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The buyer can live in a different state
In a fictional sale, a Singapore parent speaks with a New York resident about a Florida operation. A U.S. subsidiary will sell the rights and a broker introduces the parties. Florida outlet does not describe the whole transaction.
Identify the actual seller, the buyer’s residence, the operating location and where relevant communications originate or are received. The applicable state provisions determine which connections matter; this example makes no New York or Florida filing finding.
The sales activity happens before opening
Website advertising, broker introductions, meetings, territory discussions, disclosure, deposits and signing can raise different questions. Their content and any money or binding promise matter, not just a future opening date. This is not a universal prohibition on introductory calls.
Coverage, registration, notice, exemption, disclosure, advertising and ongoing relationship rules are separate questions. An unresearched answer is not no requirement, and an operating permit is not sales authority.
A federal process does not replace the state rules
The federal rule preserves state and local franchise-practices laws except to the extent of inconsistency. Equal or greater protection is not inconsistent. Completing federal disclosure therefore does not itself establish the state result.
Scope
- This is a short explanation of relevant facts, not a determination of any state’s reach or exemption.
Next step
Check the sale’s actual parties, places and early communications before planning only around the outlet’s state.
Sources & review notes
Federal Trade Commission
Passage, dates and research notes
primary · section-436.10
equal or greater protection
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Federal Trade Commission
Passage, dates and research notes
primary · section-436.1
whatever it may be called
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Federal Trade Commission
Passage, dates and research notes
primary · section-436.2
at least 14 calendar-days
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Detailed rule records (1)
The FTC rule preserves state and local franchise-practices laws except to the extent of inconsistency; equal or greater protection is not inconsistent. Research each relevant state dimension independently.
16 CFR §436.10: Federal and state relationshipKeep this reading in your learning library.
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