FRANCHISE LAW
Franchise Law Articles
Plain-English analysis of FDD reviews, franchise agreements, exit strategy, and ongoing counsel for franchisees and franchisors.
477 articles
Franchise Agreement Term and Renewal: How Long It Lasts
A franchise agreement’s term is the fixed number of years you’re licensed to operate the brand — most commonly five to twenty — and at the end of …
Franchise Agreement: What It Is and What It Covers
A franchise agreement is the binding contract that lets you operate a business under someone else’s brand and system in exchange for fees. It grants you a …
Franchise Agreements and Bankruptcy: What Happens
When a franchisor or franchisee files for bankruptcy, the franchise agreement is treated as an “executory contract” under the U.S. Bankruptcy Code — …
Franchise Agreements and Intellectual Property
A franchise agreement gives you a license to use the brand’s intellectual property — it does not transfer ownership of it. That is the foundation of the …
Franchise Agreements: Transfer & Termination Rights
Transfer rights govern how a franchisee can sell or assign the business, and termination rights govern how either party can end the agreement early — and both …
Franchise Compliance: A Franchisor's Checklist
Franchise compliance comes down to two layers of law: the federal FTC Franchise Rule, which governs how you disclose your offering everywhere in the United …
Franchise Costs Breakdown: What It Really Costs
The cost of a franchise is not the franchise fee — that’s just the entry ticket. The real number is your total investment to open plus the ongoing costs …
Franchise Default and Cure Provisions Explained
A default and cure provision is the part of a franchise agreement that defines what counts as a breach and how long you have to fix it before the franchisor can …
Franchise Due Diligence Checklist Before You Buy
Franchise due diligence is the investigation you run before you sign or pay anything, and its single most important resource is already in your hands: the …
Franchise Due Diligence Period: A Buyer's Guide
Your franchise due diligence period is the window between receiving the FDD and signing — and federal law guarantees you at least 14 calendar days of it. Under …
Franchise Encroachment: How Franchisors Manage It
Whether a franchisor can place a new outlet near an existing franchisee — and whether the existing franchisee can do anything about it — is decided almost …
Franchise Glossary: Key Terms for Owners
Franchising has its own vocabulary, and a buyer who understands the terms reads the Franchise Disclosure Document and franchise agreement with far more …
Franchise Indemnification & Liability Clauses
An indemnification clause decides who pays when a third party sues, and in nearly every franchise agreement it runs one way: the franchisee covers the …
Franchise Letter of Intent (LOI): What to Know
A letter of intent (LOI) is a short, mostly non-binding document that outlines the key terms a franchisor and a prospective franchisee expect to put into a …
Franchise Non-Compete Clauses: How to Read Yours
A franchise non-compete clause restricts you from running a competing business — during the franchise term and for a set period after it ends — and whether the …
Franchise Opening Timeline: Signing to Grand Opening
For most franchises, the gap between signing the franchise agreement and opening the doors runs from a few months to roughly a year — driven far more by real …
Franchise Operations Manual: How Often It Changes
There is no fixed schedule. A franchisor updates the operations manual whenever the brand, the law, or the market requires it — and the franchise agreement …
Franchise Real Estate and Lease Provisions
For a location-based franchise, the lease structure decides who really controls your premises — and what happens to the location if the franchise relationship …
Franchise Renewal and Exit Strategy Checklist
Every franchise agreement ends — the only question is whether you renew, sell, or close, and whether you plan for it or get caught flat-footed. The two …
Franchise Renewal and Requalification: What to Expect
Renewing a franchise is not a formality — it’s a requalification, where you have to re-earn the right to operate by meeting the franchisor’s …
