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The Significance of State Franchise Laws

Date: 10/08/2010 | Category: Start a Franchise | No comments

If you are starting a franchise in New York‚ you need to be aware of the state's franchise relationship regulations. These regulations are meant to protect you against franchisor abuse. By understanding how state laws regulate the franchisor/franchisee relationship‚ you will be able to recognize any franchisor abuse that may arise.

State laws prohibit franchisor abuses such as:

  • the restriction of free association among franchisees;
  • the discrimination of franchisees;
  • management changes without good cause;
  • encroachment upon the franchisee's exclusive territory; and
  • litigation or arbitration outside the franchisee's state. 

Federal laws‚ on the other hand‚ have been established to regulate pre-sale disclosures at the beginning of the franchise process. These regulations on pre-sale disclosures require a franchisor to provide specific information before a brand new franchise is sold. This information must include certain aspects of the business's history‚ rules on the franchisee's use of intellectual property and an estimation of a franchisee's initial investment costs.

Before starting a franchise in New York‚ you should talk with a New York franchise lawyer to discuss how the history of franchise relationship regulations will affect your business. A New York franchise lawyer can educate you on the franchise process and represent you should unlawful franchisor abuse occur.

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.

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