This definition was published in partnership with national leading attorneys in franchise law, Zarco Einhorn Salkowski, P.A.
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.