Examples of Other Unlawful Practices

Examples of Other Unlawful Practices
(as of June 1, 2015)
Unlawful Practice
1. Restricting the right of free
association among franchisees for
any lawful purpose.
2. Discriminating between franchisees
in the charges for royalties, goods,
services, equipment, rentals,
advertising services, or in any other
business dealing, unless such
discrimination is based on
reasonable distinctions and is not
3, Imposing unreasonable standards of
performance on a franchisee.
4. Requiring or prohibiting any change
in management of any franchisee
except for reasonable cause.
5. Obtaining money, goods, services, or
any other benefit from any other
person with whom the franchisee
does business on account of such
business except under certain
conditions (e.g., disclosure).
6. Requiring a franchisee to purchase
goods or services from the franchisor
or from designated sources of supply
unless such purchase is reasonably
necessary for a lawful purpose
justified on business grounds.
7. Establishing a similar business or
granting a franchise for the
establishment of a similar business at
a location within the franchisee’s
exclusive territory, if any.
Arkansas, California, Hawaii, Illinois,
Iowa, Michigan, Minnesota, Nebraska,
New Jersey, Rhode Island, Washington
Hawaii, Illinois, Indiana, Minnesota,
Hawaii, Minnesota, Nebraska,New Jersey,
Arkansas, Minnesota, Nebraska, New
Hawaii, Indiana, Washington
Hawaii, Indiana, Iowa, Washington
Hawaii, Indiana, Minnesota, Washington

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