FRANCHISE LAW
Franchise Law Articles
Plain-English analysis of FDD reviews, franchise agreements, exit strategy, and ongoing counsel for franchisees and franchisors.
477 articles
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 …
Why Your Franchise Agreement Needs an Exit Strategy
An exit strategy is the part of your franchise plan that decides how you get out — by selling, transferring, or ending the agreement — and locking it in before …
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 …
Franchise Employment Law: A Compliance Guide
You comply with employment law in your franchise the same way any employer does — you, the franchise owner, are the employer of the people who work in your …
