Franchising Law

The Mission of the Forum on Franchising is to be the preeminent forum for the study and discussion of the legal aspects of franchising.

The Forum's International Division provides an opportunity for education, networking and the exchange of ideas among franchise lawyers from around the world. This year's Division breakfast program will focus on the localization of franchise systems.

The following questions recently have been asked about the amended Franchise Rule. These questions will be addressed in the forthcoming Compliance Guide. Additional questions and responses will be posted periodically in order to assist franchisors in their review of the amended Rule requirements.

The Federal Trade Commision has a large code of regualtions that is known as the franchise rule. A section of this rule requires the franchisor to provide a disclosure statement to the potential franchisee. This statement is called a Uniform Franchise Offering Circular (UFOC).

UFOCs.com is the definitive source of current and historical FDDs/UFOCs and Item 19s. Over 20,000 FDDs/UFOCs are available from an extensive library that dates back to 1990. Roughly 3,000 individual franchise concepts are listed in our FDD/UFOC Store. Whether you need a company's entire FDD/UFOC, including Franchise Agreement, or an individual FDD/UFOC item, we can meet your needs in an efficient and cost-effective manner.

Uniform Franchise Offering Circular (UFOC) Guidelines were prepared and adopted by the North American Securities Administrators Association (NASAA) and its predecessor, the Midwest Securities Commissioners Association. Although NASAA cannot create statutes (that is the constitutional province of state legislatures), NASAA intends for the UFOC Guidelines to facilitate compliance with disclosure requirements under state franchise investment laws.

Franchising is the practice of using another firm's successful business model. For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods and avoid investment and liability over a chain. The franchisor's success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.

The Federal Trade Commission, the nation's consumer protection agency, collects complaints about companies, business practices, identity theft, and episodes of violence in the media.

Fifteen states have franchise investment laws that require franchisors to provide pre-sale disclosures, known as "offering circulars," to potential purchasers. Thirteen of these state laws treat the sale of a franchise like the sale of a security. They typically prohibit the offer or sale of a franchise within their state until a franchise offering circular has been filed on the public record with, and registered by, a designated state agency.

FranchiseHelp.com is the only one-stop global address for almost everything in franchising. Operating since 1996, FranchiseHelp will assist you in a professional, cost effective way to reach your franchise objective.

For 20 years, FRANdata has been focusing exclusively on franchising activity in every industry in every company. We work with franchisors to benchmark and improve their performance; with franchisees, to help them assess opportunities, and with suppliers of all kinds to market to and provide services for every franchise company. If your business is in franchising or selling to franchise businesses,

The International Franchise Association, founded in 1960, is a membership organization of franchisors, franchisees, and suppliers. Our Web site is dedicated to providing our members and guests with a one-stop shopping experience for franchise information.

In the United States, NASAA is the voice of state securities agencies responsible for efficient capital formation and grass-roots investor protection. Their fundamental mission is protecting consumers who purchase securities or investment advice, and their jurisdiction extends to a wide variety of issuers and intermediaries who offer and sell securities to the public.

The Open Franchise Foundation is a 501(c)(3) organization formed to promote the unfettered access to franchising related documents, such as the UFOC and FDD. It is entirely funded by the generous support of our founding benefactors and franchising community members. Together we advocate franchise openness and equal access to information.

The World Franchise Council is as an amicable and a non political association of National Franchise Association which was established by decision of a meeting of National franchise Association Executives held on Monday, February 14th, 1994 under the auspices of the International Franchise Association (IFA) and supported by the European Franchise Federation during IFA 1994 Convention in Las Vegas. That meeting considered a draft constitution produced following the first International franchise summit held on December 1st, 1993 under the auspices of the Mexican Franchise Association.

When you buy a franchise, you often can sell goods and services that have instant name recognition, and get training and support that can help you succeed. But purchasing a franchise is like every other investment: there’s no guarantee of success. The Federal Trade Commission, the nation’s consumer protection agency, has prepared this booklet to explain how to shop for a franchise opportunity, the obligations of a franchise owner, and questions to ask before you invest.

The five most frequently asked questions about franchise and business opportunities are: 1. Where can I get a company's pre-sale disclosure document? 2. How can I find out about complaints against a company? 3. How can I file a complaint against a company? 4. How do I know what must be included in a franchise disclosure document? 5. How can I find a lawyer who specializes in franchising?