Financial Institutions

CHAPTER 19-28.1
Franchise Investment Act

SECTION 19-28.1-2

§ 19-28.1-2. Legislative intent.

The legislature finds that franchisees may suffer substantial losses when the franchisor does not provide complete information regarding the franchisor and the franchise relationship. The legislature also finds that many franchisees lack bargaining power and purchase a franchise when they are unfamiliar with operating a business, the franchised business and with industry practices in franchising. The act seeks to ensure that each offeree receives the information necessary to make an informed decision about the offered franchise. Further, it is the intent of this chapter to prohibit the sale of franchises when there is a likelihood that the franchisor's promises will not be fulfilled.

History of Section.
(P.L. 1993, ch. 395, § 2.)