The Essentials of Franchise Law

Franchise businesses account for more than half of all U.S. retail sales and one in every seven jobs today. While most associate franchising with McDonald's golden arches, franchise businesses are far more diverse and touch at least 75 different industry sectors. Franchising is a business model that accelerates a brand's expansion. At the core of every franchise relationship is a contract whereby a concept owner licenses its trademarks and business methods to an entrepreneur motivated to own and operate their own business under the concept owner's brand. Unlike other types of private contractual arrangements, the process of selling and terminating franchise relationships is highly regulated by laws with potentially serious consequences if not complied with, including personal liability of the franchisor's management, treble damages, and even jail time. Given the undeniable popularity of franchising and its economic importance, every practitioner should know the essentials of franchise law and how to identify when a commercial relationship is a franchise.  

This course, presented by Rochelle Spandorf, of Davis Wright Tremaine's Los Angeles office, a nationally-recognized thought leader in franchise law, will explain the fundamentals of U.S. franchise laws including how to recognize when a license, dealer or distribution agreement is really a franchise. The course will demystify franchise sales compliance duties by explaining the basics of pre-sale disclosure and registration requirements, describe how franchise relationship laws work, offer guidance for effective franchisee representation, and highlight key judicial and regulatory decisions in the practice area.  

1. Discuss what a franchise is, the distinctions between a franchise and a non-franchise license, and why franchise status is important

2. Review the basics of franchise sales laws, including the function of the franchise disclosure document, legal duties in franchise registration states, ongoing franchise sales compliance responsibilities, and financial performance representations

3. Comprehend the scope of state franchise relationship laws in regulating franchise parties

4. Draft effective franchise agreements

5. Identify key concerns in representing franchisees, with reference to important franchise cases and enforcement decisions