Do you have a successful business? Are you looking to expand your business to new markets, reach more consumers? Have others approached you about wanting to be part of your successful business or offered to market your products or services.

 

There are a myriad of expansion options:

 

Distributorships

Sale of products at wholesale prices for the purposes of resale. No cost training may be provided.  State laws govern distribution of some products, i.e. automobiles, boats, industrial equipment, and gasoline. Federal and state franchise laws may be triggered if there are payments greater than a threshold amount for services and non-resale goods.

Sales Agent

Agents sell trademarked goods or services with no payment to trademark owner. No cost training may be provided.  The sales agent relationship is not governed by state or federal franchise laws, so long as there are no payments for trademark use and assistance is provided at no cost to the agent. Trademark owners should take caution to avoid forming an employment relationship with the agents

Multi-Level Marketing

Sales agent program that offers incentives and rewards to current participants for recruiting additional participants.  So long as the payments to the current participants is only a small amount, franchise laws and regulations are not triggered. Multi-Level Marketing can fall under state laws prohibiting pyramid schemes.

Licensing

Granting of a right to use intellectual property. However no business assistance or initial fees. Care should be taken when structuring payment arrangements to prevent the triggering of franchise and business opportunity laws.  Governed by general contract law.

Call or email us today at (513) 831-400-3895, mbgettins@gettinslaw.com to explore your business expansion options!

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