Washington Franchise Forms - Washington Franchise Business

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Washington 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 the existence of a corporation. In simpler terms, they are like birth certificates for businesses. In Washington, the process involves submitting these articles to the Secretary of State's office. These articles typically include important information such as the company's name, purpose, location, and the number and types of shares issued. Once approved, the corporation becomes official and can conduct business in Washington state.


What to Include in Articles of Incorporation

Articles of Incorporation are legal documents that are required to establish a corporation in the state of Washington. They serve as the foundation of your business and contain important information about your company's structure and operations. These documents should include basic details such as your corporation's name, address, and purpose. You will also need to include information about the number and types of shares the corporation is authorized to issue, as well as the names and addresses of the initial directors. It is essential to include the purpose and activities of your corporation, ensuring they align with the laws and regulations of Washington. By including these necessary details in your Articles of Incorporation, you will be taking the important steps towards establishing your corporation and setting up your business legally in the state of Washington.


1. Full Name of Corporation

The name of the corporation is XYZ Company Inc. and it is based in Washington.


2. Principal Place of Business

The principal place of business refers to the main location where a company operates and carries out its activities. In Washington, this refers to the primary business location within the state of Washington. It is the central hub where the company's core operations take place, such as administration, management, and decision-making. It is important for businesses to establish a principal place of business in Washington to ensure compliance with local laws and regulations, as well as to build a strong presence in the state's market.


12. Limitation of Director’s Liability

In Washington, there are certain limitations on the liability of directors. This means that directors, who are individuals responsible for managing and making decisions on behalf of a company, are not held personally responsible for the debts and obligations of the company in most cases. Instead, the company itself is seen as a separate legal entity. This limitation helps protect directors from being held financially liable for the actions or mistakes of the company, as long as their actions were conducted in good faith and within their legal authority. However, it is important to note that this protection does not apply if the directors act fraudulently or improperly, as they can still be held personally liable in such cases.