One franchisee lawyer's comments on Congressman LaFalce's proposed federal franchise legislation
Article Abstract:
House bills that would establish federal laws for franchising address several problems faced by franchisees who have been wronged by their franchisors. They increase the statute of limitations and prohibit contracts that disclaim standard legal obligations and requirements of good faith and fair dealing. They also eliminates the requirement of showing irreparable injury before obtaining injunctive relief against termination without cause. However, the bills should have also provided protection against nonrenewal without good cause.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1992
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The case for
Article Abstract:
Requiring earnings disclosure would give the prospective franchisee-buyer crucial information about how the franchise is likely to do financially. The caveat that such information should only be used as a starting point must of course be included. Arguments against mandated disclosure, none of which are persuasive, are related to data collection, data reliability, inclusiveness, new franchisors, spin control and risk of liability.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1995
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LaFalce proposals challenge franchising
Article Abstract:
The two House bills that propose federal laws for franchising bring a welcome increase in accountability for franchisors. In providing for private lawsuits against franchisors who violate full disclosure obligations, the bills will make franchisors serious about revealing the risks involved in their enterprises. The requirement of earnings claims will lead to better investment decisions and a healthier franchising industry.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1992
User Contributions:
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