Franchise Law In New Jersey

Posted in Franchise, Podcast

Adam Siegelheim a member of the Firm’s Franchise group was featured today in a Star Ledger article where he discussed the current state of franchising as well as some recent developments in New Jersey franchise law.

Is New Jersey a good place to open a franchise?
Yes. We have the state Franchise Practices Act. That gives New Jersey citizens who are buying a franchise extra protection beyond just what the contract says between the company and the new franchise.

What other protections does New Jersey offer?
A lot of times when you sign an agreement with, say, McDonald’s, which is an Illinois company, they say if there is a dispute, you have to fight it in Illinois courts. New Jersey doesn’t enforce those. The courts here look at that clause and figure the franchisee probably can’t afford to take a case halfway across the country.

Do you worry about the ramifications of all this franchising?
From a business perspective, I don’t really worry about it. Franchising is just the wave of the future, and a lot of mom-and- pops are converting to franchise. But it may get to the point where the great little unique stores may go out of business.

You can read the entire interview here.