Tennessee Franchise Forms - Tn What Is Franchise
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Tennessee Franchise Forms FAQ Tennessee Franchise File
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.
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What are Articles of Incorporation?
Articles of Incorporation are legal documents that formally establish a corporation and outline its structure, purpose, and regulations. In Tennessee, these articles need to be filed with the Secretary of State's office to form a corporation. They typically include important details such as the corporation's name, its location, the names of its directors and officers, and the types of business activities it will undertake. Articles of Incorporation also provide the corporation with legal protection and recognition as a separate entity from its owners or shareholders. Overall, they are essential in creating a solid foundation for any corporation to operate within the state of Tennessee.
What to Include in Articles of Incorporation
When creating Articles of Incorporation in Tennessee, it is important to include specific information about your new corporation. You should clearly state the name of your corporation, which must end with words like "Corporation," "Company," or "Incorporated." Additionally, you should mention the purpose of your corporation, which describes the type of business you will be conducting. It's also crucial to provide the registered agent's name and address, as they will be the point of contact for any legal matters. Furthermore, you must specify the number of shares your corporation is authorized to issue and outline the classes of stock, if applicable. Finally, you should mention the initial directors' names and addresses. By including these essential details in your Articles of Incorporation, you'll be on the right track to legally and effectively establish your corporation in Tennessee.
1. Full Name of Corporation
The full name of the corporation operating in Tennessee is a combination of words that uniquely identifies the organization. It is a collection of letters that, when put together, forms the distinctive title of the business. The phrase "in Tennessee" indicates the geographical location where the corporation is located and operates its activities. By including this phrase, it clarifies that the corporation is specifically based in the state of Tennessee and is involved in its local business environment.
2. Principal Place of Business
The Principal Place of Business refers to the main location or headquarters of a business. In Tennessee, this term specifically refers to the primary physical address where a company conducts its key operations and makes important business decisions. It is the central hub from where the company manages its various activities, such as manufacturing, sales, and administration. Having a well-established Principal Place of Business contributes to a company's credibility and serves as a focal point for its employees, customers, and stakeholders.
12. Limitation of Director’s Liability
In Tennessee, there are limitations on the liability of directors. This means that directors of a company are not personally responsible for all the actions or decisions made by the company. Instead, their liability is limited to specific situations, such as cases involving fraud, misconduct, or unlawful acts. Directors are generally protected from personal liability if they act in good faith, exercise their duties with reasonable care, and make informed decisions based on the best interests of the company. However, it is important to note that these limitations may not apply if a director breaches their fiduciary duties or engages in activities that harm the company or its stakeholders.
