Legal Question in Business Law in New Jersey

Re: Is contract signed only by one party legal?

Basic elements for a valid contract are: offer, acceptance and consideration. It appears the offer was made to allow to you apply for the franchise rights, and was accepted by your signing the contract. The consideration was the fees to be paid. If fees were commenced to be paid, it appears there is a valid contract, even with only your signature, unless there were changes in the contract, in which case your returning the contract could be interpreted as being a counter-offer, not accepted by the other party, since they did not sign it. There may also be defenses if it is a valid contract - did they have any requirements to assist you and failed to do so, etc. Plys, there may be SEC questions, as a franchise is sometimes considered a sale of a security. There are laws in NJ to protect franchisees that may come into play also. What state law controls the contract (NY or NJ or some other state)? There may also be Uniform Commercial Code implications (contracts to be performed in one year or more must be in writing - so their failure to sign may come into play. I suggest you contact an attorney familiar with franchises to review the matter.

Re: Is contract signed only by one party legal?

May be governed by the terms of the contract itself, or by either NY or NJ state law; though, I strongly suspect that the contract is enforceable against any signatory, and you are a signatory.