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Legal Maneuvers

When franchising meets the Web...

This story appears in the June 1998 issue of Entrepreneur. Subscribe »

National franchisors no longer have to worry about stepping on the toes of state franchise regulators when advertising on Web sites--at least not in Indiana.

In response to concerns that franchisor Web sites may violate state franchise laws if accessed in states where the franchisors are not registered, the Indiana Securities Commission announced last December that if the franchisor indicates on the site that the offering is not available in Indiana, there is no violation of Indiana law. "What this order attempts to do is allow franchisors to utilize the Internet without fear of violating our law," explains Bradley W. Skolnik, Indiana's securities commissioner.

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