FRANCHISE LAW
Franchise Law Articles
Plain-English analysis of FDD reviews, franchise agreements, exit strategy, and ongoing counsel for franchisees and franchisors.
477 articles
Franchisee Protection: Rights and Legal Safeguards
Franchisees are protected from unfair franchisor practices by three things working together: the FTC Franchise Rule’s mandatory disclosure, the franchise …
Franchisee Qualification: A Franchisor's Checklist
Franchisee qualification is the franchisor’s process for deciding whether a candidate has the money, the experience, and the character to run a unit well …
Franchisor Liability When a Franchisee Fails
When a franchisee’s business fails, a franchisor’s biggest legal exposures are breach-of-contract and good-faith claims from the failed franchisee, …
Franchisor Obligations to Franchisees Explained
A franchisor’s core obligations come from one place: the franchise agreement. There is no general federal statute that lists what a franchisor must do for …
Franchisors and Online Reviews: What's Legal
A franchisor can legally manage its brand’s online reputation by setting review-response standards in the franchise agreement and responding honestly to …
Future-Proofing Your Franchise Agreement for Law Changes
A franchise agreement adapts to future changes in the law primarily through built-in compliance clauses and the franchisor’s annual disclosure cycle — not …
How a Franchise Agreement Can Be Terminated
A franchise agreement can end in three ways: the franchisor terminates it for cause, the franchisee terminates or walks away, or the term simply expires without …
How a Franchise Agreement Handles a Resale or Transfer
A franchise agreement controls a resale by requiring the franchisor’s prior written consent, setting transfer conditions and fees, and often reserving the …
How Franchise Law Differs From State to State
Franchise law has one federal floor and many state ceilings — the FTC Franchise Rule sets a single nationwide disclosure standard, but a subset of states layer …
How Franchise Non-Compete Clauses Work
A franchise non-compete clause restricts you from running a competing business — during the franchise term and, more importantly, for a set period and area …
How Franchisors Handle Complaints Against Franchisees
When a discrimination or other legal complaint is made against a franchisee, a franchisor typically acts to protect the brand without taking over the …
How Franchisors Legally Enforce Brand Standards
A franchisor enforces brand standards through the franchise agreement and trademark law working together: the agreement makes the operations manual binding and …
How Franchisors Legally Manage Franchisee Competition
A franchisor’s main legal tool for managing competition between franchisees is territorial allocation — assigning each franchisee a defined area and …
How to Build a Compliant Franchise Brokerage
A franchise broker business plan is really a compliance plan — because the things that make a brokerage durable are the same things that keep it legal. Before …
How to Evaluate a Franchise Broker's Performance
A franchise broker sits between a franchisor and prospective franchisees — sourcing candidates for the franchisor, steering prospects toward systems that fit, …
How to Evaluate a Franchisor Before You Buy
To evaluate a franchisor before you buy, work through four questions: is it financially sound, is its legal record clean, are its fees and obligations …
How to Find the Right Franchise for You
The right franchise is the one that fits your budget, your skills, and your tolerance for risk — and whose Franchise Disclosure Document holds up when you read …
How to Franchise Your Business Without Legal Traps
To franchise your business legally, you must turn your operation into a disclosed, documented system: a registered trademark, a Franchise Disclosure Document …
How to Franchise Your Business: The Legal Steps
Franchising your business means licensing your brand, systems, and operating model to independent owners who pay to run their own outlet under your name — and …
How to Terminate a Franchisee: A Franchisor's Guide
Terminating a franchisee legally means three things: you have good cause under the franchise agreement, you give the written notice the agreement and your …
