Legal & Compliance

It is crucial to the success of your franchise operation that the franchise structure and relationship be properly established. This involves careful analysis and guidance from an experienced franchise attorney and franchise consultants. Understanding the synergy that exists between their respective roles, our franchise attorneys and consultants work together throughout the franchise development project to create the ideal franchise system for your company.

It is important to note that FranSource’s independent franchise attorneys fully represent our clients under a client-attorney relationship. Averaging 25+ years’ experience, they are well qualified to assist and advise you concerning your franchise structure and relationship, state registrations, compliance issues, international expansion and other similar matters.

Below is an outline of various legal services provided by our franchise attorneys. Many of the legal services are included as part of our comprehensive Franchise Essentials Development Program. If you would like to schedule a free consultation with a franchise attorney, please complete our Free Consultation Form.

The Franchise Disclosure Document & Franchise Agreement
The FTC requires 23 “items” to be disclosed in the Franchise Disclosure Document concerning the franchise company and provisions contained in the Franchise Agreement. We fully assist you in establishing the terms of the franchise relationship and completing our proprietary questionnaires to help ensure that all aspects of the franchise business are fully identified and properly disclosed. The FDD, Franchise Agreement and Exhibits are prepared by Counsel in conformance with the FTC Franchise Rule. This enables your company to begin granting franchises in 36* “non-registration” states upon completion of the documents. Fourteen states have individual franchise registration requirements that must be completed prior to soliciting and selling franchises in these states.

* Five of the 36 “non-registration” states require the filing of a simple “exemption form.” Six states (CT, GA, LA, ME, NC and SC) have requirements that must be met if a franchisor does not have a federally protected trademark (a state registered trademark is accepted by GA, LA and SC). The requirements may include filing under each state’s Business Opportunity Laws. if you do not have a federally protected trademark (which is common with new franchise companies), please contact us for additional information.