Connecticut Franchise Law
Connecticut has laws in place to regulate business franchises. Court cases such as Hartford Electric Supply Co. v. Allen-Bradley Co., Inc. have upheld the legality of these franchise statutes, which protect independent merchants from wholesalers who try to impose franchise responsibilities.
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Definition of a Franchise
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Connecticut Franchise law, section 42-133e, defines the franchise relationship within the state. Contractual agreements bind independent merchants with franchise providers. The statute limits the parent franchise's involvement, based upon its commercial trademark "significance" to the independent business.
Franchisee Rights
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Connecticut franchise law, section 42-133s, defines the parent franchise's business obligations requiring a written compensation schedule, financial disclosure statements and contract agreements. Section 42-133t and 133u protects the interest of franchise holders by limiting their liability in judgments against the parent franchise. Section 42-133y protects inheritance by allowing franchise holders to appoint a family member as a franchise successor in a will.
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Termination Rights
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Parent franchises can terminate the agreement under Connecticut franchise law, section 42-133f, which defines how a franchise can cancel, refuse to renew and refuse the transfer of ownership. A franchiser cannot terminate, cancel or fail to renew a franchisee without cause or notice. The law requires franchisers to provide a 60-day advanced written notice for termination and six-month written notice for a contact non-renewal.
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References
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