History of Franchise Relationship Laws (Part B)

State Legislation to Govern Franchise Relationships

There have been various successes at the state level to create protections against franchisor abuse. When starting a franchise in New York, franchise relationship laws will prohibit several unethical practices. The first state to enact such laws was California, with the California Franchise Investment Law in 1970.

In the 1970s, several other states also enacted franchise registration and disclosure laws. Today, 18 states have laws that govern the franchise relationship. The areas of primary concern under state franchise laws are the termination, renewal and transfer of franchise rights.

Laws in various states prohibit franchisor abuses such as:

• restricting free association among franchisees;
• discriminating between franchisees;
• prohibiting changes in management without good cause;
• encroaching on the franchisee's exclusive territory;
• receiving payments from third parties based on the business dealings of such parties with franchisees; or
• requiring litigation or arbitration outside the franchisee's state.

If you live in a state with franchise relationship and disclosure laws, a franchise agreement that does not cover state requirements could delay the registration of your franchise. If you are starting a franchise in New York, your New York franchise lawyer can help to make sure that a franchisor abides by state regulations.

There are state and federal laws to safeguard your franchise in New York against franchisor abuses. However, abuses do occur, and it is important that you don't go through the franchise process alone. A New York franchise lawyer can recognize unlawful conduct and help you deal with any business problems that may arise, in order to protect your franchise in New York.

How can a New York franchise lawyer help?

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.

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