Franchise Legal Regulations

Franchise legal regulations are laws and guidelines that govern the relationship between franchisors (the companies offering franchises) and franchisees (the individuals or businesses purchasing the rights to operate under a brand). These regulations ensure transparency and fairness in the franchise agreement, including disclosure of important information, protecting franchisees from unfair practices, and setting standards for operations. In many countries, franchisors must provide a Franchise Disclosure Document (FDD) that details the business model, fees, obligations, and potential risks, helping prospective franchisees make informed decisions before investing.