Once an FFL is obtained, there are varying types of FFLs. As a business grows, it may be necessary to apply for a different type of FFL. With these various FFL type licenses, also comes an increased level of regulation. Particularly with manufacturing or modifying firearms, an FFL needs to be very cautious as to not violate ATF statutes. Legal advice to maintain FFL compliance is crucial as weapons are manufactured. To sell modified or manufactured weapons, the ATF requires that a serial number is required. When storing manufactured weapons, specific regulation applies and a firearm lawyer pays attention to the details that avoid ATF audit pitfalls. Original Equipment Manufacturer (OEM) agreements can establish a lucrative business relationship that helped a firearm company make money where traditionally a competitor has dominated. The agreement can vastly improve the operation of a FFL and increase the manufacture of your product. This business potential is not without risk to your FFL. Clarior Law can craft the OEM agreement that the arrangement is beneficial for your company in the long term. At some point, it may behoove an FFL to subcontract manufacturing work through a different firearms company. This FFL variance work is best moderated through sound legal representation so that the relationship may benefit from the arrangement.
Michael Steck - JD Business, Non-Profit and Estate lawyer