Here’s an interesting case I recently came across. It features a franchisee based in Italy suing its California-based franchisor in California, alleging violations of California’s franchise laws.
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?