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Florida Statute 817.416 - Full Text and Legal Analysis
Florida Statute 817.416 | Lawyer Caselaw & Research
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The 2025 Florida Statutes

Title XLVI
CRIMES
Chapter 817
FRAUDULENT PRACTICES
View Entire Chapter
F.S. 817.416
817.416 Franchises and distributorships; misrepresentations.
(1) DEFINITIONS.For the purpose of this section:
(a) The term “person” means an individual, partnership, corporation, association, or other entity doing business in Florida.
(b) The term “franchise or distributorship” means a contract or agreement, either expressed or implied, whether oral or written, between two or more persons:
1. Wherein a commercial relationship of definite duration or continuing indefinite duration is involved;
2. Wherein one party, hereinafter called the “franchisee,” is granted the right to offer, sell, and distribute goods or services manufactured, processed, distributed or, in the case of services, organized and directed by another party;
3. Wherein the franchisee as an independent business constitutes a component of franchisor’s distribution system; and
4. Wherein the operation of the franchisee’s business franchise is substantially reliant on franchisors for the basic supply of goods.
(c) The term “goods” means any article or thing without limitation, or any part of such article or thing, including any article or thing used or consumed by a franchisee in rendering a service established, organized, directed, or approved by a franchisor.
(2) DECLARATIONS.
(a) It is unlawful, when selling or establishing a franchise or distributorship, for any person:
1. Intentionally to misrepresent the prospects or chances for success of a proposed or existing franchise or distributorship;
2. Intentionally to misrepresent, by failure to disclose or otherwise, the known required total investment for such franchise or distributorship; or
3. Intentionally to misrepresent or fail to disclose efforts to sell or establish more franchises or distributorships than is reasonable to expect the market or market area for the particular franchise or distributorship to sustain.
(b) The execution or carrying out of a scheme, plan, or corporate organization which violates any of the provisions of this section, if knowledge or intent be proved, shall be a misdemeanor of the second degree, punishable as provided in ss. 775.082 and 775.083.
(3) CIVIL PROVISIONS.Any person, who shows in a civil court of law a violation of this section may receive a judgment for all moneys invested in such franchise or distributorship. Upon such a showing, the court may award any person bringing said action reasonable attorney’s fees and shall award such person reasonable costs incurred in bringing the action, and execution shall thereupon issue.
(4) INJUNCTIONS.The Department of Legal Affairs, or the Department of Legal Affairs and the Department of Agriculture and Consumer Services jointly, may sue in behalf of the people of this state for injunctive relief against franchise or distributorship plans or activities in violation of paragraph (2)(a).
History.ss. 1, 2, 2A, 3, 4, ch. 71-61.

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Amendments to 817.416


Annotations, Discussions, Cases:

Arrestable Offenses / Crimes under Fla. Stat. 817.416
Level: Degree
Misdemeanor/Felony: First/Second/Third

S817.416 - FRAUD - INTENTIONALLY MISREPRESENT FRANCHISE PROSPECT - M: S

Cases Citing Statute 817.416

Total Results: 33

Vick Griffin, D/B/A Griffin Construction Co. v. Swim-Tech Corporation, a Foreign Corporation

722 F.2d 677, 38 Fed. R. Serv. 2d 576, 1984 U.S. App. LEXIS 26626

Court of Appeals for the Eleventh Circuit | Filed: Jan 9, 1984 | Docket: 652802

Cited 256 times | Published

Franchises and Distributorships Act, Fla.Stat. § 817.416 (1979) and Florida’s Unfair and Deceptive Trade

Barnes v. Burger King Corp.

