What are the restrictions on franchise activities?

In Washington, there are various restrictions on franchise activities, with the primary goal of protecting consumers. First, all franchisors must make a disclosure document available to prospective franchisees that outlines the terms of the agreement, the financial investment that is required, the total expected costs of the franchise, and any restrictions that apply. Additionally, all franchisors are required to register their franchises with the Washington State Department of Licensing. Franchisees in Washington must also adhere to specific restrictions. Most notably, all franchisees must abide by the “franchise relationship law,” which states that the franchisor must provide access to supplies, services, and personnel at reasonable prices. The franchisor may not make unreasonable contracts with the franchisee or with other franchisees. Furthermore, the franchisor must act in good faith and with good will when dealing with the franchisee. Finally, Washington requires that all franchisees adhere to truthful advertising principles and refrain from making false or misleading claims. This means that all franchises must accurately market their services and refrain from making false promises or guarantees. Overall, the restrictions on franchise activities in Washington are designed to protect consumers by ensuring that all franchises operate in an honest and ethical manner. By adhering to these regulations, franchisees and franchisors are able to enter into successful, mutually beneficial agreements.

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What are the restrictions on franchise activities?

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