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 Application Form: What It Is and How It Works
A franchise application form is the franchisor’s pre-qualification questionnaire — a screening tool that collects a candidate’s net worth, liquid …
Franchise Agreement Changes in Fast Food: What to Know
Fast-food franchise agreements are shifting toward higher ongoing costs and tighter control — bigger advertising-fund and technology obligations, mandatory …
FDD Renewal: Deadlines and Steps for Franchisors
FDD renewal is the franchisor’s yearly obligation to update its Franchise Disclosure Document and re-register it in every state that requires …
How to Exit a Franchise Agreement
You can exit a franchise agreement in three main ways: sell the business to a franchisor-approved buyer, negotiate a mutual termination with the franchisor, or …
Franchise Evaluation Form: A Franchisor's Guide
A franchise evaluation form is a standardized scorecard a franchisor uses to assess each unit on the same criteria, on a regular schedule. Done well, it turns …
How Franchisors Support Underperforming Franchisees
A franchisor supports an underperforming franchisee by diagnosing the cause early, then applying graduated help — retraining, operational coaching, marketing …
Franchising Liquor Stores: Texas Laws, Licenses & Pitfalls
Franchising liquor stores is harder than franchising almost any other retail concept, because the asset that makes the store work — the liquor license — is …
Tax Implications of Franchising Your Business
When you franchise your business, the IRS generally treats both your initial franchise fees and your ongoing royalties as ordinary income — not capital gain — …
FDD Renewal Mistakes Franchisors Must Avoid
The costliest FDD renewal mistakes are missing the deadline, carrying over stale data, and making earnings claims you cannot support — and any one of them can …
Recession-Proof Franchises: What to Look For
No franchise is truly “recession-proof,” but the ones that hold up in a downturn share three traits you can verify before you sign: they sell …
Franchise Broker Performance Metrics Checklist
Measuring a franchise broker’s performance comes down to five things: the quality of the leads they send (not the volume), how candidates convert at each …
Franchise Disclosure Document (FDD): All 23 Items Explained
A Franchise Disclosure Document (FDD) is the legal disclosure document every franchisor must give you before selling you a franchise. The FTC’s Franchise …
Why Understanding Franchise Law Could Save Your Business
Franchise law saves businesses for one simple reason: nearly every expensive failure in franchising is a preventable one. Franchisees lose their savings to …
Franchise Compliance: A Guide for Franchisors
Franchise compliance is the franchisor’s ongoing duty to follow federal and state franchise law and to enforce its own brand standards across every unit. …
Franchise Marketing & Advertising Support Guide
Marketing and advertising support is one of the main reasons a franchisee pays to join your system instead of opening an independent business — and how you …
Franchise Compliance Program: A Franchisor's Guide
A franchise compliance program is the documented system a franchisor uses to meet its legal disclosure duties and hold every unit to the same brand and …
Does the FTC Non-Compete Rule Affect Franchises?
The FTC’s 2024 Non-Compete Rule never took effect, so it does not govern franchise non-competes — those are still controlled by state law and the terms of …
Do I Need My FDD Reviewed Before I Sign?
Yes — have your FDD reviewed before you sign. The Franchise Disclosure Document routinely runs well over a hundred pages across 23 items, the franchise …
Franchise vs License: What's the Legal Difference?
A license grants permission to use a piece of intellectual property — a trademark, a patent, a recipe — while the licensee runs its own business however it …
Cross-Default Clauses in Franchise Agreements
A cross-default clause makes a default under one agreement count as a default under another — so missing a payment on your lease or loan can put your franchise …
