USA – CALIFORNIA
Nevada
California
Sacramento
Law and Practice Contributed by: Dawn Newton and Hayley M. Lenahan Donahue Fitzgerald
Pacific Ocean
Contents 1. An Introduction to Franchising P.102 1.1 Franchise Market Overview p.102 1.2 Franchise Regulation p.102 1.3 Definition of a Franchise Agreement p.103 2. Franchise Disclosure P.103 2.1 Mandatory Disclosure p.103 2.2 Consequences of a Failure to Disclose p.104 2.3 Franchise Disclosure Exemptions p.104 2.4 Franchise Disclosure Language/Translation Requirements p.105 3. Franchise Registration P.105 3.1 Mandatory Registration p.105 3.2 Franchise Registration Process p.105 3.3 Consequences of a Failure to Register p.106 4. Other Requirements P.107 4.1 Past-Profitability Requirements p.107 5. Duration, Renewal and Termination P.107 5.1 Duration of a Franchise Agreement p.107 5.2 Franchise Renewal p.107 5.3 Termination of the Franchise Agreement p.107 6. Restrictions on Competition in Franchise Agreements P.108 6.1 Treatment of Competition Restrictions in Franchise Agreements p.108 6.2 Exclusive Territories and Competing Businesses p.108 6.3 Requiring Franchisees to Purchase Specific Goods and Services p.108 6.4 Channel Reservation p.108 6.5 Vertical Agreement Block Exemptions p.108
7. Joint Employer Risk and Vicarious Liability P.109 7.1 Joint Employer Laws p.109 7.2 Vicarious Liability p.109 8. Choice of Governing Law P.109 8.1 Possibility of a Franchisor Stipulating Non-Local Law p.109 8.2 Local Law Requirements p.109 8.3 Mandatory Content p.109 8.4 Prohibited Provisions in Local Law p.110 9. Dispute Resolution P.110 9.1 Enforcement of Foreign Judgments p.110 10. Payment and Taxes P.110 10.1 Restrictions or Limits on Franchisee Fees and Royalties p.110 10.2 Withholding Tax p.110 10.3 Foreign Currency Controls p.110 11. Execution Formalities P.111 11.1 Authentication, Notarisation, Witnessing, Etc p.111 11.2 Electronic Signatures p.111 11.3 Stamp Duties p.111
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