932 F. Supp. 1420, 1996 U.S. Dist. LEXIS 14908, 1996 WL 272350

District Court, S.D. Florida | Filed: Mar 29, 1996 | Docket: 2485569

Cited 68 times | Published

Barnes alleges Burger King violated Fla.Stat. § 817.416(2)(a) "by purposefully misrepresenting material

Burger King Corp. v. Austin

805 F. Supp. 1007, 1992 U.S. Dist. LEXIS 16273, 1992 WL 309059

District Court, S.D. Florida | Filed: Oct 9, 1992 | Docket: 241770

Cited 38 times | Published

breached the Florida Franchise Act (Fla. Stat. § 817.416) by intentionally misrepresenting *1022 material

Hall v. Burger King Corp.

912 F. Supp. 1509, 1995 U.S. Dist. LEXIS 20589, 1995 WL 762146

District Court, S.D. Florida | Filed: Nov 13, 1995 | Docket: 221027

Cited 37 times | Published

relief under the Florida Franchise Act, Fla. Stat. § 817.416; Count VIII seeks rescission of their Franchise

Viets v. AREI

922 So. 2d 1090, 2006 WL 708431

District Court of Appeal of Florida | Filed: Mar 22, 2006 | Docket: 1282631

Cited 36 times | Published

rescission, and statutory restitution under section 817.416(3), Florida Statutes. This statute provides

Amerisure Ins. Co. v. GOLD COAST MARINE DIST., INC.

771 So. 2d 579, 2000 Fla. App. LEXIS 13921, 2000 WL 1629442

District Court of Appeal of Florida | Filed: Nov 1, 2000 | Docket: 2450428

Cited 27 times | Published

Restraint of Trade laws (Count VII), violation of section 817.416, Florida Statutes (1993), criminalizing fraudulent

KC Leisure, Inc. v. Haber

972 So. 2d 1069, 2008 Fla. App. LEXIS 776, 2008 WL 195107

District Court of Appeal of Florida | Filed: Jan 25, 2008 | Docket: 1650079

Cited 22 times | Published

plaintiffs." Id. at 734-35 (citations omitted). Section 817.416(2), Florida Statutes (2005), reads in pertinent

Voicestream Wireless v. US Communications

912 So. 2d 34, 2005 WL 2016838

District Court of Appeal of Florida | Filed: Aug 24, 2005 | Docket: 1755554

Cited 21 times | Published

for violation of the Florida Franchise Act, section 817.416, Florida Statutes (2000), which provides that

Burger King Corp. v. Holder

844 F. Supp. 1528, 1993 U.S. Dist. LEXIS 19838, 1993 WL 597404

District Court, S.D. Florida | Filed: Feb 5, 1993 | Docket: 1064658

Cited 21 times | Published

the Florida Franchise Act ("FFA"), Fla.Stat. § 817.416, must be dismissed because all of Holder's franchises

Beaver Coaches, Inc. v. REVELS NAT. RV SALES, INC.

543 So. 2d 359, 14 Fla. L. Weekly 1162, 1989 Fla. App. LEXIS 2716, 1989 WL 49624

District Court of Appeal of Florida | Filed: May 12, 1989 | Docket: 1729836

Cited 19 times | Published

Count II of the complaint alleged violation of Section 817.416, Florida Statutes (the Florida Franchise Fraud

Schubot v. McDonalds Corp.

757 F. Supp. 1351, 1990 U.S. Dist. LEXIS 18129, 1990 WL 264487

District Court, S.D. Florida | Filed: Dec 26, 1990 | Docket: 1295534

Cited 17 times | Published

the Court is directed towards Florida Statute § 817.416, a criminal statute, which prohibits fraudulent

SIG, Inc. v. AT & T Digital Life, Inc.

971 F. Supp. 2d 1178, 2013 WL 5005730, 2013 U.S. Dist. LEXIS 130538

District Court, S.D. Florida | Filed: Sep 12, 2013 | Docket: 65994280

Cited 15 times | Published

Defendants violated Florida’s Franchise Act, Section 817.416, Fla. Stat. Id. ¶¶ 156-163. Count VII avers

Font v. STANLEY STEEMER INTERNATIONAL, INC.

