- Are the territories that were promised sufficient for the business to succeed?
- Are the franchise fees, capital and investment requirements and mandatory purchase of
- products and services reasonable and fair?
- Are the standards for operation of the franchise enforced uniformly?
- Are the non-competition restrictions reasonable?
- Did the initial offering documentation contain full disclosure of pending litigation and
- potential claims?
The franchise practices laws differ from state to state. For example, many states have passed laws that require offering circulars for potential investors. Some actually have restrictions that relate to particular industries, such as motor vehicle franchises. Overall, however, the franchise laws generally revolve around three questions: (a) who is considered a franchisee; (b) what protections and requirements relate to those franchisees; and (c) what are the post-termination rights and obligations of franchisees?
The Nissenbaum Law Group has both analyzed the language of franchise agreements and handled litigation involving franchise law. Moreover, it offers a Franchise Law Blog to the public that contains a host of information beneficial both to those contemplating a franchise and those who are already franchisees.