NJ's Franchise Practices Act: A Broadly Worded Outlier

Law360, New York (June 24, 2015, 10:10 AM EDT) -- The New Jersey Franchise Practices Act, N.J.S.A. 56:10-1 et seq, is one of the most far-reaching statutes under New Jersey law, yet its scope and importance have long been unknown to the retail business community and the attorneys who represent them. The basics of the statute are as most expect. If there is a franchise as defined under the statute, the putative franchisor cannot end the relationship without demonstrating cause and providing notice and an opportunity to cure. In other words, once the relationship is established, the Legislature has made it very difficult for the more powerful of the contracting parties — the franchisor — to walk away, even if the contract among the parties permits termination at will....

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