Franchise Laws: What You Need to Know
Knowledge is power. You need to understand the franchise laws in order to negotiate reasonable terms in your franchise agreement. Many larger franchises will not negotiate terms of their franchise agreements. In that case, you need to understand the laws well enough to decide whether or not you can live with their terms and proceed to buy the franchise.
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The FDD: Franchise Disclosure Document
Click to see a sample FDD Disclosure:
Sample
FDD Franchise Disclosure Document
Click for in depth information about FDD Documents:
FDD
franchise disclosure information
Click to see the rule authorizing the FTC FDD disclosure process
Federal franchise laws and rules are regulated by the FTC. Several states have additional requirements. The most typical additional state requirement is to require a review and registration of the Franchise Disclosure Document (FDD) with the state. If a franchise has been long established or is above a certain size, states may exempt that franchise from registering the FDD at the state level.
Any franchise agreement you sign will be subject to state and federal laws. It is very important that you take the time with a franchise attorney to understand the franchise agreement and how it will govern the relationship between yourself and the franchisor.
Franchise Research
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