N.J. Stat. » Title 56 — TRADE NAMES, TRADE-MARKS AND UNFAIR TRADE PRACTICES
New Jersey Statutes

N.J. Stat. § 56:10-7.3 (2026)

Prohibited conditions, terms of franchise

✓ current as of May 2026
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2. a. It shall be a violation of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-1 et seq.) for a motor vehicle franchisor to require a motor vehicle franchisee to agree to a term or condition in a franchise, or in any lease or agreement ancillary or collateral to a franchise, which:

(1) Requires the motor vehicle franchisee to waive trial by jury in actions involving the motor vehicle franchisor; or

(2) Specifies the jurisdictions, venues or tribunals in which disputes arising with respect to the franchise, lease or agreement shall or shall not be submitted for resolution or otherwise prohibits a motor vehicle franchisee from bringing an action in a particular forum otherwise available under the law of this State; or

(3) Requires that disputes between the motor vehicle franchisor and motor vehicle franchisee be submitted to arbitration or to any other binding alternate dispute resolution procedure; provided, however, that any franchise, lease or agreement may authorize the submission of a dispute to arbitration or to binding alternate dispute resolution if the motor vehicle franchisor and motor vehicle franchisee voluntarily agree to submit the dispute to arbitration or binding alternate dispute resolution at the time the dispute arises.

b. For the purposes of this section, it shall be presumed that a motor vehicle franchisee has been required to agree to a term or condition in violation of this section as a condition of the offer, grant or renewal of a franchise or of any lease or agreement ancillary or collateral to a franchise, if the motor vehicle franchisee, at the time of the offer, grant or renewal of the franchise, lease or agreement is not offered the option of an identical franchise, lease or agreement without the term or condition proscribed by this section.

c. In addition to any remedy provided in the "Franchise Practices Act," any term or condition included in a franchise, or in any lease or agreement ancillary or collateral to a franchise, in violation of this section may be revoked by the motor vehicle franchisee by written notice to the motor vehicle franchisor within 60 days of the motor vehicle franchisee's receipt of the fully executed franchise, lease or agreement. This revocation shall not otherwise affect the validity, effectiveness or enforceability of the franchise, lease or agreement.

Notes of Decisions
Cited in 4 cases (2 in the last 5 years), 1997–2025 · leading case: Cent. Jersey Freightliner, Inc. v. Freightliner Corp., 987 F. Supp. 289 (D.N.J. 1997).
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Cent. Jersey Freightliner, Inc. v. Freightliner Corp., 987 F. Supp. 289 (D.N.J. 1997). · cites it 14× “Plaintiffs have raised NJFPA § 56:10-7.3 as a bar to arbitration. Defendant does not address § 56:10-7.”
David F. Calabotta Vs. Phibro Animal Health Corp. (l-1979-17, Bergen Cnty. & Statewide), 213 A.3d 210 (N.J. Super. Ct. App. Div. 2019). “, New Jersey Franchise Practices Act, N.J.S.A. 56:10-7.3(a)(2) (mandating that franchisors cannot require franchisees to waive their rights "otherwise available under the laws of this State"); Uniform Commercial Code, N.”
Charles Adler v. Gruma Corp., 135 F.4th 55 (3d Cir. 2025). “N.J. Stat. § 56:10-7.3(a)(3) (“It shall be a violation of the [Act] for a motor vehicle franchisor to require a motor vehicle franchisee to agree to a term or condition in a franchise .”
Mall Chevrolet, Inc. v. Gen. Motors LLC (D.N.J. 2021). “§ 56:10-7.3 . However, the Dealer Agreement in this case does not contain a provision requiring Mall to waive trial by jury.”
N.J. Stat. § 56:10-7.3(a)(2): 1 case
David F. Calabotta Vs. Phibro Animal Health Corp. (l-1979-17, Bergen Cnty. & Statewide), 213 A.3d 210 (N.J. Super. Ct. App. Div. 2019). “, New Jersey Franchise Practices Act, N.J.S.A. 56:10-7.3(a)(2) (mandating that franchisors cannot require franchisees to waive their rights "otherwise available under the laws of this State"); Uniform Commercial Code, N.”
N.J. Stat. § 56:10-7.3(a)(3): 1 case
Charles Adler v. Gruma Corp., 135 F.4th 55 (3d Cir. 2025). “N.J. Stat. § 56:10-7.3(a)(3) (“It shall be a violation of the [Act] for a motor vehicle franchisor to require a motor vehicle franchisee to agree to a term or condition in a franchise .”
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