Oregon Franchising Laws
In Oregon, franchisors operate within a non-registration framework. This means the state does not require franchisors to file or register their Franchise Disclosure Document (FDD) with a state-level agency before they can begin to offer and sell franchises.
Translation: The primary regulation governing pre-sale disclosure comes from the Federal Trade Commission (FTC) Franchise Rule. But, I always recommend hiring Oregon Franchise Attorneys if you want to franchise in the sate.
Oregon’s statutes, specifically the Franchise Transactions Act, do address franchising.
And while the state does not have a business opportunity law that necessitates a separate filing for exempt franchises, its franchise act does impose certain obligations. The law requires a franchisor to provide a prospective franchisee with the FDD at least 14 days prior to the signing of a contract or the exchange of any money.
Furthermore, franchisors are mandated to maintain a complete set of books and records related to their franchise sales.
For the continuing relationship between franchisor and franchisee, Oregon law provides a private right of action for franchisees who have a claim against their franchisor, particularly for misrepresentation or the omission of material facts. This allows a franchisee to sue for damages and potentially recover attorney fees.
In addition, the law implies a duty of good faith and commercially reasonable conduct in the franchise relationship. Specific statutes address issues like termination, non-renewal, and the transfer of a franchise, providing a layer of protection for franchisees beyond the terms of the franchise agreement itself.
Here is a list of franchise lawyers you can hire in Oregon
Dennis Steinman
Kell, Alterman & Runstein, L.L.P.
520 SW Yamhill Street
Suite 600
Portland, Oregon