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Top 10 Franchise Articles in the LegalMatch Law Library

Franchises bring one experience to the entire world, whether it’s a Big Mac from McDonald’s in Tokyo or tires from Big O Tires in Tallahassee. Many people like franchises because they are always familiar. Franchises also make it easy for an entrepreneur to open a business.

As with any type of business venture, there are specific regulating laws that apply to franchises. The following is a list of the top 10 franchise articles from the LegalMatch Law Library.

1. Franchises and Franchising Law

Franchises are magical places where you can walk in and purchase the same exact item in any location, even if those locations are on opposite sides of the world. If you are thinking about buying a local franchise, you should review this article for a helpful overview of applicable legal concerns.

2. Franchise Tax Lawyers

Benjamin Franklin once said that "… nothing in this world can be said to be certain, except death and taxes." Like everything else in this country, franchises must pay taxes. There is even a special franchise tax, as described in this article.

3. Liability of Franchisor for Acts of Franchisee

When a customer is dissatisfied, they usually sue the entire company, not just an individual employee. However, before you run off to sue Starbucks because a barista was unfriendly, you should review this article for helpful legal information.

4. Uniform Franchise Offering Circular Lawyers

Before a person can become the proud owner of the newest Howard Johnson’s motel or Big O Tires Store, they must read the franchisor’s "uniform franchise offering circular." More than just a brochure, a uniform franchise offering circular is a full disclosure of what acquiring the franchise really entails.

5. Franchise Contract Lawyers

Franchisors occasionally terminate a franchise contract for illegal reasons or in an illegal manner, which effectively shuts down the franchise. In 2012, the Small Business Administration reported that over 3% of franchises that had borrowed money from it were unable to repay the loan. If you think that your franchise contract was terminated by the franchisor, then read this article to find out about the rights you have as a franchisee.

6. Franchise Assignment Lawyers

When a company or a person assigns a franchise to another company or person, they are essentially handing over the keys to the franchise kingdom. Since the franchisor has a say in the franchisee’s potential assignment to a new party, there are many hoops to jump through. This article lays out what franchisees need to do in order to assign their franchises and what they can do if a franchisor refuses to agree to the assignment.

7. Covenants Not to Compete in Franchise Agreements

Franchises are not meant to serve as training grounds for franchisees to someday open up an exact replica of a franchise but with a different name. If it did, then the fast food marketplace would be inundated with more knockoffs than Canal Street in Lower Manhattan. Therefore, many franchise agreements contain covenants not to compete.

8. Franchise Fraud Lawyers

Everyone likes a guaranteed get rich quick scheme, but most get-rich-quick schemes end up failing horribly, which is why the term "Ponzi scheme" has such a negative connotation. People regularly try to prey on the greedy nature of human beings by offering fake franchises for sale, thereby engaging in franchise fraud. If you come across a franchise opportunity that seems too good to be true, you need to read this article to learn about franchise fraud red flags.

9. Distributorship Lawyers

There are several things that fill two purposes, such as smart phones that double as both cell phones and tiny computers. Another thing that can fill two purposes is a distributorship that also acts as a franchise. This article contains information to help you understand if your distributorship can also serve as a franchise.

10. Restrictions in the Resale of Goods by Distributors

You may have acquired the right to resell Nyquil as a distributor, but that does not mean that you can sell your entire supply to aspiring meth dealers. Many manufacturers and other distributors place restrictions on a person’s or a company’s ability to resell an item to the general public.

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