---
kind: "section"
citation: "16 C.F.R. § 437.8"
title: "16"
number: "437.8"
heading: "Franchise exemption."
url: "https://uscodex.org/cfr/16/437.8"
---

# §437.8. Franchise exemption.


The provisions of this Rule shall not apply to any business opportunity that constitutes a “franchise,” as defined in the Franchise Rule, [16 CFR part 436](/cfr/16/part436.md); provided, however, that the provisions of this Rule shall apply to any such franchise if it is exempted from the provisions of [part 436](/cfr/16/part436.md) because, either:

- (a) Under [§ 436.8(a)(1)](/cfr/16/436.8.md?p=a-1), the total of the required payments or commitments to make a required payment, to the franchisor or an affiliate that are made any time from before to within six months after commencing operation of the franchisee's business is less than $500, or
- (b) Under [§ 436.8(a)(7)](/cfr/16/436.8.md?p=a-7), there is no written document describing any material term or aspect of the relationship or arrangement.

## Notes

### Authority

Authority: 15 U.S.C. 41-58.

### Source

Source: 76 FR 76860, Dec. 8, 2011, unless otherwise noted.