FRANCHISE LAW
Franchise Law Articles
Plain-English analysis of FDD reviews, franchise agreements, exit strategy, and ongoing counsel for franchisees and franchisors.
480 articles
How to Franchise Your Business Without Legal Traps
To franchise your business legally, you must turn your operation into a disclosed, documented system: a registered trademark, a Franchise Disclosure Document …
How to Franchise Your Business: The Legal Steps
Franchising your business means licensing your brand, systems, and operating model to independent owners who pay to run their own outlet under your name — and …
How to Terminate a Franchisee: A Franchisor's Guide
Terminating a franchisee legally means three things: you have good cause under the franchise agreement, you give the written notice the agreement and your …
If Your Franchisor Fails or Is Sold: Franchisee Rights
If your franchisor goes out of business, your franchise agreement does not automatically vanish — and if your franchisor is sold, your agreement generally …
Is Your Brand Ready to Franchise Your Business?
Your brand is ready to franchise when your trademark is federally registered, your other intellectual property is protected, and your brand standards are …
Item 19 Financial Performance Representations Guide
If your franchise makes financial performance representations, the legal rules are narrow and specific: any claim about a franchise’s sales, income, or …
Joint Employer Liability for Franchisors
Joint-employer liability affects a franchisor by making the brand a co-employer of its franchisees’ workers — and therefore liable for those …
Legal Requirements to Franchise Your Business
Before you can legally franchise your business, you must prepare a Franchise Disclosure Document (FDD) that complies with the FTC Franchise Rule, deliver it on …
License vs. Franchise: Are You Already a Franchisor?
Converting a license system into a franchise usually means one of two things: you have decided to franchise on purpose, or you have discovered that your …
Multi-Unit Franchising: Pros, Cons, and How to Decide
Multi-unit franchising makes sense when you have the capital, the management depth, and the appetite to commit to a fixed opening schedule — and it backfires …
Multistate and Roll-Up FDDs, Explained
A multistate or roll-up FDD is a single Franchise Disclosure Document built to be used in every state at once, with state-specific addenda bolted on instead of …
Negotiation Skills Every Franchise Broker Needs
A franchise broker’s whole value lives in the space between a franchisor and a prospective franchisee — and bridging that space is a negotiation. The best …
State Franchise Laws: Registration and Relationships
State franchise laws come in two distinct kinds: registration/disclosure laws that govern how a franchise is sold, and relationship laws that govern how it can …
The Real Costs of Buying a Franchise
The real cost of buying a franchise is far more than the initial franchise fee — it is that fee plus ongoing royalties, advertising contributions, equipment, …
Updating a Franchise Agreement for New Technology
A franchise agreement accommodates new technology and industry change mainly through standards that the franchisor can update over time — rather than by naming …
What an FDD Is and Why It Matters Before You Sign
A Franchise Disclosure Document (FDD) is the single most important document you will read before buying a franchise: it is the federally mandated disclosure a …
What Franchisors Sue Franchisees For: Claims & Remedies
Franchisors sue franchisees for a short, predictable list of things: unpaid royalties and fees, continued use of the trademarks after termination, breach of …
What Happens After Franchise Termination
After a franchise is terminated, the agreement does not simply end — a set of post-termination obligations takes over, and they determine your real cost of …
What Is the FTC Franchise Rule? A Plain-English Guide
The FTC Franchise Rule is the federal regulation — 16 CFR Part 436 — that requires a franchisor to give you a Franchise Disclosure Document (FDD) at least 14 …
What the FDD Doesn't Tell You About a Franchise
The FDD tells you a great deal about a franchise — fees, litigation, obligations — but it does not tell you whether the business will actually work for you, and …
