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Many states are attempting to level the playing field in franchising by creating statutes known as "fair franchising" laws. These bills and enacted laws are created to soften the harsh remedies often found in franchise agreements. They are created to make franchising less one sided and thereby fair to both franchisees and franchisors.
In essence, these fair franchising laws typically override the franchisor's franchise agreement and require that the franchisor provide greater notice and opportunity to remedy a default by a franchisee located in that state; require that the franchisor renew a franchise that would likely have terminated but for the state's fair franchising law; or require a greater time period for notice to a franchisee prior to terminating a franchise. Read more »