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#1 12-12-2017 06:11:21

Date d'inscription: 14-02-2017
Messages: 797


The United States Federal Trade Commission (FTC) regulates franchising , and FTC rules apply in every state. Any USA franchise attorney must be knowledgeable about FTC regulations on franchises. Under federal law, a franchise has three elements:

· The trademark: this gives franchisees a right to provide goods and services bearing the franchisor's trademark, trade name, logo, or service mark.

· Control: the franchisor has control over various aspects of the franchisee's operation , including but not limited to site approval, design and appearance, operating hours, and production techniques.

· Franchise fee: a franchisee must pay the franchisor a fee of at least $500 within six months of opening for business. Other fees may apply as well, including royalties and training fees.

Basic Types of Franchise Laws

A USA franchise attorney must understand the three basic categories of franchise law , which are registration laws, disclosure laws, and relationship laws. Registration laws govern registration of the franchise, salespersons, and advertising. Disclosure laws cover pre-sale disclosures , prohibited practices in franchise sales, and mandatory "cooling off" periods before franchise sales are final. Franchise relationship laws cover areas like grounds for termination or non-renewal of a franchise, notification periods before termination of a franchise, and equal treatment of franchisees by the franchisor.

Franchise Law Violations

If you work with a franchise lawyer in Miami, he or she will explain the most common violations of franchise laws and how to protect yourself. Common violations include:

· Failing to provide required disclosure documents on time

· Misrepresenting prospects for franchisees

· Improper termination or non-renewal of franchises

· Selling an unregistered franchise

Violations of franchise laws may result in fines … ch-Jersey/ , bans on franchising, payment of damages to victims, freezing of assets, or even prison time. Violation of state laws concerning franchising is usually treated as fraud or deceptive trade practices. Depending on the state, franchisees harmed by franchisor actions can be awarded damages or cancellation of the franchise agreement plus reimbursement of franchise fees.

Franchise Disclosure Documents

Franchisors must provide any prospective franchisee with a franchise disclosure document (FDD) under FTC regulations. Many franchisors choose to provide the FDD in a format called the Uniform Franchise Offering Circular (UFOC) … eu-Jersey/ , which is acceptable in all states. The rules for what goes into disclosure documents are lengthy and specific. Potential franchisees must receive disclosure documents 10 or more days before any agreements are signed. The franchisor also has to provide a potential franchise with a filled in version of the franchise agreement at least five business days before any agreement or payment is completed.

State Laws on Franchise Relationships

State laws vary, but in general they cover topics like the following:

· Free association among franchises for the purposes of participating in trade associations

· Specifications on where marketing fees collected in a particular state must be spent

· Required purchases from franchisors or designated sources

· Encroachment by franchisors opening new units in the same area as an existing franchise

Working with a Miami area franchise lawyer from the very beginning is the best way to ensure that your South Florida franchise operates legally and has the best chances for success.

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