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Franchise Law Definition

Franchise law is governed by many different rules and regulatory bodies and is a combination of common, statutory and regulatory law. In simple terms, these laws are a combination of both federal and state rules that govern the registration of franchises, the relationship between franchisors and franchisees, as well as the offer and sale of franchises. The Federal Trade Commission (FTC) oversees all aspects of Franchise Law on a federal basis.

Franchise attorneys provide legal resolutions to business transactions and disputes that often includes breach, contracts, copyright, employment, misrepresentation, securities, structuring, operating agreements, real estate, trademarks and transactions.

As a heavily regulated industry, franchising, at the federal level, requires franchisees to have Franchise Disclosure Documents (FFDs). At a state level, Franchise Law is contingent on state regulations which may impact the pre-sell process and franchise agreements, alter the information needed in the FFD and offer varying protections to franchisees.

Franchise lawyers help franchisees navigate legal landscapes that affects their ability to and operate their businesses effectively. Franchisees can seek assistance with protection of exclusive territories and encroachment, breaches of contract claims, unfair and deceptive trade practices by the franchisor, negligence and/or fraud by the franchisor, tortuous interference with the business relationship and insurance litigation and disputes, including business interruption and other loss of income and damages.  

When disputes arise, franchise attorneys can be aggressive and strategic courtroom trial advocates through litigation, arbitration and mediation. Franchise lawyers, with a specialty as Commercial Litigation Trial Lawyers, can level the playing field against franchisors in business disputes, providing a valuable key to the courthouse when absolutely necessary.

This definition was published in partnership with Zarco Einhorn Salkowski & Brito Attorneys.

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