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Trace what each participant buys and may recruit

RSA 358-B addresses participants investing and receiving rights to recruit others for economic gain, with those participants also investing and receiving recruiting rights. A master-franchise label, recruitment fee alone or genuine support work alone does not establish every element.

For example, a regional partner paid when operators join, where operators may buy rights to recruit further operators, needs the actual investments, rights and compensation source traced through each level. Separating customer-service revenue from joining/recruitment payments is an optional way to expose those facts, not a safe harbour.

Sources: New Hampshire General Court: 358-B: 1–: 5

A cap does not change a prohibited structure

The law says participant limits or eligibility conditions do not themselves change the identity of the defined scheme. Offering only ten regional territories therefore does not answer the test.

Where the prohibited device is established, the chapter prohibits promotion, offering or granting participation. Review the actual structure before recruitment, without treating every master or multi-level arrangement as unlawful.

Sources: New Hampshire General Court: 358-B: 1–: 5

Scope

  • Only RSA 358-B’s specified branch is reviewed. Franchise disclosure, consumer, dealer and operating requirements remain separate and are not assumed absent.

Next step

Clarify required investments, successive recruiting rights and compensation before promoting participation.

Sources & review notes

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

New Hampshire RSA 358-B: chain distributor schemes

New Hampshire General Court

Passage, dates and research notes

primary · 358-B: 1–: 5

does not change the identity of the scheme

Accessed: 2026-11-12T21:19:50.124468+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Full chapter read. Recruitment-for-gain on required investment triggers are specific; a legitimate master franchise is not automatically unlawful.

Detailed rule records (1)
Recruitment-for-gain chains have a specific statutory prohibition Depends on the facts

RSA 358-B defines a chain-distributor scheme around a required investment and a right to recruit for profit others who make an investment and receive recruiting rights. Limiting the number of participants does not itself change the scheme’s identity; promotion, offer or grant of participation is prohibited.

When to check: Designing a partner-recruitment compensation plan. Source review: 2026-11-12.

New Hampshire RSA 358-B: chain distributor schemes
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