FRANCHISE LAW
Franchise Law Articles
Plain-English analysis of FDD reviews, franchise agreements, exit strategy, and ongoing counsel for franchisees and franchisors.
483 articles
Net Worth vs. Liquid Capital in Franchising
Net worth is everything you own minus everything you owe; liquid capital is the cash — or near-cash — you can put your hands on right now. That is the core …
Non-Compete vs. NDA in a Franchise Agreement
A non-compete restricts what business you can run; a non-disclosure restricts what information you can use or share — and a franchise agreement almost always …
Operations Manual vs. Franchise Agreement: Key Differences
The franchise agreement is the binding contract that defines your legal relationship with the franchisor. The operations manual is the detailed playbook that …
Personal Guarantee vs. Collateral in Franchising
A personal guarantee pledges all of your personal assets to back the franchise obligations, while collateral pledges only specific, named assets. That is the …
Sole Proprietorship vs. Corporation for Franchisees
A sole proprietorship means you and the business are the same legal person, so you are personally on the hook for every debt and lawsuit. A corporation — or, …
Termination vs. Non-Renewal in Franchising
Termination ends a franchise agreement early — before the term expires, almost always for a stated cause such as breach — while non-renewal simply lets the …
How Much Do Franchise Owners Make?
There is no single salary for a franchise owner — real-world earnings run from modest five figures to several hundred thousand dollars a year, and the spread …
Gas Station Franchise vs. Independent: Buyer's Guide
If you are buying a gas station, the franchise-versus-independent decision really comes down to three legal documents and one federal statute. A branded …
Buying an ATM Route: Legal Due Diligence Guide
When you buy an ATM route, you are not really buying machines — you are buying contracts. An ATM route business is a portfolio of placement agreements with host …
How to Find a Franchise Lawyer (and What They Do)
A franchise lawyer is an attorney who reviews your Franchise Disclosure Document (FDD) and franchise agreement, explains what you’re actually committing …
Car & Automotive Franchises: What to Know
Most automotive franchises — oil change, repair, car wash, and tire shops — are ordinary business-format franchises governed by the FTC Franchise Rule, while …
General Releases in Franchising: What You're Signing Away
A general release is a contract provision in which you give up the right to sue the other party for everything — every claim you have or might have against …
Franchise Broker Liability: Risks and Protections
A franchise broker’s biggest legal exposure is being treated as a “franchise seller” — which, under the FTC Franchise Rule, you are. That …
How to Read Your Franchise Disclosure Document
To read a Franchise Disclosure Document, start with the four items that expose the most risk — Items 3, 4, 19, and 20 — then work through the money items and …
Franchise Fees: The Complete Guide to Every Fee You'll Pay
Franchise fees fall into three buckets: a one-time initial franchise fee (commonly $20,000–$50,000), ongoing fees taken from your revenue — royalties typically …
Franchise Agreement vs. Master Franchise Explained
A standard franchise agreement licenses one operator to run a unit under your brand; a master franchise agreement licenses a partner to recruit and oversee …
Franchise Agreement Terms to Review Before You Sign
The terms that deserve the most attention in a franchise agreement are the ones that bind you for years and are hardest to change later: the fees, the length of …
Franchise Bankruptcy: A Franchisee's Options
Bankruptcy gives a financially distressed franchisee a structured, court-supervised way to pause creditors and decide whether to keep or shed the franchise — …
Why Have an Attorney Review Your FDD?
Have an attorney review your FDD because the document is built to disclose, not to explain — a franchise lawyer translates 200-plus pages of obligations into …
How to Read an FDD: A Franchise Buyer's Guide
Read your FDD by starting with the three Items that expose a franchise system’s health — litigation (Item 3), bankruptcy (Item 4), and outlet trends (Item …
