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Franchise law firms help buyers and sellers of franchises (franchises and franchisors) understand how franchising works, and what their rights and responsibilities are under franchise laws. They also cover licensing agreements for those who want to create licensed products and those who want to sell licensing of certain creative content. Franchise law is not just one sector of law, but a mix of many different legal areas. Franchising law may include aspects of trademark law, administrative law, contract law, acquisitions and mergers law, and even international law in some cases. Here are a few more specific situations where franchise lawyers can help. Termination and Refusal to Renew If you are in a situation where a franchisor is attempting to terminate your franchise even though you have done well, you may need the help of franchisee lawyers. Depending on the statutory and contractual laws in your state, your franchisor can't terminate your franchise without good cause. Sometimes franchisors try to achieve termination by simply refusing to renew your franchise agreement when it is up. There are laws to help protect franchisees from being terminated in this way as long as the franchise is performing adequately. If your franchisor refuses to renew your franchise without cause, you may be able to get relief from the court system and keep your business running. Territorial Protection and Expansion Sometimes franchisors attempt to increase the number of businesses they have at the expense of already existing franchises. Sometimes franchise owners build up their business in their territory over a period of many years only to find that the franchisor is putting new franchises in the area, potentially causing serious problems to the existing franchise. Other times franchisors attempt to prevent franchisees from expanding their territory, despite earlier promises that this could be done. Encroachment and denial of expansion are legal issues that experienced franchise lawyers deal with regularly, and sometimes injunctions can be obtained preventing franchisors from doing this. Fraud in Franchising Believe it or not, even today there are franchisors who mislead potential franchisees or neglect to give them all the information they need to make an informed franchise purchase. If you have started a franchise based on misleading or false information, your franchisor could be found guilty of fraud and be made to compensate you. If your franchisor has required you to sign something saying the franchisor makes no representations, they may be covering their tracks, and you should consult with a franchise lawyer. The best time to contact a franchise attorney, however, is before you sign any franchise agreement. Mergers and Acquisitions Corporate mergers and acquisitions can harm franchisees, for example, when the new company discontinues products sold by franchises. When newly-merged companies rebrand equipment, sometimes it has the effect of terminating franchises without good cause. Newly-merged companies are also generally not allowed to change policies in ways that hurt franchisees, such as requiring franchises to purchase proprietary computer systems. Not all mergers and acquisitions harm franchisees, but having a skilled franchise attorney from the beginning can help you understand your legal options.
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