Purpose and intent.

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§482E-1 Purpose and intent. (a) The purpose of this chapter is to regulate the sale of franchises in the State to minimize losses to the franchisee in cases where the franchisor or the franchisor's representative has not provided full and complete information regarding:

(1) The franchisor-franchisee relationship;

(2) The details of the contract between the franchisor and franchisee; and

(3) The prior business experience of the franchisor.

(b) It is the intent of the legislature to:

(1) Provide each prospective franchisee with the information necessary to make an intelligent decision regarding franchises being offered;

(2) Prohibit the sale of franchises that would lead to fraud or a likelihood that the franchisor's promises would not be fulfilled; and

(3) Protect the franchisor or subfranchisor by providing a better understanding of the relationship between the franchisor or subfranchisor and the franchisee with regard to their business relationship. [L 1974, c 18, pt of §1; gen ch 1985; am L 2008, c 19, §46]


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