Examples of Other Unlawful Practices

• Pages: 397-398

397

APPENDIX F

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

arbitrary.

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.

States

Arkansas, California, Hawaii, Illinois,

Iowa, Michigan, Minnesota, Nebraska,

New Jersey, Rhode Island, Washington

Hawaii, Illinois, Indiana, Minnesota,

Washington

Hawaii, Minnesota, Nebraska,New Jersey,

Washington

Arkansas, Minnesota, Nebraska, New

Jersey

Hawaii, Indiana, Washington

Hawaii, Indiana, Iowa, Washington

Hawaii, Indiana, Minnesota, Washington