What are the restrictions on franchise activities?

In Texas, franchise activities are regulated by the Texas Business and Commerce Code. This code includes restrictions on franchise activities. First, franchisees and franchisors must both sign a written franchise agreement. This document must outline the rights and responsibilities of each party. It must also include details about the franchise fees, reporting requirements, locations, and any other relevant information. Second, franchisees are limited to only selling products that the franchisor has approved. Franchisees must also abide by the franchisor’s standards and policies or risk being terminated. Third, franchisors must make certain disclosures to the franchisee prior to the signing of the franchise agreement. These disclosures include information about the franchisor, the products to be sold, and any fees associated with the franchise. Fourth, the Texas Business and Commerce Code requires that franchisors maintain certain records and records of any franchise agreements that are cancelled or terminated. Finally, franchisors must offer a continuous program of assistance and support to the franchisee. This may include training and marketing materials. Overall, Texas has several laws in place to protect both franchisees and franchisors. These laws ensure that both parties understand their rights and responsibilities as indicated in the franchise agreement.

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What are the restrictions on franchise activities?

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