significant power, right, or continuing interest
Defined in 1 place of the United States Code.
The term “significant power, right, or continuing interest” includes, but is not limited to, the following rights with respect to the interest transferred:
(A) A right to disapprove any assignment of such interest, or any part thereof.
(B) A right to terminate at will.
(C) A right to prescribe the standards of quality of products used or sold, or of services furnished, and of the equipment and facilities used to promote such products or services.
(D) A right to require that the transferee sell or advertise only products or services of the transferor.
(E) A right to require that the transferee purchase substantially all of his supplies and equipment from the transferor.
(F) A right to payments contingent on the productivity, use, or disposition of the subject matter of the interest transferred, if such payments constitute a substantial element under the transfer agreement.
Source
- 1994–present26 U.S.C. § 1253Internal Revenue Code · Transfers of franchises, trademarks, and trade names · for purposes of this section