On this page

What the FTC alleged

The FTC’s 16 October 2024 Southern District of Florida complaint alleged that Qargo Coffee’s California offering used distributorship and affiliated-licence language while operating as a franchise. Paragraphs 26–35 address brand rights, fees, controls and support.

Those are allegations, not findings from a contested trial. The actual relationship, rather than the heading on the agreement, is the business issue.

Sources: Federal Trade Commission / U.S. District Court filing: Document 1, October 16 2024; paragraphs 26–35 and CountsIII–IV

What the reviewed settlement reports establish

The December 2024 FTC litigation report records entry of a stipulated order on 17 October 2024. The fiscal-2025 report to Congress lists Full Settlement. Those official reports support the historical settlement description even though the stale FTC index says Pending and links a proposed order.

The actual signed entered order was not reviewed, so final monetary, rescission and noncompete terms are not stated. A proposed document cannot supply the final terms, and these reports do not establish collection, current compliance or absence of other disputes.

Sources: Federal Trade Commission: Qargo entry, printed page38 / PDF page41 Federal Trade Commission via GovInfo: AppendixA, printed page 34 / PDF page 41, Qargo row Federal Trade Commission: Timeline October16 2024 Federal Trade Commission / U.S. District Court filing: Document 1, October 16 2024; paragraphs 26–35 and CountsIII–IV

The definition is still a separate analysis

The federal framework examines trademark association, significant operating control or assistance and required payment/commitment, with exemptions and independent state requirements separate. One operating rule is not an automatic verdict.

The primary definition guide below explains that analysis. The May 2008 FTC guide helps distinguish trademark protection from wider operating directions; it is not current law or a current monetary-threshold sheet.

Sources: Federal Trade Commission: section-436.1 Federal Trade Commission: pp. 2–4, 16, 113–115

Scope

  • Historical complaint/reports only; no signed final-remedy, present-conduct, money-recovery or complete current-docket conclusion.

Next step

Use the actual rights, payments and support—not the licence label—to identify the definition questions in your offer.

Sources & review notes

The source records distinguish access dates from substantive review dates. Updating an explanation does not itself recheck the law.

FTC v.Qargo Coffee — filed complaint

Federal Trade Commission / U.S. District Court filing

Passage, dates and research notes

primary · Document 1, October 16 2024; paragraphs 26–35 and CountsIII–IV

characterizing their offering within that state—and only that state—as a “distributorship.”

Accessed: 2026-11-12T21:21:26.431125+00:00 · Meaning reviewed: 2026-11-12T21:29:10.023446+00:00 · Next review target: 2026-12-12

Read actual 23-page complaint, with key allegations in paragraphs 26–35 and timing/background allegations 46–49. Allegations remain allegations; no present conduct or final remedy terms inferred.

Protecting Older Consumers 2024–2025: report to Congress

Federal Trade Commission via GovInfo

Passage, dates and research notes

official-guidance · AppendixA, printed page 34 / PDF page 41, Qargo row

Full Settlement

Accessed: 2026-11-12T21:21:26.432364+00:00 · Meaning reviewed: 2026-11-12T21:29:10.023446+00:00 · Next review target: 2026-12-12

Read official Qargo row and visually inspected PDFpage 41 / printed 34; report covers FY 2025. Corroborates historical settlement outcome, not actual entered-order terms, payment/recovery or complete current docket.

Semiannual Federal Court Litigation Status Report, December31 2024

Federal Trade Commission

Passage, dates and research notes

official-guidance · Qargo entry, printed page38 / PDF page41

Stipulated order for permanent injunction and monetary judgment entered 10/17/24.

Accessed: 2026-11-12T20:45:22.155183+00:00 · Meaning reviewed: 2026-11-12T20:57:01.744003+00:00 · Next review target: 2026-12-12

Relevant official report entry read. Establishes reported order entry; does not replace reading the actual entered order or checking later docket developments.

Qargo Coffee — case index

Federal Trade Commission

Passage, dates and research notes

official-guidance · Timeline October16 2024

Case Status Pending

Accessed: 2026-11-12T20:45:22.025529+00:00 · Meaning reviewed: 2026-11-12T20:57:01.744003+00:00 · Next review target: 2026-12-12

Index still says Pending and proposed order; later official litigation report records entry October17. Do not silently prefer old metadata.

16 CFR §436.1: Federal franchise definition

Federal Trade Commission

Passage, dates and research notes

primary · section-436.1

whatever it may be called

Accessed: 2026-11-12T20:51:48.875978+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.

FTC Franchise Rule Compliance Guide

Federal Trade Commission

Passage, dates and research notes

official-guidance · pp. 2–4, 16, 113–115

overall method of operation

Accessed: 2026-11-12T20:51:48.875978+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Published May 2008 (day not asserted). Read relevant full-PDF sections. Dated guidance contains obsolete monetary thresholds and dated accounting discussion: current CFR controls; auditor must verify current SEC-permitted treatment.

Detailed rule records (1)
Labels do not determine federal franchise coverage Source checked

A continuing commercial relationship can meet the federal definition where it involves trademark association, significant control or assistance over the method of operation, and a required payment or commitment. Apply exemptions separately.

When to check: Designing or changing partner rights, fees, support or controls. Source review: 2026-11-12.

16 CFR §436.1: Federal franchise definition
Your learning

Keep this reading in your learning library.

Open learning hub
Progress privacy

Off by default. Without remembering, changes last on this page. If enabled, only public content identifiers and self-reported progress are stored in this browser profile. Anyone using the same profile could see them. No plan inputs or contact details are included. Reset or export in learning settings.

This is a reading aid, not evidence of disclosure delivery, expertise or legal approval.