FRANCHISE LAW
Franchise Law Articles
Plain-English analysis of FDD reviews, franchise agreements, exit strategy, and ongoing counsel for franchisees and franchisors.
477 articles
If Your Franchisor Fails or Is Sold: Franchisee Rights
If your franchisor goes out of business, your franchise agreement does not automatically vanish — and if your franchisor is sold, your agreement generally …
Is Your Brand Ready to Franchise Your Business?
Your brand is ready to franchise when your trademark is federally registered, your other intellectual property is protected, and your brand standards are …
Item 19 Financial Performance Representations Guide
If your franchise makes financial performance representations, the legal rules are narrow and specific: any claim about a franchise’s sales, income, or …
Joint Employer Liability for Franchisors
Joint-employer liability affects a franchisor by making the brand a co-employer of its franchisees’ workers — and therefore liable for those …
Legal Requirements to Franchise Your Business
Before you can legally franchise your business, you must prepare a Franchise Disclosure Document (FDD) that complies with the FTC Franchise Rule, deliver it on …
License vs. Franchise: Are You Already a Franchisor?
Converting a license system into a franchise usually means one of two things: you have decided to franchise on purpose, or you have discovered that your …
Multi-Unit Franchising: Pros, Cons, and How to Decide
Multi-unit franchising makes sense when you have the capital, the management depth, and the appetite to commit to a fixed opening schedule — and it backfires …
Multistate and Roll-Up FDDs, Explained
A multistate or roll-up FDD is a single Franchise Disclosure Document built to be used in every state at once, with state-specific addenda bolted on instead of …
Negotiation Skills Every Franchise Broker Needs
A franchise broker’s whole value lives in the space between a franchisor and a prospective franchisee — and bridging that space is a negotiation. The best …
State Franchise Laws: Registration and Relationships
State franchise laws come in two distinct kinds: registration/disclosure laws that govern how a franchise is sold, and relationship laws that govern how it can …
The Real Costs of Buying a Franchise
The real cost of buying a franchise is far more than the initial franchise fee — it is that fee plus ongoing royalties, advertising contributions, equipment, …
Updating a Franchise Agreement for New Technology
A franchise agreement accommodates new technology and industry change mainly through standards that the franchisor can update over time — rather than by naming …
What an FDD Is and Why It Matters Before You Sign
A Franchise Disclosure Document (FDD) is the single most important document you will read before buying a franchise: it is the federally mandated disclosure a …
What Franchisors Sue Franchisees For: Claims & Remedies
Franchisors sue franchisees for a short, predictable list of things: unpaid royalties and fees, continued use of the trademarks after termination, breach of …
What Happens After Franchise Termination
After a franchise is terminated, the agreement does not simply end — a set of post-termination obligations takes over, and they determine your real cost of …
What Is the FTC Franchise Rule? A Plain-English Guide
The FTC Franchise Rule is the federal regulation — 16 CFR Part 436 — that requires a franchisor to give you a Franchise Disclosure Document (FDD) at least 14 …
What the FDD Doesn't Tell You About a Franchise
The FDD tells you a great deal about a franchise — fees, litigation, obligations — but it does not tell you whether the business will actually work for you, and …
What Your FDD Really Says: Plain-English Guide
Your franchise disclosure document (FDD) is a 23-item legal disclosure that tells you, in dense and often deliberately formal language, exactly what you are …
Why Your Franchise Agreement Needs a Legal Review
A franchise agreement needs a legal review because it is a long-term, franchisor-drafted contract whose costliest terms — the personal guaranty, territory …
Adapting Your Franchise Agreement to Market Trends
A franchise agreement written for the market five years ago will not protect you in today’s — but you adapt it through new agreements and reserved rights, …
