The New Jersey Franchise Practices Act, N.J.S.A. 56:10-1, et seq. (NJFPA) is a powerful tool for those businesses that qualify for its protections. Under the NJFPA, a franchisor cannot terminate a franchisee without good cause, even where doing so would be perfectly acceptable under the parties' contract.
The NJ Franchise Practices Act and the Legacy of 'Instructional Systems'
The New Jersey Franchise Practices Act is a powerful tool for those businesses that qualify for its protections. Under the NJFPA, a franchisor cannot terminate a franchisee without good cause, even where doing so would be perfectly acceptable under the parties' contract. The NJFPA also prohibits a franchisor from imposing "unreasonable standards of performance" on a franchisee.
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