Franchising under State Franchise Laws

Summary

This practice note provides a high-level overview of state franchise sales laws and state franchise relationship laws, highlighting critical issues and considerations. In addition to the body of federal franchising laws, including the Federal Trade Commission Franchise Rule a number of states have adopted franchise sales and/or franchise relationship laws that impose additional or different requirements on parties to a franchise. Failure to comply with these laws can result in fines, sanctions by state authorities, and significant legal exposure.