§482E-2  Definitions.  As used in this
chapter and unless a different meaning appears from the context:



"Area franchise" means any contract
or agreement between a franchisor or subfranchisor whereby the subfranchisor is
granted the right to sell or negotiate the sale of franchises in the name or on
behalf of the franchisor.



"Commissioner" means the commissioner
of securities of the department of commerce and consumer affairs.



"Community interest" means a
continuing financial interest between the franchisor and franchisee in the
operation of the franchise business.



"Director" means the director of
commerce and consumer affairs.



"Franchise" means an oral or written
contract or agreement, either expressed or implied, in which a person grants to
another person, a license to use a trade name, service mark, trademark,
logotype or related characteristic in which there is a community interest in
the business of offering, selling, or distributing goods or services at
wholesale or retail, leasing, or otherwise, and in which the franchisee is
required to pay, directly or indirectly, a franchise fee.



"Franchise broker or selling agent"
means a person who directly or indirectly engages in the sale of franchises.



"Franchisee" means a person to whom a
franchise is offered or granted.



"Franchise fee" means any fee or
charge that a franchisee or subfranchisor is required to pay or agrees to pay
for the right to enter into a business or to continue a business under a
franchise agreement, including, but not limited to, the payment either in lump
sum or by installments of an initial capital investment fee, any fee or charge
based upon the amount of goods or products purchased by the franchisee from the
franchisor or subfranchisor, any fee or charges based upon a percentage of
gross or net sales whether or not referred to as royalty fees, any payment for
goods or services, or any training fees or training school fees or charges;
however, the following shall not be considered payment of a franchise fee:  (1)
the purchase or agreement to purchase goods at a bona fide wholesale price; (2)
the purchase or agreement to purchase goods by consignment; if, and only if the
proceeds remitted by the franchisee from any such sale reflect only the bona
fide wholesale price of such goods; (3) a bona fide loan to the franchisee from
the franchisor; (4) the purchase or agreement to purchase goods at a bona fide
retail price subject to a bona fide commission or compensation plan that in
substance reflects only a bona fide wholesale transaction; (5) the purchase or
agreement to purchase supplies or fixtures necessary to enter into the business
or to continue the business under the franchise agreement at their fair market
value; (6) the purchase or lease or agreement to purchase or lease real
property necessary to enter into the business or to continue the business under
the franchise agreement at the fair market value.



"Franchisor" means a person who
grants a franchise to another person.



"Offer or offer to sell" includes
every attempt or offer to dispose of or solicitation of an offer to buy a
franchise or an interest in a franchise.



"Person" means a natural person,
corporation, partnership, trust, or other entity and in the case of an entity,
it includes any other entity which has a majority interest in such an entity or
effectively controls such other entity as well as the individual officers,
directors, and other persons in act of control of the activities of each such
entity.



"Sale or sell" includes every
contract of sale, contract to sell, or disposition of a franchise.



"Subfranchisor" means a person to
whom an area franchise is granted. [L 1974, c 18, pt of §1; am L 1978, c 242,
§§1 to 3; am L 1982, c 204, §8; am L 1983, c 124, §17; am L 2004, c 121, §52]