The Internicola Law Firm, P.C.

A Brief History of Franchise Relationship Laws

If you are starting a franchise in New York, you may want to familiarize yourself with the history of franchise relationship laws.

The earliest federal franchise registration and relationship laws were established in the 1970s. The first substantial federal regulation was the Federal Trade Commission (FTC) rule, which became effective in 1979. This law was established to require pre-sale disclosures at the beginning of the franchise process. It's important to note that the FTC rule does not regulate the franchise relationship, such as the termination, renewal or assignment of a business franchise.

Although federal laws failed to regulate the franchise relationship, state laws were enacted to prevent widespread franchisor abuse. The first state law which governed franchise registration and disclosure was the California Franchise Investments Law, established in 1970.

Afterward, other states began to enact franchise regulations, which were chiefly meant to protect franchisees against: 

• unjust terminations;
• denial of renewal rights;
• denial of the right to assign a franchise;
• denial of territorial rights;
• restriction of free association between franchisees;
• discrimination between franchisees; and
• pressure to meet unreasonable performance standards. 

Nowadays, there are strict franchise regulations at the state and federal levels. If you are starting a franchise in New York, and you need help understanding the history of franchise regulations which will affect your business, you can consult an experienced New York franchise lawyer.  

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Documents. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's, franchise law report to determine whether your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs to franchise their business nationwide.