What are the rules for setting up a franchise?

In order to successfully set up a franchise in Oregon, business owners must meet certain legal requirements. First, business owners must file Articles of Incorporation with the Oregon Secretary of State. This document officially establishes the company as a legal entity in the state. The Articles of Incorporation must include the company’s name, the purpose for which it was established, and the names and addresses of its directors. Second, a franchise agreement must be drafted and filed with the Oregon Department of Consumer and Business Services (DCBS). This agreement outlines the franchise’s terms and conditions, including the franchisor’s obligations to the franchisee (the person who owns the franchise) and vice versa. The agreement must also provide information about any fees, royalties, and other compensation required by the franchisor. Third, the franchise must adhere to Oregon’s Franchise Investment Law. This law requires the franchise to register with the DCBS and provide potential franchisees with a disclosure document, which must be approved by the DCBS. The disclosure document outlines the risks and rewards of investing in the franchise, as well as the fees and other charges associated with the franchise. Finally, the franchise must comply with all applicable state and federal laws, such as those governing the use of trademarks, labor and employment, and tax. These laws are subject to frequent changes, so it is important for franchise owners to stay informed about any new regulations. Setting up a franchise in Oregon can be a complex process, but following these steps can help business owners ensure that they are meeting all of the necessary legal requirements to operate their business.

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What are the rules for setting up a franchise?

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