Gross Law Group represents franchisors and business operators who want to franchise their concept and become franchisors. We’ve guided franchise companies from start up, over the years during their growth and managed the transaction where they’ve sold their brands off to private equity buyers. We’ve got you covered at every stage of your business.
Our team has extensive experience handling matters on behalf of franchisors including drafting of franchise disclosure documents, state regulatory filings and registrations, and dispute resolution with current and former franchisees.
At Gross Law Group we specialize in franchise law, providing expert legal counsel to franchisors, franchisees, and entrepreneurs navigating the complex world of franchising. Whether you’re launching a new franchise system, expanding an existing one, or entering into a franchise agreement as a franchisee, understanding the legal framework is critical to your success. Below, we break down the key concepts of franchise law to help you make informed decisions.
What is Franchise Law?
Franchise law governs the relationship between franchisors (the company offering the business model) and franchisees (the individuals or entities purchasing the right to operate under the brand). This area of law encompasses federal and state regulations, contract agreements, intellectual property protection, and dispute resolution. It ensures that both parties adhere to their obligations while fostering a mutually beneficial partnership.
The Franchise Disclosure Document (FDD)
One of the cornerstones of franchise law in the United States is the Franchise Disclosure Document (FDD). Required by the Federal Trade Commission (FTC) under the Franchise Rule, the FDD is a detailed document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands. The FDD includes 23 specific items, such as the franchisor’s financial statements, litigation history, initial fees, ongoing costs, and the obligations of both parties. Our team ensures that franchisors comply with FDD requirements and that franchisees fully understand the document before committing. For more detailed information about the FDD, click here.
Franchise Agreements
The franchise agreement is the binding contract between a franchisor and franchisee. It outlines the rights and responsibilities of each party, including the use of trademarks, operational standards, territory rights, fees (such as royalties and advertising contributions), and the duration of the agreement. These contracts are often complex and heavily favor the franchisor, making it essential for franchisees to have experienced legal representation to negotiate terms and protect their interests.
Intellectual Property Protection
A franchise’s brand is its most valuable asset. Franchise law ensures that trademarks, logos, trade secrets, and proprietary systems are safeguarded. Franchisors usually register their trademarks with the U.S. Patent and Trademark Office (USPTO) and enforce consistent brand standards across all locations. For most franchisees, compliance with these standards is non-negotiable to maintain the integrity of the franchise system.
State-Specific Regulations
While the FTC oversees federal franchise regulations, many states have additional laws that impose stricter requirements. For example, states like California, New York, and Illinois require franchisors to register their FDD with state agencies before offering franchises. Our attorneys are well-versed in both federal and state-specific compliance, ensuring your franchise operates legally no matter where it’s based.
Common Disputes in Franchising
Franchise relationships can sometimes lead to disputes, such as disagreements over territory encroachment, royalty payments, or termination of the agreement. Mediation, arbitration, or litigation may be necessary to resolve these issues. We represent both franchisors and franchisees in negotiations and legal proceedings, striving for fair outcomes that preserve business relationships whenever possible.
Why Choose Gross Law Group?
With extensive experience in franchise law, we offer tailored solutions for every stage of the franchising process. From drafting and reviewing agreements to resolving disputes and ensuring regulatory compliance, we are your trusted partner in building and protecting your franchise. Our goal is to help you minimize risks and maximize opportunities in this dynamic industry.
Florida: A Franchise-Friendly State
Florida stands out as an exceptional state to base a franchise company, thanks to its business-friendly environment, lack of state income tax, and thriving tourism economy, which drives demand for franchise concepts like restaurants, hotels, and retail chains. Cities like Miami, Orlando, and Tampa offer diverse markets and a robust infrastructure for growth. At Gross Law Group, we’re proud to call Florida home and leverage our deep understanding of its unique advantages to support franchisors and franchisees here. That said, our expertise extends far beyond the Sunshine State—we work with franchise businesses across the nation, delivering the same high-quality legal services no matter where you’re located.
Ready to discuss your franchise needs? Contact Gross Law Group today to schedule a consultation with our experienced franchise law attorneys.