Franchise commentary
Article Abstract:
Two pieces of proposed legislation would undermine the relationship between franchisors and franchisees, and open the floodgates of frivolous and wasteful litigation. The Federal Franchise Disclosure and Consumer Protection Act requires franchisors to make an earnings claim, yet prohibits claims which could have the effect of misrepresenting the earnings potential of a franchise. The Federal Fair Franchise Practices Act leaves many legal questions unanswered and is detrimental to the interests of consumers.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1992
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New Iowa franchise law: franchisors (and franchisees) beware
Article Abstract:
The Iowa Franchise Act will have the effect of diminishing the opportunities for franchisees by making Iowa inhospitable to franchisors. It grants franchisees territorial rights, prohibits most noncompete covenants, requires good cause for termination or nonrenewal and gives franchisees the right to obtain supplies from any source, subject to certain restrictions. The Act also prohibits contractual provisions that would improperly designate jurisdiction in forums outside Iowa.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1992
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Some remarks on the Federal Fair Franchise Practices Act
Article Abstract:
The proposed Federal Fair Franchise Practices Act would intrude on the relationship between franchisor and franchisee. It artificially tries to reduce the tension inherent in that relationship by prohibiting tying agreements, termination without cause and noncompete clauses. These prohibitions endanger the integrity of the franchise system.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1992
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