Franchises; Trade Names; Insignia

PURPOSE: This rule sets forth the requirements that the use of a trade name in advertising must be clearly revealed that the broker owns and operates the entity and, if the franchisor has no legal liability, that must also be revealed on all documents. (1) If a broker maintains any business relationship or affiliation, whether by franchise agreement, contract or otherwise, with another organization and uses the name, trade name or insignia of the other organization in any manner in real estate advertising, the broker shall furnish the commission a copy of the franchise agreement or contract and such other related information as the commission may require. (2) If the franchise agreement or contract under which a broker is operating provides that the franchisor or owner of the trade name or insignia has no legal liability for the actions of the broker using the trade name or insignia, the broker shall include in all listing agreements, contracts for sale and closing statements a clear and explicit statement to that effect in type reasonably calculated to gain the attention of the reader of the document. AUTHORITY: section 339.120, RSMo Supp. 1997.* This rule originally filed as 4 CSR 250-8.080. Original rule filed Nov. 14, 1978, effective Feb. 11, 1979. Amended: Filed Feb. 2, 1994, effective Aug. 28, 1994. Amended: Filed Aug. 1, 1997, effective March 30, 1998. Moved to 20 CSR 2250-8.080, effective Aug. 28, 2006. *Original authority: 339.120, RSMo 1941, amended 1963, 1967, 1981, 1988, 1993, 1995.