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Privacy, Security, and Regulation

“FranShares engages SEC registered and FINRA regulated broker-dealers to facilitate and manage its exempt offerings and is subject to the anti-fraud provisions of federal securities laws. As a franchise management company, FranShares is not required to register with the SEC as an Investment Adviser. FranShares’ offerings are generally exempt from registration with the SEC under Regulations D, A+ or CF.”

Franchising is regulated in the United States at both the federal and state levels: at the federal level, by the Federal Trade Commission (the “FTC”) through its FTC Franchise Rule; and at the state level, by various states’ franchise registration/disclosure laws; franchise relationship laws; business opportunity laws; and “little FTC” acts.

The process for subscribing for shares in FranShares’ offerings is managed by FINRA regulated brokers, Templum Markets and DriveWealth LLC. As part of their Know Your Customer and Anti-Money Laundering checks they are required to collect personal information, including your social security number.

Returns of investments in FranShares offerings will generally require investors to pay capital gains taxes on shares sold for a profit. Dividends (distributions) will be treated as either ordinary or qualified dividends depending on your holding period and specific tax situation.

Please email any questions to and we will be happy to help.

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