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Abstract

Thirty-six years ago, and one year after Washington became the second state in the nation to enact a statute regulating franchise relationships, Professor Donald S. Chisum wrote the seminal article on franchising in Washington, State Regulation of Franchising: The Washington Experience. Professor Chisum's article has been one of the few reference sources for Washington franchise law, and it has been the primary source relied on by courts addressing claims under Washington's Franchise Investment Protection Act (FIPA). Since Professor Chisum originally published his article, the Federal Trade Commission (FTC) has promulgated and amended regulations governing the sale of franchises nationally, and two different groups have drafted uniform franchise acts. In Washington, the legislature significantly amended FIPA in 1991, and courts have addressed some of the unresolved issues under the statute. This Article assesses the changed state of franchise law in Washington. Part II considers the economic impact of franchising and the need for a review of franchising in Washington. Part III reviews the historical foundation for Washington's current franchise laws, the context in which they were created, and the changes to franchise law that drive our modem understanding of FIPA today. Part IV addresses the current regulatory scheme in Washington, including practical considerations such as franchise registration, disclosure, and state enforcement powers. Finally, Part V addresses civil liability for violations of FIPA's registration, disclosure, and relationship provisions.

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