Ohio recently revised its business opportunity law, effective September 30, 2012. Notably, the scope of the law was expanded to increase the threshold for the definition of the initial payment, clarify the process for agreement cancellation, and prohibit any “venue or choice of law provision that deprives a purchaser who is an Ohio resident” from the benefits of the law. Although any franchisor who complies “in all material respects” with the FTC’s franchise rule is exempt from the Ohio business opportunity law, any franchisor who does not materially comply with the FTC franchise rule and offers franchises in Ohio without complying with the Ohio business opportunity law may be subject to remedies including rescission, damages, and attorneys’ fees.
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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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