New Jersey recently expanded the scope of its Franchise Practices Act to include persons or entities who do not make a majority of their sales directly to consumers and who have “an office or warehouse from which franchisee personnel visit or call upon customers or from which the franchisor’s goods are delivered to customers.” Before, a franchisee was entitled to the Act’s protections only if it maintained “a fixed geographical location at which the franchisee offers and displays for sale the franchisor’s goods or offers for sale and sells the franchisor’s services.” Under the new amendment, franchisors need good cause to terminate, cancel, or fail to renew an agreement with this new class of franchisees.
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The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP.
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