Dady & Gardner, P.A. Partner Ron Gardner dives into franchise fraud and the legal challenges franchisees face in his latest article, Tightening the Noose on Franchise Fraud, published in the New York Law Journal. Gardner highlights California’s new SB 919 law, a pioneering step toward increasing transparency in franchise broker practices and safeguarding franchisees from misleading financial representations.
“There is a large incentive, with very little consequence, for brokers to say what they feel needs to be said to make the sale,” Gardner explains. This new law is an important “step in the right direction,” ensuring that, “franchisees are going to be better off, and franchisors are hopeful that this will help “clean up the industry” from folks who will say anything to make a franchise sale and then disappear into the night with virtually no liability.”
This critical analysis sheds light on how regulatory changes aim to clean up the franchising industry, creating a fairer landscape for franchise buyers. Discover why this law matters and how it could pave the way for nationwide reform.
Read more about Ron’s insights here: New York Law Journal
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