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Oregon Revised Statutes

Or. Rev. Stat. § 650.005 (2026)

Definitions for ORS 650.005 to 650.100

✓ current as of May 2026
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      650.005 Definitions for ORS 650.005 to 650.100. 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]

Notes of Decisions
Cited in 4 cases, 1995–2009 · leading case: Goodyear Tire & Rubber Co. v. Tualatin Tire & Auto, Inc., 908 P.2d 300 (Or. 1995).
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Goodyear Tire & Rubber Co. v. Tualatin Tire & Auto, Inc., 908 P.2d 300 (Or. 1995). · cites it 2× “What has become known as The Oregon Franchise Act, 10 ORS 650.005 through 650.085, regulates the sale of franchises in Oregon.”
Emp. Departmet v. Nat'l Maint. Contractors of Oregon, Inc., 204 P.3d 151 (Or. Ct. App. 2009). · cites it 4× “ORS 650.005(4) defines the term “franchise” as follows: “ ‘Franchise’ means a contract or agreement, whether oral or written, by which: *487 “(a) A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing…”
Towne v. Robbins, 331 F. Supp. 2d 1269 (D. Or. 2004). · cites it 3× “ORS 650.005(8). As mentioned, the plaintiffs here originally entered into a franchise agreement with defendants in July 1991, eleven years before plaintiffs filed this lawsuit.”
State ex rel. Dep't of Forestry v. Louisiana Pac. Corp., 999 P.2d 487 (Or. Ct. App. 2000). “ORS 650.005 to ORS 650.085. In determining whether the statutory scheme conferred an entitlement to a jury trial, the court applied the interpretation methodology of PGE v.”
— Or. Rev. Stat. § 650.005(4) — 1 case
Emp. Departmet v. Nat'l Maint. Contractors of Oregon, Inc., 204 P.3d 151 (Or. Ct. App. 2009). “ORS 650.005(4) defines the term “franchise” as follows: “ ‘Franchise’ means a contract or agreement, whether oral or written, by which: *487 “(a) A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing…”
— Or. Rev. Stat. § 650.005(4)(c) — 1 case
Emp. Departmet v. Nat'l Maint. Contractors of Oregon, Inc., 204 P.3d 151 (Or. Ct. App. 2009). “ORS 650.005(4) defines the term “franchise” as follows: “ ‘Franchise’ means a contract or agreement, whether oral or written, by which: *487 “(a) A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing…”
— Or. Rev. Stat. § 650.005(5) — 1 case
Emp. Departmet v. Nat'l Maint. Contractors of Oregon, Inc., 204 P.3d 151 (Or. Ct. App. 2009). “ORS 650.005(4) defines the term “franchise” as follows: “ ‘Franchise’ means a contract or agreement, whether oral or written, by which: *487 “(a) A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing…”
— Or. Rev. Stat. § 650.005(6) — 1 case
Emp. Departmet v. Nat'l Maint. Contractors of Oregon, Inc., 204 P.3d 151 (Or. Ct. App. 2009). “ORS 650.005(4) defines the term “franchise” as follows: “ ‘Franchise’ means a contract or agreement, whether oral or written, by which: *487 “(a) A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing…”
— Or. Rev. Stat. § 650.005(8) — 1 case
Towne v. Robbins, 331 F. Supp. 2d 1269 (D. Or. 2004). “ORS 650.005(8). As mentioned, the plaintiffs here originally entered into a franchise agreement with defendants in July 1991, eleven years before plaintiffs filed this lawsuit.”
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