Franchise law is the body of law developed to regulate the relationship between the franchisee and the franchisor

1. The 15 Minute Guide To Understand The Concept Of Franchise Law
Franchise law deals with the legal issues about the relationship of an individual or company
(franchisee) acquiring the right to sell the products or services of another company (franchisor).
It brings about the different areas of the law to address the relationship between the franchisor and
the franchisee, as well as other issues such as the relationship of the franchisee to the employees
and third party elements.
In a franchise system, a person may buy the right to sell a product of a licensed company or
franchisor. This is not similar to other resale systems because the seller only sells exclusively the
franchise services and trademarks under the franchisor’s brand name. Franchise law is the body
of law developed to regulate the relationship between the franchisee and the franchisor.
Federal statutes or the FTC or Federal Trade Commission regulates franchise laws. Each region
may implement their own laws and regulations regarding the legal relationship between franchisor
and franchisee in their respective areas. The tort system can also apply ruling and decisions that
directly affect the franchising system. Since there is a variety of regional or state laws, how
franchise law is applied can vary widely from one region to another, and may be different from one
country or the other. A franchise contract can be legal in one state but it may be illegal in another.
Due to the unique legal relationship between franchisor and franchisee, franchise law has
developed its own distinctive body of laws. But even if it has evolved and branched out to
numerous other areas, franchise law as a whole is still related to a multitude of legal specialty
areas. Other legal areas that are related to franchise law are the business law, contract law,
trademark law, collections law, international law, employment law, administrative law and customs.
If you are ever considering on starting up or owning a franchise business, you need to consult first
with an experienced franchise lawyer. Franchise law luminaries should always be present during
negotiations with franchisers so one can be legally advised and fully protected by the law. It is
better to get a lawyer specializing in this particular branch than an ordinary lawyer who has to
catch up in recent franchise legislation.
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