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 Renewal Rights: What's in Your Agreement
Franchise renewal is contractual, not automatic — your franchise agreement decides whether you can renew, on what conditions, and on whose terms, so read those …
Franchise Renewal Terms: A Quick-Reference Cheat Sheet
This cheat sheet covers the eight clauses that decide a franchise renewal — the notice window, the renewal fee, the then-current agreement, the remodel, the …
Franchise Royalties Explained: Rates, Types, Limits
A franchise royalty is the ongoing fee a franchisee pays the franchisor for the continued right to use the brand and operating system — almost always charged as …
Franchise Royalty Payments: How They Work and Cost
Franchise royalty payments are an ongoing fee — almost always a percentage of your gross sales — that you pay the franchisor for the continued right to use its …
Franchise Site Selection: How to Choose a Location
Site selection is a shared decision: you find and lease the location, but the franchisor usually has to approve it — and your franchise agreement sets the rules …
Franchise Supply Chain Management: A Guide
Managing a franchise supply chain means delivering consistent products to every unit while staying inside the sourcing rules you disclosed in your FDD — get the …
Franchise Supply Chain Provisions Explained
Supply chain provisions control where you have to buy the products, equipment, and supplies your franchise runs on — and whether the franchisor makes money when …
Franchise Term and Renewal Provisions Explained
Term and renewal provisions set how long your franchise lasts and on what conditions you can extend it — and renewal is rarely automatic. The initial term gives …
Franchise Terms 101: A Plain-English Glossary
A franchise is a license: the brand owner (the franchisor) lets you (the franchisee) run a business under its name, trademarks, and system in exchange for fees. …
Franchise Territory & Relocation Rights Explained
Your territory rights decide who can compete against you near your location, and your relocation rights decide whether you can move if the site stops working — …
Franchise Territory Rights vs. Restrictions Explained
Territorial rights protect the geographic area around your franchise; territorial restrictions limit what you can do inside and outside it. A right works in …
Franchise Territory Rights: A Guide to FDD Item 12
Your franchise territory rights are defined in Item 12 of the Franchise Disclosure Document (FDD) — and “protected” almost never means …
Franchise Training and Support Provisions
Training and support provisions decide what the franchisor is actually obligated to do for you — as opposed to what its brochures suggest it might do. The …
Franchise Transfer Fees: What to Know
A franchise transfer fee is the amount a franchisor charges to approve the sale or transfer of your franchise to a new owner. It’s separate from the …
Franchisee Advisory Councils: Role & Limits
A franchisee advisory council (FAC) is a franchisor-organized group of franchisees that gives the system a structured channel for franchisee input — it advises, …
Franchisee Associations and the Right to Associate
A franchisee association is an independent group formed by franchisees to give themselves a collective voice with the franchisor — and in a number of states, …
Franchisor Training and Support Obligations Explained
The support a franchisor is actually obligated to provide is whatever the franchise agreement and Item 11 of the FDD commit to in writing — not what the …
Franchisor's Right of First Refusal, Explained
A franchisor’s right of first refusal (ROFR) is a clause that lets the franchisor step into a sale of your franchise on the same terms a third-party buyer …
Future-Proofing Your Franchise Agreement
You cannot freeze the law, but you can draft a franchise agreement that bends with it — through compliance clauses, severability, a defined right to amend the …
How Long Until a Franchise Breaks Even?
Most franchises take somewhere between 18 months and three years to break even, though the real answer depends heavily on the concept, your initial investment, …