849 So. 2d 1214, 2003 Fla. App. LEXIS 11142, 2003 WL 21713707

District Court of Appeal of Florida | Filed: Jul 25, 2003 | Docket: 1509336

Cited 15 times | Published

clearly has an independent aspect to it. See, e.g., § 817.416(1)(b), Fla. Stat. Here, for example, Gellner Enterprises

Interstate Pipe Maintenance, Inc., Etc. v. Fmc Corporation, Etc.

775 F.2d 1495, 1985 U.S. App. LEXIS 23897

Court of Appeals for the Eleventh Circuit | Filed: Nov 13, 1985 | Docket: 503555

Cited 15 times | Published

court seeking relief under Florida Statute section 817.416. Defendant removed to district court where

Checkers Drive-In Restaurants, Inc. v. Tampa Checkmate Food Services, Inc.

805 So. 2d 941, 2001 WL 1409448

District Court of Appeal of Florida | Filed: Nov 14, 2001 | Docket: 434749

Cited 14 times | Published

claim for violation of the Florida Franchise Act. § 817.416, Fla. Stat. (1993). This is a claim that can only

Travelodge Intern., Inc. v. Eastern Inns, Inc.

382 So. 2d 789

District Court of Appeal of Florida | Filed: Apr 10, 1980 | Docket: 1255023

Cited 11 times | Published

reversal primarily upon its contentions (1) that Section 817.416(2)(a)(1), Florida Statutes, providing for recovery

Chicken Unlimited, Inc. v. Bockover

374 So. 2d 96

District Court of Appeal of Florida | Filed: Aug 22, 1979 | Docket: 430697

Cited 11 times | Published

in the sale of a franchise as prohibited by Section 817.416, Florida Statutes (1977), and (3) common law

Perdido Key Island Resort Development, L.L.P. v. Regions Bank

102 So. 3d 1, 2012 Fla. App. LEXIS 356, 2012 WL 104464

District Court of Appeal of Florida | Filed: Jan 13, 2012 | Docket: 60226513

Cited 8 times | Published

violation of the Florida Franchise Fraud Act, section 817.416(2)(a)3, Florida Statutes. The arbitration provision

Alphagraphics Franchising, Inc. v. Stebbins

617 So. 2d 463, 1993 WL 140097

District Court of Appeal of Florida | Filed: May 5, 1993 | Docket: 457878

Cited 7 times | Published

559.80-559.815, Fla. Stat. (1991). [12] See § 817.416, Fla. Stat. (1991). [13] Under Prima Paint, the

PHYSICIANS WEIGHT LOSS CENTERS. v. Payne

461 So. 2d 977, 9 Fla. L. Weekly 2638, 1984 Fla. App. LEXIS 16279

District Court of Appeal of Florida | Filed: Dec 14, 1984 | Docket: 2517405

Cited 5 times | Published

Statutes. Count three sought damages pursuant to § 817.416(3), and count four sought rescission of the franchise

Thorpe v. Gelbwaks

953 So. 2d 606, 2007 WL 776611

District Court of Appeal of Florida | Filed: Mar 16, 2007 | Docket: 1337858

Cited 4 times | Published

Stat. [3] §§ 501.201-.213, Fla. Stat. [4] § 817.416, Fla. Stat. [5] The franchise operation involved

Miami Lincoln Mercury v. Kramer

399 So. 2d 1003, 1981 Fla. App. LEXIS 19871

District Court of Appeal of Florida | Filed: May 19, 1981 | Docket: 1652436

Cited 4 times | Published

criminal acts and are punishable as such. Section 817.416, supra, prohibits misrepresentations in the

Davis v. McDonald's Corp.

