a c ti vit y  of the   fir st par t y   in an a rr a n g e ment wh e re b y  the se c ond pa rt y   will  c omm e nc e   a c ti vit ies
of the  sa
me t y pe  of thos e  e nga g e d in b y  the f i rst pa rt y  but without  a n y   re qu ire d tra ini n g  AN D
without  the se c ond pa rt y   ha ving  to foll ow a  sp e c ifi c  " d a y
-
t o
-
da y  busi n e ss oper a ti n g  for mat "  a s
de fine d b y  the f irst p a rt y .
Unde r this def ini ti on, the se c ond pa rt y   a g re e s t
o e i ther  off e r pr oduc ts, g ood s, or se rvic e s m a de  
a va il a ble to him  throug h the f irst par t y , e it he r di re c tl y  or thr ou g h outs ide v e ndors a nd suppl ier s
with whom t he  fir st par t y  ha s e stablis he d a  r e latio nshi p that is  de sig ne d in some w a y  to bene fit
the se c ond
pa rt y  in hi s p ursuit of thi s a c ti vit y .
F inall y , a  tra ns a c ti on wo uld qualif y  a s a   " B usines s Oppor tuni t y " i f the  se c ond pa rt y   ha s a gre e d to
pa y   a n y  one  o r c ombi na ti on of  the f oll owing  to t he  fir st par t y :
An up
-
fr ont f e e  fo r the  o pportunit y  to par ti c ipate  i n
the a rr a n g e ment or  busi ne ss opportuni t y .
An on
-
g oing   fe e  b a se d o n e it he r g ross sa les, n e t sale s, or pr odu c t orde rs ge ne ra ted b y  the s e c ond
pa rt y , with t he  de finiti on fo r " on
-
g oin g  fe e s"   a lso t o include  a n y  fe e s int e g r a ted into t he  c ost paid
b y  the se c ond p
a rt y   for  p roduc ts, g oods, o r se rvic e s provide d to hi m b y  the  fir st par t y .
The  que sti on ha s be e n ra i se d a s to whe the r the  doll a r a mount  of $5 00.00 a s t he  " tri gg e rin g  leve l "  
of a n y  fina n c ial tra nsa c ti on in " B usiness Opp ortu nit y "   a rr a n g e ment shoul d  be  lowe re d
.
I t i s m y  opini on that the $500.00 " tri gg e rin g  lev e l "  shoul d not be lowe r e d. At the le ve l of
$500.00, virtuall y  a ll   " B u siness Oppor tuni ti e s"  tha t would be qua li fie d unde r a n y  of the  
provisions  spe c ifie d a bov e  will  be  c ove r e d a s v e r y   fe w, if a n y , o f those  
t y pe s of c ompanie s
would ha ve  struc tur e d a  f e e  a n y  low e r tha n $500.0 0 a s a  pra c ti c a l r e a li t y  o f the e c onomi c s of on
-
g oin g  busi ne ss a c ti vit y  in Amer ica .
Que sti on/Topi c : C ondit i ona l ex e mpt ion for  Tr a de  S how Promot e rs.
C omm e nt/ R e sponse: I  a gre e  with t hose  who
fe e l t ha t t he  C omm iss ion sh ou ld continue to pr ovide
a n e x e mpt ion for  Tr a de  S how Promot e rs pr ovided that the y  mak e  a v a il a ble to attende e s a t t he ir
shows a  " sp e c ific   c onsu mer  e duc a ti on noti c e ."
Tr a de  S how Promot e rs a re  not fr a n c hise br ok e rs n or a re  th e y  dir
e c tl y  or ind ire c tl y   a ff il iate d with
the f ra n c hisor e x hibi tors a t t he ir shows. F urth e rm ore , it  would be  virtua ll y   im possi ble f or T ra de  
S how Promot e rs to de ter mi ne  whe ther  or no t f ra n c hisors e x hibi ti ng  in t he ir shows a re  in
c ompl e te, pa rtia l, or non
-
c ompl ian
c e  with The  R ul e  or a n y  othe r F TC r e g ulations.
I t i s poss ibl e  for  T ra de  S how Promot e rs to r e quire  a nd to enf or c e  a   re quir e ment that a ll  
fr a nc hisors e x hibi ti ng  in t he ir shows ha ve   " a v a il a ble f or pu bli c  inspec ti on " a c urr e nt UF OC
Of fe ring  C irc ular  doc um e nt.
This re quire ment wo uld m e a n a nd shoul d c on ti nue  to re quire  that
e a c h f ra n c hisor maintain a n a c tual c op y  of the  U F OC a t t he  booth, not  for  dist ributi on but ra ther  
for  " ph y si c a l ex a mi na ti on"  b y  a n y   a tt e nde e   a t t he   show w ho re que sts  to se e  a  UF OC.
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