U.S. Franchise Law

U.S. Franchise Law regulates the relationship between franchisors (companies that sell the right to use their brand) and franchisees (individuals or businesses that buy those rights). It ensures that franchisees receive adequate information about the franchise opportunity, including costs and risks, typically through a Franchise Disclosure Document (FDD). Franchise laws aim to protect franchisees from deceptive practices and to promote fair dealing in the franchise industry. The Federal Trade Commission (FTC) enforces these laws, but states can also have specific regulations that supplement federal requirements. This framework helps maintain transparency and fairness in franchising.