Power Shift?

As I predicted in late 2012, we are sure to see several states advance new
legislation or revisit existing laws that impact the franchise relationship.
What I did not predict was that Ohio would lead the way.  The recently
amended Ohio  Business Opportunity Plan Law clarifies the private right of
action for franchisees for material omissions or misstatements in a
franchisor’s Franchise Disclosure Document (FDD).  It also invalidates any
contractual provision that provides for a jurisdiction or forum outside the
state of Ohio (for Franchisees located in Ohio).  An argument can be made
that the new law provides benefit for franchisors and franchisees in Ohio.
The attached link provides one author’s analysis.


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Filed under Franchise Insight, In The News, Restaurant & Hospitality Law, The Franchise Legislation Monitor

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