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Log In / Register | Oct 20, 2017

Court Rules Franchise Laws Reflect Fundamental State Policies That Cannot Be Disclaimed by Contract

An Arizona court has ruled that franchise disclosure laws reflect fundamental state policies, which cannot be disclaimed by contract fine print in Zounds Hearing Franchising, LLC v. Bower.

Why Franchise Legislation? Franchisor Disclosure Laws Have Wrongly Become Franchisor Disclaimer Laws

Franchisors have wrongfully perverted franchise disclosure into franchisor disclaimer. Franchise disclosure, however, is not intended to protect franchisors from misrepresentation claims in the future. To the contrary, the Franchise Disclosure Document (FDD) is designed to provide truthful and reliable information to franchisees seeking to purchase franchises.

GAO: Substantial Franchise Failure Rates of SBA Guaranteed Loans

The Government Accountability Office (GAO) has just released a report examining a subset of the substantial defaults in Small Business Administration (SBA) guaranteed loans to franchisees.

Why Franchise Legislation? The Need for Voiding Out State Venue Clauses

Most franchise agreements provide for venue of franchise lawsuits in the home state of the franchisor. In football terms this is called home field advantage.

Why Franchise Legislation? The Need for Statutory Duty of Franchisor Competency

One would think that franchisors should owe a duty of competency to their franchisees. After all, franchises are sold on the very idea that their franchise system excels in its particular business.

A Technical Look at Why California’s Franchising Abuse Laws Need an Update

On April 6, I faxed this support letter on California's need for the The Level Playing Field for Small Businesses Act (AB2305) to the honorable Jared Huffman, assembly member of the California State Assembly. I was one of two experts invited to testify at the hearing of California's Judiciary Committee on the need for Assembly Bill 2305

California Holds Out-of-State Arbitration and Choice-of-Law Clauses Unenforceable

The California Court of Appeal has once again declined to enforce several one sided franchise agreement clauses in Winter v. Window Fashions Professionals, Inc.