FRANCHISE LAW
Franchise Law Articles
Plain-English analysis of FDD reviews, franchise agreements, exit strategy, and ongoing counsel for franchisees and franchisors.
477 articles
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 …
FDD Item 19: Financial Performance Representations
A financial performance representation is any claim a franchisor makes about the sales, income, or profits you might earn — and under the FTC Franchise Rule, if …
Financing Provisions in a Franchise Agreement
The financing provisions in a franchise agreement are the clauses that set what the franchisee pays, when they pay it, and what happens if they don’t. …
Franchise Advertising Fund Fees: What to Know
A franchise advertising fund is a system-wide marketing pool that franchisees pay into — usually a percentage of gross sales — and that the franchisor controls. …
Franchise Agreement Early Termination: What to Know
Early termination provisions set the grounds, notice, and cure rights that govern when a franchise can end before its term — and for franchisees, the …
Franchise Agreement Indemnification Clauses Explained
An indemnification clause in a franchise agreement is the franchisee’s promise to cover the franchisor’s losses — legal costs, settlements, and …
Franchise Agreement Key Terms: What to Check First
The terms that decide whether a franchise deal is worth signing are the term and renewal, the fee structure, the territory, the transfer and termination rights, …
