In an attempt to minimize such costly dysfunctional
conflict and to safeguard the interests of individual franchisees,
15 states now require franchisors to register with
state regulators before offering franchise opportunities.
Furthermore, 22 states have enacted laws that require franchisors
to provide "good cause for termination" of their
franchisees. Although these laws are long-standing (both
were enacted in 1974), such regulation of franchising has
always been controversial. Whereas supporters of regulation
laud the transparency and the "franchisee day in court"
elicited by such laws (Benoliel 2009), its detractors cite the
high cost of compliance and the additional burden