{"id":358006,"date":"2016-04-04T10:46:18","date_gmt":"2016-04-04T15:46:18","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/hirealawyer\/choosing-the-right-lawyer\/franchising.html"},"modified":"2024-04-10T15:05:47","modified_gmt":"2024-04-10T20:05:47","slug":"franchising","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/franchising.html","title":{"rendered":"What Is Franchising Law?"},"content":{"rendered":"\n
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What Is Franchising Law?<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Franchising law governs the legal relationship between a franchisor that owns a brand and a franchisee who licenses that brand to operate a business. When buying or operating a franchise, an attorney can help you understand the franchise agreement and protect your rights throughout the process.<\/p>\n<\/div>\n<\/div>\n

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This area of law sets the rules for trademarks, fees, control of operations, and the disclosures franchisors must provide under federal and state regulations. Franchise law can also overlap with intellectual property law<\/a>\u00a0and <\/span>business and commercial law.<\/a><\/p>\n

Selling your own product is satisfying but carries an element of risk. Some small business owners like the confidence that a known product provides. For these owners, franchise opportunities are the chance to start a business with the support of an established company<\/a>.<\/p>\n

A\u00a0franchise\u00a0is a legal business relationship between the owner of an existing brand (the franchisor) and someone who licenses the brand for sale (the franchisee). McDonald’s restaurants are examples of a franchise business<\/a>. The McDonald’s Corp. owns the brand, but a franchisee owns and operates each franchise.<\/p>\n

This article explains this subset of business and commercial law. Keep reading to learn about the elements of franchise law and how a franchise attorney<\/a> can help protect your best interests and your business.<\/p>\n

Who Enforces Franchise Law?<\/h2>\n

State and federal laws<\/a>\u00a0regulate franchisors’ operations. The\u00a0Federal Trade Commission<\/a>\u00a0(FTC) requires all franchisors to provide prospective franchisees with a 23-element list of disclosures. The Franchise Rule applies to all legal issues surrounding franchise purchases.<\/p>\n

Elements of Franchise Law<\/h2>\n

A business relationship must have three key elements<\/a> to be a franchise. Entrepreneurs considering purchasing a franchise should ensure that all elements are part of the franchise agreement before signing.<\/p>\n