Law Library Articles
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. Liability of Franchisor for Acts of Franchisee
A franchisor is not usually liable for the actions of a franchisee. The franchisee is an independent business owner, not an employee. However, a franchisor may be held responsible if they had a great deal of control over the franchisee’s daily operations.
2. Covenants Not to Compete in Franchise Agreements
A covenant not to compete is a common clause in a franchise agreement. It prevents a franchisee from opening a similar business in the same area for a certain period. Courts will enforce these agreements if they are reasonable in time and geographic scope.
3. Franchises and Franchising
Franchising is a popular way to do business. A franchise agreement allows a person to use an established company’s brand and operating system. This relationship is governed by both state and federal laws. Read this article to learn more about franchise laws and regulations.
4. Business Franchise Disputes
Disputes can arise between a franchisor and a franchisee. These often involve issues like trademark violations or a breach of the franchise agreement. Legal remedies can include money to cover losses or a court order to take a specific action.
5. California Franchise Laws
California has specific laws that regulate franchises in the state. The Franchise Investment Law requires franchisors to provide a detailed disclosure document to potential buyers. Failing to follow these rules can lead to serious legal penalties for the franchisor.
6. Franchise Assignment
A franchise assignment is the transfer of a franchise from one owner to another. Most franchise agreements include rules about how this can be done. The franchisor usually has the right to approve or deny the transfer.
7. Franchise Fraud Lawyers
Franchise fraud occurs when a franchisor misleads a potential franchisee. This can involve making false promises about potential earnings. A victim of franchise fraud can sue for damages.
8. Uniform Franchise Offering Circular Lawyers
A Uniform Franchise Offering Circular or Franchise Disclosure Document provides key information about a franchise. Federal law requires franchisors to give this document to potential franchisees. An attorney can help you understand the information in this important document.
9. Distributorship Lawyers
A distributorship is a business that sells goods for a manufacturer. While similar to a franchise, there are legal differences. The Federal Trade Commission uses specific rules to determine if a distributorship is legally a franchise.
10. Restrictions in the Resale of Goods by Distributors
A manufacturer may try to control the price at which a distributor resells its goods. These agreements, known as vertical price restraints, can violate antitrust laws. Courts will look at the specific details of the agreement to see if it is legal.
