Franchise Sales Laws Need Revisions to Further Their Objectives, but Federal Preemption Is Not the Solution
A recent Franchise Law Journal article recommends transmogrifying all state and federal franchise sales laws into a unitary federal standard which would preempt all state laws (the Preemption Article).1 A central premise of the Preemption Article is the chorus of franchisors’ complaints of expensive and duplicative state franchise registration requirements. The Preemption Article concludes by recommending preempting federal legislation, including several new, and some useful, provisions: 1) establishing a national database for all franchise disclosure documents (FDDs); 2) deputizing state attorneys to enforce a new federal disclosure law; and 3) providing a federal cause of action under the new federal disclosure statute