New Mexico Franchise Forms - New Mexico Franchise Law

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New Mexico Franchise Forms FAQ

What is a franchise?

There is a definition of a franchise which has been developed by the Federal Trade Commission. Basically, a franchise involves an owner of a trademark, trade name and/or copyright giving others a license under certain conditions to use these trademarks, trade names or copyrights in providing goods or services to the public. The franchisor is the party who grants the franchise, and the franchisee is the party who receives the franchise.

What is the legal relationship between a franchisor and franchisee?

Technically, the relationship between a franchisor and franchisee is a relationship between two independent contractors. Their rights are determined by the franchise agreement. A franchise then is not a separate business entity, but is a business relationship between two separate business organizations such as a sole proprietorship, a corporation, or a partnership. The relationship between the franchisor and franchisee is controlled by the franchise contract. A corporation, sole proprietorship, or partnership may own the franchise contract or may be the entity entering into the franchise contract.

What laws govern franchises?

There are laws that restrict termination of some franchises. In some states, prior notice of termination is required. Owners of automobile dealership franchises are protected from termination of their dealerships in bad faith. This protection is provided by the Federal Automobile Dealers Franchise Act.


What are Articles of Incorporation?

Articles of Incorporation are legal documents that establish a new corporation in a specific state. In New Mexico, these articles provide important information about the company, such as its name, purpose, location, and the names of its initial directors and incorporates. They also outline the structure and governance of the corporation, including its stock issuance and voting procedures. These articles need to be filed with the Secretary of State in New Mexico to officially form the corporation and ensure legal recognition. Overall, the Articles of Incorporation are crucial in creating a legal entity that can conduct business and protect the individuals involved in the corporation.


What to Include in Articles of Incorporation

When preparing the Articles of Incorporation in New Mexico, it is important to include key information about your business. This includes the name of the corporation, which should be unique and not the same as any other business. You should also state the purpose of your corporation in a clear and concise manner, describing the type of business activities you plan to engage in. Additionally, you need to specify the registered office and registered agent for your corporation who will receive legal documents on behalf of the company. Furthermore, it is important to include information about the initial number of authorized shares and the names and addresses of the incorporates. By including all of these elements in your Articles of Incorporation, you can ensure that your business is properly registered and recognized by the state of New Mexico.


1. Full Name of Corporation

"ABC Tech Solutions, operating in the beautiful state of New Mexico, is a technology corporation specializing in providing innovative solutions to businesses. With our team of skilled professionals, we work tirelessly to develop cutting-edge software and hardware solutions tailored to meet the unique needs of our clients. Our commitment to excellence and customer satisfaction drives us to deliver top-notch products and services that help businesses thrive in today's competitive market. At ABC Tech Solutions, we are proud to be a part of the New Mexico business community and contribute to its growth and success."


2. Principal Place of Business

The principal place of business refers to the main location where a company conducts its operations and manages its affairs. In the state of New Mexico, this means the primary office or facility where a business is located, and where its key operations take place. It is the central hub from which the business's activities are coordinated and directed. The principal place of business is crucial for legal, tax, and administrative purposes, as it determines the jurisdiction and regulations that apply to the company in New Mexico.


12. Limitation of Director’s Liability

In New Mexico, there are limitations on the liability of company directors. This means that directors of a company are not personally responsible for all the debts and obligations of the company. They have a certain level of protection against legal actions and financial risks. However, it's important to note that there are certain situations where directors can still be held liable, such as instances of fraud or intentional misconduct. So while directors enjoy some protection, they must still fulfill their responsibilities and act in the best interests of the company to avoid potential liability.