Sec. Advertising  

Latest version.
  • A. Standards For Advertising.

    (1) An advertisement for a franchise offering may not refer to:

    (a) The purchase or sale of a franchise as a safe investment, as free from risk of loss or default, or as a guarantee or assurance of earnings or profits;

    (b) An earnings claim, unless otherwise permitted by the Commissioner; or

    (c) An opinion of counsel without stating the name and address of the counsel.

    (2) Advertising shall state the name and address of the person sponsoring the advertisement or making the offer.

    B. Review of Advertising. A copy of each advertisement to be used by or on behalf of a franchisor in the offer or sale of any franchise subject to registration shall be submitted to the Division of Securities for review at least 5 days before the date of its anticipated initial use.

    C. Videotape and Audiotape Advertising. Advertising submitted under this regulation that is in the form of videotapes or audiotapes shall be accompanied by a written transcript and description of the contents.