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Check each essential component

A training package might contain a staff-written manual, commissioned videos and a supplier’s platform. Ownership of the manual does not establish permission for every component.

Check who owns each important part and whether the permission covers the proposed U.S. operators, use, territory and duration. A supplier licence can have different limits from material your business created.

Sources: Federal Trade Commission: Item 14: Patents, copyrights and proprietary information

Explain material rights and restrictions

The item addresses material patent/copyright rights and applications, relevant limits or proceedings, protection obligations and the general nature of confidential proprietary information. The complete prescribed item supplies its required detail.

An intellectual-property permission does not settle independent customer-data or privacy duties. Keep that separate question with the actual information being shared.

Sources: Federal Trade Commission: Item 14: Patents, copyrights and proprietary information

Scope

  • This explains the selected federal disclosure item. State and territorial requirements and the terms of the particular offer remain separate.

Next step

Check that the rights behind the actual training and systems package cover the operator use you propose to sell.

Sources & review notes

Federal Franchise Rule

FTC overview · Compliance Guide · Guide PDF · Current regulation

The Compliance Guide is May 2008 explanatory guidance. The current regulation and later official updates control current requirements and dollar amounts; state and territorial rules are separate.

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

16 CFR §436.5(n): FDD Item 14

Federal Trade Commission

Passage, dates and research notes

primary · Item 14: Patents, copyrights and proprietary information

If the franchisor claims proprietary rights in other confidential information or trade secrets

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

Current substantive item read in full from current eCFR. This guide explains selected management implications; it is not a substitute for all prescribed disclosure text.

16 CFR §436.6: FDD preparation and records

Federal Trade Commission

Passage, dates and research notes

primary · section-436.6

Respond fully to each disclosure Item.

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.

Detailed rule records (1)
FDD Item 14: Patents, copyrights and proprietary information Source checked

Item 14 addresses material patent and copyright rights and applications, relevant limits or proceedings and protection obligations; it also describes the general nature of confidential proprietary information. Owning a manual is not the same as owning every embedded software or customer-data right.

When to check: Preparing, updating or comparing an FDD. Source review: 2026-11-12.

16 CFR §436.5(n): FDD Item 14
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