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Do state laws and rules for franchises differ?
Yes, which is why it is so important to deal with an attorney familiar with franchising generally and your state's laws in particular. Some states have rather strict franchise regulations others do not. For example California, Hawaii, Illinois, New York, Rhode Island have enacted "franchise registration" statutes governing sales practices. Other states, including Florida, Georgia, Iowa, Kentucky and North Carolina regulate franchising through "business opportunity" acts. A few states, such as Connecticut, Michigan, Minnesota and South Dakota have both. Maryland, Arkansas, California, Illinois, Iowa, and Minnesota are among the states with laws regulating termination and non-renewals of agreements. And proposed ads must be pre-approved in California Illinois, Indiana, and Maryland prior to publication.
Click for a helpful article that discusses in part the variety of state franchising statutes. |
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