# ORS § 650.005: 650.005 Definitions for ORS 650.005 to 650.100

> Oregon · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.005

## Section

- **Citation:** ORS § 650.005
- **Heading:** 650.005 Definitions for ORS 650.005 to 650.100
- **Jurisdiction:** Oregon
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** OR Code / Title 50 / Chapter 650 / Section 650.005

## Text

As used in ORS 650.005 (Definitions for ORS 650.005 to 650.100) to 650.100 (Disposition of civil penalties) , 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]

Source: Section 650.005 — Definitions for ORS 650.005 to 650.100 , https://www.­oregonlegislature.­gov/bills_laws/ors/ors650.­html (accessed May 26, 2025).

## Nearby sections

- [ORS § 650.005 650.005 Definitions for ORS 650.005 to 650.100](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.005.md)
- [ORS § 650.010 650.010 Franchise sellers required to maintain books and records](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.010.md)
- [ORS § 650.015 650.015 When franchise sale or offer for sale is made in this state](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.015.md)
- [ORS § 650.020 650.020 Liability of franchise seller](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.020.md)
- [ORS § 650.050 650.050 Rules](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.050.md)
- [ORS § 650.055 650.055 General duties and powers of director](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.055.md)
- [ORS § 650.057 650.057 Orders issued under ORS 650.055](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.057.md)
- [ORS § 650.060 650.060 Investigative powers of director](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.060.md)
- [ORS § 650.065 650.065 Injunctive relief](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.065.md)
- [ORS § 650.070 650.070 Director as agent for service of process](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.070.md)
- [ORS § 650.075 650.075 Manner of executing service of process](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.075.md)
- [ORS § 650.080 650.080 When personal service of process required](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.080.md)
- [ORS § 650.085 650.085 Other civil or criminal remedies unaffected](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.085.md)
- [ORS § 650.095 650.095 Civil penalties](https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.095.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_OR_T50_C650_S650.005. Check the current official text before relying on it. Not legal advice.
