One of the most misunderstood aspects of California’s franchise law is its regulation of negotiated sales. Under the law, if a California franchisee has been given a “special deal” that is not part of the franchisor’s standard offering, then the franchisor may be required to disclose the terms of that deal to subsequent California franchisees during the following year. How can your franchise comply with the law?
One of the areas of franchise law that is often misunderstood by new and emerging franchisors is state advertising filing requirements. This article is a summary of how a franchisor can comply with franchise advertising filing laws.
Some franchisors continue to use a different Franchise Disclosure Document for each state that has a franchise or registration law. This approach increases the administrative burden on franchisors, as well as the risk of unintentional violation of a state’s franchise law where more than one state law applies to a transaction.