Franchise laws and business rules and laws govern franchising and licensing. The difference between franchising and licensing is important as noncompliance or disguising a business relationship can be devastatingly expensive with high legal ramifications. When considering franchising, license, or becoming a franchisee or licensee in California it is vitally important to have a civil attorney review the contract and the specifics of the entity.

Franchise business laws:

  • Franchisee obtains the right to operate a business identified or associated with the franchisor’s trademark, or to offer, sell, or distribute goods, services, or commodities identified or associated with the franchisor’s trademark
  • Franchisor has significant authority, assistance, or control over the franchisee’s method of business operations
  • Banking and finance tax

When considering whether to franchise or license a business, regardless of what you call it on paper, federal and California business laws and regulations make the final determination of what it is legally. Attorneys know this fact all too well. Entrepreneurs are more susceptible to making this costly mistake when not counseled by a top attorney.

Franchising Requirements:

  • Selling a franchise requires Franchise Disclosure Documents (FDD), and must make it available to the seller 14 days before the sell
  • The buyer can sign on the 15th day after delivery
  • Significant control and/or assistance in the sale of a product or service

Our attorneys can talk to you about your legal options or concerns and how we can best help your business. Call our civil attorneys now at (855) 200-2889. You can also email us using the contact form below.

Our experienced civil attorneys will speak to you right away and handle your legal issues promptly. WE ARE HERE 24 HOURS A DAY TO ANSWER YOUR QUESTIONS. Se Habla Español.



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