ORS 650.005: Definitions for ORS 650.005 to 650.100.
Edition: 2025 EditionEffective: 2026-01-01Last verified: 2026-09-07
As used in ORS 650.005 to 650.100, unless the context requires otherwise: (1) “Area franchise” means a contract or agreement between a franchisor and a subfranchisor whereby the subfranchisor is granted the right, for a valuable consideration, to sell or negotiate the sale of franchises in the name or on behalf of the franchisor. (2) “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise. (3) “Director” means Director of the Department of Consumer and Business Services. (4) “Franchise” means a contract or agreement, whether oral or written, by which: (a) A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor; (b) The operation of the franchisee’s business pursuant to such plan or system is substantially associated with the franchisor’s trademark, service mark, trade name, logotype, advertising or other commercial symbol designating the franchisor of such plan or system; and (c) The franchisee is required to give to the franchisor a valuable consideration for the right to transact business pursuant to the plan or system. Payment for trading stamps in itself is not consideration for the right to transact business pursuant to a plan or system. (5) “Franchisee” means a person to whom a franchise is sold by a franchisor. (6) “Franchisor” means a person, including a subfranchisor, who sells a franchise for $100 or more to a franchisee or subfranchisor. (7) “Offer” or “offer to sell” includes every attempt to offer to dispose of, or solicitation of an offer to buy, a franchise or interest in a franchise for value. (8) “Sale” or “sell” includes every contract or agreement of sale of, contract to sell, or disposition of a franchise or interest in a franchise for value, but does not include the renewal or extension of an existing franchise without any material change in the terms thereof if there is no interruption in the operation of the franchised business by the franchisee. (9) “Subfranchisor” means a person to whom an area franchise is sold by a franchisor. [1973 c.509 §1; 1987 c.414 §77; 1993 c.744 §16]
Administrative rules citing this section
- OAR 441-325-0010: Definitions — implements
- OAR 441-325-0030: Exemptions to Disclosure Requirements — implements
- OAR 441-325-0040: Offer or Sale of Franchise — implements
- OAR 603-082-0010: Purpose — implements
- OAR 603-082-0020: Definitions — implements
This rule cites
- ORS 650.005 — resolved
- 650.100 — resolved
Cited by
- ORS 15.380: Presumptive rules for specific types of contracts.
- ORS 646.551: Definitions for ORS 646.551 to 646.557.
- ORS 650.020: Liability of franchise seller; defenses; amount of recovery; attorney fees; joint and several liability; limitation on action; indemnification of corporation; right of contribution.
- ORS 650.050: Rules.
- ORS 650.055: General duties and powers of director.
- ORS 650.060: Investigative powers of director; protection against unreasonable investigation; contempt.
- ORS 650.070: Director as agent for service of process.
- ORS 650.085: Other civil or criminal remedies unaffected.
- ORS 705.165: Disposition of moneys accruing from department administration and enforcement of certain laws.
- ORS 705.300: Records of actions of director regarding securities, commodity and franchise laws.
- ORS 705.310: Evidentiary effect of certain records regarding securities, commodities and franchises; fees.
- ORS 705.320: Certified documents; effect.
- ORS 705.330: Withdrawal of certain documents; review; effect.
- ORS 705.340: Access to director’s and department records regarding securities, commodities and franchises; rules; accuracy of information.
- ORS 705.350: Fees for certain documents; rules.
- OAR 441-325-0010: Definitions
Official source: https://www.oregonlegislature.gov/bills_laws/ors/ors650.html