How To Represent Prospective Franchisees And Franchisors




A. In General Franchising is a method of distribution that combines the advantages of a central specialized system with the capital and micro-management of local independent business persons to produce a market competitor with critical mass. Its inherent geographic expansiveness and long term business relationships cause franchising to be affected by an array of dynamic federal, state and local laws. The application of this collection of laws to franchise relationships is referred to as franchise law.

The Federal Trade Commission ("FTC") promulgated the Franchising and Business Opportunity Ventures Trade Regulation Rule 16 C.F.R. § 436 (The Rule) in 1979 to protect prospective franchisees from deceptive franchise sales practices. Eighteen states now have franchise statutes and twenty-four have business opportunity laws, most requiring written pre-sale disclosure to prospective buyers and some requiring pre-sale registration and regulating the parties' relationship. The Appendix A chart identifies these statutes.

Please see full Publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jackson Walker | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.