FRANCHISE LAW
Franchise Law Articles
Plain-English analysis of FDD reviews, franchise agreements, exit strategy, and ongoing counsel for franchisees and franchisors.
478 articles
Technology and Software Clauses in Franchise Deals
The technology and software clauses in a franchise agreement can require you to buy specific systems, pay recurring technology fees, and accept mandatory …
The Decline of Baja Fresh: Lessons for Franchise Buyers
Baja Fresh is one of the clearest lessons in modern franchising on what it means to buy into a declining system. Wendy’s International paid $275 million …
The Decline of Blockbuster: A Franchise Failure
Blockbuster went from 9,094 stores and 84,300 employees at its 2004 peak to bankruptcy in 2010 — six years. For franchise buyers, the legal lesson is sharper …
The Downfall of Howard Johnson's: A Franchise Lesson
Howard Johnson’s was once the largest restaurant chain in the United States — more than 1,000 restaurants and 500 motor lodges by 1975, the orange roofs …
The Failure of Cartridge World's Franchise Model
Cartridge World is the franchise lesson nobody wants to learn the expensive way: a well-run unit cannot outgrow a shrinking market. The ink-and-toner refill …
The Franchise Operations Manual: What It Must Do
The operations manual is the document that turns a franchise agreement’s promise of “brand standards” into specific, enforceable rules — and …
Transfer vs. Sale Rights in a Franchise Agreement
You cannot sell a franchise the way you sell an ordinary business. The franchise agreement licenses the brand to you, and three separate clauses control what …
Turnkey Franchise: What It Really Means
A turnkey franchise is one you can “turn the key” and open: the franchisor delivers a substantially ready-to-run business — site selection, …
Updating Your Franchise Agreement: When and Why
Update your franchise agreement whenever the law, your fees, your brand standards, or your system materially change — and at least review it once a year …
What a Franchise Attorney Does and When to Hire One
A franchise attorney is a lawyer who works specifically with franchise disclosure documents, franchise agreements, and the federal and state rules that govern …
What a Franchise Broker Does and Who Pays Them
A franchise broker — sometimes called a franchise consultant — is a matchmaker who helps prospective owners find a franchise to buy, and in almost every case …
What Is a Franchise Disclosure Document (FDD)?
A Franchise Disclosure Document (FDD) is the legally required disclosure a franchisor must give every prospective franchisee before any sale — a standardized, …
What Is a Franchise Successor Agreement?
A franchise successor agreement is the new agreement a franchisee signs to keep operating the same franchise for another term after the initial term expires. It …
What the Fall of Krispy Kreme Teaches Franchisees
The real lesson of Krispy Kreme’s “fall” is that a franchisor’s financial health is the franchisee’s problem too. Krispy Kreme …
Why Franchisees Fail: The Most Common Causes
Most franchisees who fail do so for a short list of avoidable reasons — undercapitalization, a poor location, a financially weak franchisor, and a mismatch …
Bankruptcy and Your Franchise: A Legal Guide
In a franchise bankruptcy, the franchise agreement is usually treated as an “executory contract” that the bankruptcy estate can choose to keep or …
Confidentiality Clause vs. NDA in Franchising
A confidentiality clause is a provision inside your franchise agreement; a non-disclosure agreement (NDA) is a separate, standalone contract. Both exist to keep …
Exclusive vs. Protected Franchise Territory Explained
An exclusive territory is a binding promise that the franchisor will not open — or let any other franchisee open — a competing outlet of the same brand inside …
Franchise Assignment vs. Subfranchising Explained
Assignment transfers an existing franchise to a new owner; subfranchising creates new franchises within a territory through an intermediary. Assignment is how a …
Franchise Due Diligence vs. Feasibility Study Explained
Due diligence investigates the franchisor: is this company what it claims to be, and what does its disclosure document actually say? A feasibility study tests …
