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What is the New Jersey Franchise Practices Act?

The New Jersey Franchise Practices Act (N.J.S.A 56:10-1 et seq.) regulates the relationship between franchisors and franchisees in the State of New Jersey. If you are buying a franchise in New Jersey or selling a franchise in New Jersey then it is important to understand how the New Jersey Franchise Practices act will impact your franchise transaction.

This act supplements the contractual rights of New Jersey franchisees and is designed to create a more balanced relationship between franchisor and franchisee. Among other protections afforded New Jersey franchisees, the Franchise Practices Act places restrictions on a franchisors ability to terminate a franchise and supplements the rights of franchisees to transfer their franchise.

When establishing franchises in the State of New Jersey franchisors must be aware of the supplemental protections granted to franchisees. This is especially the case since violation of the NJ Franchise Practices Act will expose franchisors monetary damages and franchisees legal fees.

When faced with issues of termination and a dispute with your franchisor, New Jersey franchisees must be aware of the supplemental rights afforded by the Franchise Practices Act.

For additional information about the New Jersey Franchise Practices Act and about buying a franchise in New Jersey contact The Internicola Law Firm, P.C. at (718) 979-8688.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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