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What Is Franchising?

Franchising is a business model that is regulated by federal law and state-specific laws. Franchising allows business owners, who become franchisors, to achieve multi-unit business expansion through the issuance of licenses and other legal rights to third parties who become franchisees and who invest their own capital and efforts in establishing their own franchised business outlets that duplicate and follow the franchisor’s requirements, systems, and operating procedures. The legal documents that create a franchising relationship include the FDD, the franchise agreement, and the franchise operations manual.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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