FRANCHISE LAW
Franchise Law Articles
Plain-English analysis of FDD reviews, franchise agreements, exit strategy, and ongoing counsel for franchisees and franchisors.
483 articles
Updating Your Franchise Agreement for Technology
Update your franchise agreement for technology by addressing four things directly: who owns customer data, how online and delivery sales affect territory, what …
Using Data and Analytics to Grow a Franchise
A franchisor uses data and analytics to grow by turning the numbers every unit already generates — sales, customer behavior, operations, and marketing response …
Using Your Franchise Agreement to Attract Franchisees
Your franchise agreement is a recruiting tool — but a legal one, not a brochure. The terms you offer prospects, and the way you present them, are governed by …
What Exit Strategy Should I Have for My Franchise?
Your franchise exit strategy comes down to four realistic options: sell the business to an approved buyer, transfer it to a family member or partner, let the …
What Insurance Does a Franchisor Need?
A franchisor needs layered coverage built around one core risk: you can be sued for things that happen at units you do not operate. The essential policies are …
What It Costs to Franchise Your Business
Franchising your business usually costs a franchisor $25,000 to $100,000 in the first year, most of it legal and compliance work to build a Franchise Disclosure …
What to Know Before Buying a Franchise
Buying a franchise means buying a proven system and a brand — but also signing a long-term contract that controls how you operate and limits what you can do, in …
What's in a Franchise Agreement: A Franchisor Guide
The franchise agreement is the binding contract that governs your relationship with each franchisee for the life of the franchise — typically a multi-year term …
When Franchises Fail: Your Rights as a Franchisee
When a franchisor files for bankruptcy, franchisees often assume the worst — that their agreement is void and their investment is gone. The law is more …
Why to Review and Update Your Franchise Agreement
A franchisor should review and update the franchise agreement and FDD on a fixed annual schedule — and amend them sooner whenever a material change occurs — …
Arbitration Clauses in Franchise Agreements
An arbitration clause in a franchise agreement requires the franchisor and franchisee to resolve disputes before a private arbitrator instead of in court. Most …
Can a Franchisor Change the Agreement After Signing?
Mostly no — once signed, a franchise agreement is a binding contract, and a franchisor generally cannot unilaterally rewrite negotiated terms like your royalty …
Can You Become a Multi-Unit Franchisee?
Yes — most franchise systems let you operate more than one unit, but the right to expand and the obligation to expand are two different things, and both are …
Collateral in Franchise Financing: What to Know
Collateral is property you pledge to a lender that the lender can seize and sell if you fail to repay a loan. In franchise financing it is usually what stands …
Confidentiality Clauses in Franchise Agreements
A confidentiality clause is the provision in a franchise agreement that legally bars you from disclosing or misusing the franchisor’s confidential …
Cross-Franchising and Co-Branding Explained
Cross-franchising is operating two or more franchise brands together — under one roof, on one site, or through shared marketing — so each brand draws on the …
Does a Franchise Give You a Protected Territory?
A franchise may give you a protected territory, but it rarely gives you a truly exclusive one — and the difference is written into the contract, not promised in …
Evaluating Franchise Opportunities: Cheat Sheet & Scorecard
Evaluating a franchise opportunity comes down to six checks: system health (Item 20 of the Franchise Disclosure Document), unit economics (Items 5–7 and 19), …
Exiting a Franchise Agreement Early: What Happens
Walking away from a franchise before its term ends usually triggers financial and legal consequences — damages for the franchisor’s lost future royalties, …
FDD Explained: A Quick Guide for Franchise Buyers
A Franchise Disclosure Document (FDD) is the federally required disclosure a franchisor must hand you before you buy — a standardized, 23-item document that …
