Minnesota Administrative Rules
Agency 120 - Commerce Department
Chapter 2860 - FRANCHISES
SALES PRACTICES
Part 2860.4300 - PROHIBITED PRACTICES
Universal Citation: MN Rules 2860.4300
Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1. Pyramid or chain.
No person may promote, offer, or grant participation in a chain distributor scheme, multilevel distribution scheme, or pyramid sales scheme as defined by Minnesota law.
Subp. 2. Prohibited statements.
No person may make or cause to be made any statement or representation that:
A. other
individuals are willing to enter into a franchise agreement substantially
similar to that being offered, granted, or sold without, at the same time,
disclosing in writing the source of such information and the names, addresses,
and telephone numbers of such individuals;
B. the state of Minnesota or its agents or
employees have approved or endorsed the franchise or the franchisor, found the
contents of any advertising is true and not misleading, or determined that the
promotion, advertisement, offer, grant, or sale of the franchise complies with
the applicable laws unless such is accomplished by a showing of an official
record, to wit: an order of registration; or
C. execution of any document in connection
with the offer, grant, or sale of a franchise constitutes only an application
for such franchise when, in fact, execution of the subject document or
documents creates a binding obligation.
Statutory Authority: MS s 80C.18
Disclaimer: These regulations may not be the most recent version. Minnesota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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