Find a Franchising Lawyer

Franchising allows an individual to sell or market a product with the permission of the manufacturer. In the United States, there are four different types of franchising: product, manufacturing, business opportunity ventures and business format franchising. Perhaps the best-known franchises are fast-food restaurants. Franchising is an ideal way for entrepreneurs to get into business and enjoy the competitive advantage of already-established brand names and products. Franchising is also an ideal way for owners of existing businesses to expand their market and increase revenue. But challenges come with a franchising opportunity. Franchising involves a host of complex federal and state (and sometimes international) legal issues such as copyright, antitrust, employment, real estate and intellectual property laws. It involves contractual documents, litigation of disputes, complex tax issues and trade regulations. Franchising law also evolves and presents new challenges. In 2004 in California, for example, an issue arose on whether franchisors should be considered commercial finance lenders. The Federal Trade Commission governs franchise law in the United States. Still, franchise laws vary from one locality to another. Continued... By Kathleen Goolsby