Florida Statute 817.416 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XLVI
CRIMES

Chapter 817
FRAUDULENT PRACTICES

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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.

F.S. 817.416 on Google Scholar

F.S. 817.416 on Casetext

Amendments to 817.416

Arrestable Offenses / Crimes under Fla. Stat. 817.416

Level: Degree
Misdemeanor/Felony: First/Second/Third

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

Annotations, Discussions, Cases:

Cases Citing Statute 817.416

Total Results: 18

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

Court: District Court of Appeal of Florida | Date Filed: 2012-01-13

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

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

KC Leisure, Inc. v. Haber

Court: District Court of Appeal of Florida | Date Filed: 2008-01-25

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

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

Thorpe v. Gelbwaks

Court: District Court of Appeal of Florida | Date Filed: 2007-03-16

Citation: 953 So. 2d 606, 2007 WL 776611

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

Viets v. AREI

Court: District Court of Appeal of Florida | Date Filed: 2006-03-22

Citation: 922 So. 2d 1090, 2006 WL 708431

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

Voicestream Wireless v. US Communications

Court: District Court of Appeal of Florida | Date Filed: 2005-08-24

Citation: 912 So. 2d 34, 2005 WL 2016838

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

Font v. STANLEY STEEMER INTERNATIONAL, INC.

Court: District Court of Appeal of Florida | Date Filed: 2003-07-25

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

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

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

Court: District Court of Appeal of Florida | Date Filed: 2003-04-30

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

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

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

Court: District Court of Appeal of Florida | Date Filed: 2001-11-14

Citation: 805 So. 2d 941, 2001 WL 1409448

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

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

Court: District Court of Appeal of Florida | Date Filed: 2000-11-01

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

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

Alphagraphics Franchising, Inc. v. Stebbins

Court: District Court of Appeal of Florida | Date Filed: 1993-05-05

Citation: 617 So. 2d 463, 1993 WL 140097

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

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

Court: District Court of Appeal of Florida | Date Filed: 1989-05-12

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

Snippet: of the complaint alleged violation of Section 817.416, Florida Statutes (the Florida Franchise Fraud

Day v. Le-Jo Enterprises, Inc.

Court: District Court of Appeal of Florida | Date Filed: 1988-02-09

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

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

Doctors Associates, Inc. v. McCrory

Court: District Court of Appeal of Florida | Date Filed: 1987-01-21

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

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

PHYSICIANS WEIGHT LOSS CENTERS. v. Payne

Court: District Court of Appeal of Florida | Date Filed: 1984-12-14

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

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

Miami Lincoln Mercury v. Kramer

Court: District Court of Appeal of Florida | Date Filed: 1981-05-19

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

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

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

Court: District Court of Appeal of Florida | Date Filed: 1980-04-10

Citation: 382 So. 2d 789

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

Chicken Unlimited, Inc. v. Bockover

Court: District Court of Appeal of Florida | Date Filed: 1979-08-22

Citation: 374 So. 2d 96

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

33 Flavors of Florida, Inc. v. Larsen

Court: District Court of Appeal of Florida | Date Filed: 1975-02-05

Citation: 308 So. 2d 591

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