Is CT a franchise registration state?

The State of Connecticut is a franchise filing state for franchisors with a federally registered trademark and is a franchise registration state for franchisors without a federally registered trademark. Connecticut has not enacted franchise specific laws.

What are the obligations of a franchise?

The Responsibilities Of A Franchisor

  • Finances.
  • Marketing.
  • Managing the Products and Services of the Brand.
  • Managing the Market Area and Territory of Franchised Locations.
  • Proprietary Products.
  • Your Time.
  • Partnering with Corporate.
  • Employee Training.

What are the legal rights of a franchisee?

Within a franchise agreement the franchisee is granted the legal right to establish a franchised outlet and operation wherein the franchisee, among other things, obtains the license and right to utilize the franchisors trademarks, trade dress, business systems, operations manual and sources of supply in offering and …

Can you be kicked out of a franchise?

The franchisor, however, has the power to terminate or not to renew your contract. You can essentially be fired, your franchise taken away, resulting in you holding the metaphorical bag.

What laws govern a franchising relationship?

Federal Franchise Rule: The Federal Franchise Rule is the overarching federal law that governs the offer and sale of franchises throughout the United States, in all fifty states. The Federal Franchise Rule is issued by the Federal Trade Commission and may be found here.

What does a franchise state mean?

The Franchise Registration States are states that, in addition to the Federal Franchise Laws, have issued supplemental franchise laws and require franchisors to register their Franchise Disclosure Document (FDD) with a local state regulator before offering or selling a franchise within the state.

What decisions do franchisees make?

There are three key decisions you will need to make when investing in a franchise opportunity; these are the commercial, financial and legal decisions.

What are the obligations specifically imposed on the franchisee by local law?

There are no obligations specifically imposed on the franchisee by local law. The agreement is the law between the parties. The parties to a franchise agreement are free to include the terms that they deem proper, provided that these terms are not contrary to law, morals, good customs, public order or public policy.

Can franchisee terminate a franchise agreement?

A franchisee can terminate the agreement if a franchisor: Fails to provide training and support as stipulated in the contract. Commits fraud or misrepresents the potential profits. Fails to protect the franchisee’s business opportunity or territory.

What are the terms and conditions of franchise agreement?

The franchise agreement outlines the costs of franchising ownership. All franchises charge fees. These include the initial franchise fee, as well as ongoing fees such as the monthly royalty fee, advertising or marketing fee, and any other fee. Agreements can include late fees and interest.

Can a franchise be terminated for any reason?

Most Franchise Disclosure Documents state that the franchise agreement the franchisee must sign cannot be terminated without “good cause.” However, as franchising has evolved over the years, the franchise agreements now impose so many obligations on franchisees and contain so many “automatic termination” triggers that …

What happens if a franchisee fails?

Often the best answer to a franchise that is not succeeding is for the franchisee to sell the business to a third party who becomes the new franchisee for that territory. This allows the failing franchisee to terminate its obligations under the franchise agreement and under any lease.