Corporate
Feb. 16, 2011
The Long Reach of Franchise Laws
How the effects of California's business franchise laws have spilled over into other practice areas. By David Gurnick of Lewitt Hackman.
Laws can have effects beyond the problem they solve. California's business franchise laws are an example. Distribution of goods and services through franchising expanded widely in the 1960s and 1970s. But so did fraudulent practices, such as franchisors promising returns and assistance they could not deliver. In 1970, Gov. Ronald Reagan signed the Franchise Investment Law (FIL) making California the first state with legislation to protect pot...
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