44 F. Supp. 2d 1251, 39 U.C.C. Rep. Serv. 2d (West) 985, 1998 U.S. Dist. LEXIS 22313, 1998 WL 1034912

District Court, N.D. Florida | Filed: Mar 30, 1998 | Docket: 2433698

Cited 3 times | Published

misrepresentation; (5) violation of the Florida Franchise Act, § 817.416(2)(a), Florida Statutes; (6) promissory estoppel;

Day v. Le-Jo Enterprises, Inc.

521 So. 2d 175, 13 Fla. L. Weekly 410, 1988 Fla. App. LEXIS 433, 1988 WL 8109

District Court of Appeal of Florida | Filed: Feb 9, 1988 | Docket: 1348340

Cited 3 times | Published

motion to amend their counterclaim pursuant to section 817.416, Florida Statutes (1981). Appellants argue

Cluck-U Chicken, Inc. v. Cluck-U Corp.

358 F. Supp. 3d 1295

District Court, M.D. Florida | Filed: Jun 6, 2017 | Docket: 64322637

Cited 2 times | Published

violation of the Florida Franchise Act, Fla. Stat. § 817.416 (count two); violation of the Florida Sale of

Barnes v. Burger King Corp.

932 F. Supp. 1441, 1996 U.S. Dist. LEXIS 14309, 1996 WL 403272

District Court, S.D. Florida | Filed: May 24, 1996 | Docket: 1604010

Cited 2 times | Published

provision of the Florida Franchise Act, Fla. Stat. § 817.416(3), provides, in pertinent part: "Any person,

Hetrick v. IDEAL IMAGE DEVELOPMENT CORP.

758 F. Supp. 2d 1220, 2010 U.S. Dist. LEXIS 135065, 2010 WL 5317363

District Court, M.D. Florida | Filed: Dec 21, 2010 | Docket: 2344033

Cited 1 times | Published

to Florida's Franchise Act, Florida Statute Section 817.416. (Doc. # 2). Among other things, the Hetricks

Doctors Associates, Inc. v. McCrory

501 So. 2d 126, 12 Fla. L. Weekly 321

District Court of Appeal of Florida | Filed: Jan 21, 1987 | Docket: 692156

Cited 1 times | Published

for success of a franchise, in violation of section 817.416, Florida Statutes (1983). Count III alleged

Doctors Associates, Inc. v. McCrory

501 So. 2d 126, 12 Fla. L. Weekly 321

District Court of Appeal of Florida | Filed: Jan 21, 1987 | Docket: 692156

Cited 1 times | Published

for success of a franchise, in violation of section 817.416, Florida Statutes (1983). Count III alleged

Boca Mara Properties, Inc. v. International Dairy Queen, Inc.

732 F.2d 1550, 1984 U.S. App. LEXIS 22114

Court of Appeals for the Eleventh Circuit | Filed: May 29, 1984 | Docket: 433777

Cited 1 times | Published

did not sell the business to plaintiffs. Section 817.416(2)(a) of the Act provides:

33 Flavors of Florida, Inc. v. Larsen

308 So. 2d 591

District Court of Appeal of Florida | Filed: Feb 5, 1975 | Docket: 1251190

Cited 1 times | Published

briefly on the one point meriting discussion. Section 817.416, F.S. 1971, provides in relevant part as follows:

Cousins Restaurant Associates ex rel. Cousins Management Corp. v. TGI Friday's, Inc.

843 So. 2d 980, 2003 Fla. App. LEXIS 6172, 2003 WL 1969223

District Court of Appeal of Florida | Filed: Apr 30, 2003 | Docket: 64822539

Published

good faith and fair dealing, a violation of section 817.416(2)(a), Florida Statutes (Supp.1996), and fraud

Boca Mara Properties, Inc. v. International Dairy Queen, Inc.

732 F.2d 1550

Court of Appeals for the Eleventh Circuit | Filed: May 29, 1984 | Docket: 66197264

Published

under the Florida Franchise Act, Fla.Stat. Ann. § 817.416: first, plaintiffs’ store was not a “franchise”