LegalFix

Franchise law

Franchise law includes the various sources of state and federal law (statutes, rules, regulations, contracts) that govern the registration, offer, and sale of franchises, and the relationship between franchisors and franchisees—including any personal guarantee of the franchisee’s obligations.

At the federal level, the Federal Trade Commission (FTC) regulates franchising under the FTC Franchise Rule—which (1) requires certain disclosures to potential franchisees before signing a franchise agreement or contract and (2) prohibits unfair and deceptive trade practices. And at the state level, some states have passed franchise laws that impose state registration obligations, regulate the offer and sale of franchises, and prohibit certain franchise agreement provisions.

Under the FTC Franchise Rule, a business or licensing arrangement will be regulated as a franchise if it has three elements: (1) the franchisor grants the franchisee a right to use the franchisor's trademark; (2) the franchisor exerts or has the authority to exert a significant degree of control or assistance over the franchisee's method of operation; and (3) the franchisee pays the franchisor a fee of at least $570. Even if the parties to a contract call it a licensing agreement, a distribution agreement, or explicitly state that it is not a franchise arrangement, if these three elements are present, the FTC Franchise Rule and other federal laws, regulations, and FTC rules will apply.

The FTC Business Opportunity Rule and state statutes governing the marketing of business opportunities and the related sale or lease of products, equipment, supplies, or services may also apply to franchises and the relationship between franchisors and franchisees.



State Statutes for the State of Texas

CHAPTER 104 - RESTRICTIONS ON CHARGES BY MOTOR FUEL FRANCHISORS

(iii) the unexpired portion of any franchise transferred or assigned under the franchise provisions or any applicable provision of state or federal law authorizing the transfer or assignment regardless of the franchise provisions; and

CHAPTER 8501 - ANGELINA AND NECHES RIVER AUTHORITY

STATE FRANCHISE LAW NOT APPLICABLE.

CHAPTER 51 - GENERAL POWERS OF MUNICIPALITIES

On adoption of the powers, the municipality has the same rights, powers, privileges, immunities, and franchises as a Type A general-law municipality.

CHAPTER 2301 - SALE OR LEASE OF MOTOR VEHICLES

(a) Notwithstanding the terms of any franchise or any other law, a franchised dealer's preparation, (b) Notwithstanding the terms of any franchise or any other law, a manufacturer or distributor shall ACTION ON FRANCHISE. (a) Notwithstanding the terms of any franchise or any other law, an action or proceeding brought by

CHAPTER 152 - TAXES ON SALE, RENTAL, AND USE OF MOTOR VEHICLES

(A) the sale of a new motor vehicle in which the purchaser is a franchised dealer who is authorized by law and by franchise agreement to offer the vehicle for sale as a new motor vehicle and who acquires

CHAPTER 364 - COUNTY SOLID WASTE

enters into for solid waste collection and transportation services under this subchapter or under other law supersedes inside of the municipality's boundaries any other franchise granted or contract entered into

CHAPTER 2267 - PUBLIC AND PRIVATE FACILITIES AND INFRASTRUCTURE

general law governing such conveyance and subject to the rights of an existing utility under a license, franchise , easement, or other right under law, to the contracting person for the consideration determined by the

CHAPTER 182 - POWERS, ORGANIZATION, AND FINANCIAL REQUIREMENTS

to a state trust company does not affect the state trust company's obligation to pay any corporate franchise tax required by state law.

Federal Statutes

§ 2806. Relationship of statutory provisions to State and local laws

franchise or to the nonrenewal (or the furnishing of notification with respect thereto) of any such franchise relationship unless such provision of such law or regulation is the same as the applicable provision relationship unless such provision of such law or regulation is the same as the applicable provision or by any applicable provision of State law which permits such transfer or assignment without regard or by any applicable provision of State law which permits such transfer or assignment without regard

§ 1392. Local laws continued; courts

conflict with the provisions of this section and sections 1391 [1] and 1394 to 1396 of this title, the laws regulating elections and the electoral franchise as set forth in the code of laws published at Amalienborg

§ 2277a–12. Exemption from taxation

Notwithstanding any other provision of law, the Corporation, including its franchise, and its capital

§ 628. Extension of corporate existence

the act of the shareholders owning two-thirds of its stock, or by an Act of Congress or unless its franchise becomes forfeited by some violation of law.

§ 1226. Motor vehicle franchise contract dispute resolution process

(2) Consent required Notwithstanding any other provision of law, whenever a motor vehicle franchise

§ 552. Consumer protection and customer service

Nothing in this subchapter shall be construed to prohibit any State or any franchising authority from enacting or enforcing any consumer protection law, to the extent not specifically preempted by this Consumer protection laws Nothing in this subchapter shall be construed to prohibit any State or any franchising authority from enacting or enforcing any consumer protection law, to the extent not specifically preempted

§ 341. General enumeration of powers

have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law.

§ 2277a–6. Overpayment and underpayment of premiums; remedies

bank, citing this subsection and stating that the bank has failed to so file or pay as required by law , all the rights, privileges, and franchises of the bank granted to it under this chapter shall be thereby bank, citing this subsection and stating that the bank has failed to so file or pay as required by law , all the rights, privileges, and franchises of the bank granted to it under this chapter shall be thereby