Kansas Franchise Forms - Kansas Franchise Law

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Kansas 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 outline the key details about a company, its structure, and its purpose. They serve as the foundation for forming a corporation and must be filed with the state's Secretary of State office. In Kansas, the process begins by preparing the articles, which generally include the company's name, registered agent, business purpose, capital stock details, and the initial directors and officers. It is important to ensure that the articles comply with state laws and contain accurate information. Once the articles are completed, they are submitted to the Kansas Secretary of State along with the required filing fee.


What to Include in Articles of Incorporation

Articles of Incorporation in Kansas should include various important details to officially establish a corporation. Firstly, the name of the corporation needs to be picked carefully and should end with "Corporation," "Incorporated," or an abbreviation like "Corp." or "Inc." It is crucial to provide the corporation's registered office address, which must be a physical location in Kansas. Additionally, the name and address of the registered agent responsible for receiving legal documents must be provided. Kansas law requires specifying the corporation's purpose, whether it is to engage in any lawful activity or restricted to a specific purpose. Finally, the Articles of Incorporation should state the number of shares the corporation is authorized to issue, the par value, and the frequency of shareholder meetings. Remember, these are just the basics, and consulting with legal professionals may be advisable to draft comprehensive and accurate Articles of Incorporation.


1. Full Name of Corporation

The full name of the corporation is [Full Name of Corporation] and it is located in the state of Kansas. This means that the corporation's headquarters or main office is based in Kansas.


2. Principal Place of Business

The principal place of business refers to the main location where a company carries out its day-to-day operations and conducts its core activities. In the case of a company operating in Kansas, this means the primary physical address or office where most of the business functions take place. It is the central hub where employees, managers, and stakeholders come together to collaborate, manage resources, and drive the company's objectives. The principal place of business is crucial for legal and regulatory purposes, as it determines the jurisdiction and applicable laws that govern the company's operations in Kansas.


12. Limitation of Director’s Liability

In Kansas, there is a limitation on the liability of directors. This means that directors of a company are not personally responsible for any losses or debts incurred by the company. Their liability is limited to the extent of their investment in the company. This protection allows directors to take risks and make decisions without fearing personal financial ruin. However, it is important for directors to act in good faith and in the best interests of the company, as engaging in illegal or fraudulent activities could still result in personal liability. Overall, the limitation of director's liability in Kansas provides a level of security and encourages entrepreneurship and business development in the state.