Oregon franchise laws regulate franchises within the state.
Here are key points regarding franchise laws in Oregon:
1. Franchise Registration: Oregon requires franchisors to register their franchise offering with the Oregon Department of Justice before offering or selling franchises in the state. Franchisors must provide a Franchise Disclosure Document (FDD) containing detailed information about the franchise, including financial statements, fees, obligations, territory rights, and other crucial details. The FDD must be provided to potential franchisees at least 14 days before any agreement is signed or any payment is made.
2. FDD Requirements: The FDD serves as a comprehensive document providing potential franchisees with essential information about the franchise opportunity. It includes details about the franchisor’s background, the franchise system, initial investment, ongoing fees, obligations, and other relevant information.
3. Franchise Relationship Law: Oregon has laws that govern the ongoing relationship between franchisors and franchisees. These laws cover aspects such as termination, non-renewal, transfer of the franchise agreement, and the obligation of good faith and fair dealing between the parties.
4. Termination and Non-Renewal: Franchisees in Oregon are granted certain rights in cases of termination or non-renewal of their franchise agreement. Franchisors are generally required to provide notice and sometimes an opportunity for the franchisee to address any identified issues before termination.
5. Remedies and Enforcement: Violations of franchise laws in Oregon can result in penalties, fines, and potential liabilities for franchisors. Franchisees might have remedies available to them, such as damages or rescission of the franchise agreement, if the franchisor breaches these laws.
Understanding and complying with Oregon franchise laws are crucial for both franchisors and franchisees to ensure a fair and transparent relationship. Seeking legal advice from professionals experienced in franchise laws in Oregon is advisable for parties involved in a franchise agreement within the state.
Oregon Corporate Securities Section
Dept. of Insurance & Finance
Labor & Industries Bldg.
Salem, OR 97310
(503) 378-4387