic interest between buyer and seller, even if only in increasing the volume of sales.

Answer 7

“Community of Interest” Element

Question 8

as any payment made, directly or indirectly, in consideration for the right to enter into or maintain the relationship, subject to a few narrow exclusions.

Answer 8

“Franchise Fee” Element