Franchise laws are all about the legal relationship between a franchisee, a person willing to sell the product of a company or franchisor.

The Franchise laws not only discuss the relationship between the franchisor and the franchisee but the franchisee’s relationship with its employees and other third party elements.

In a franchise system, a person may buy the right to sell a product of a licensed company or franchisor. But unlike normal resale systems, a franchisee sells the products or services of the franchisor under the franchisor’s trademark, trade name or brand name. Franchise law is the body of law developed to regulate the relationship between the franchisee and the franchisor.

Franchise law is regulated by federal statutes or in the US, is popularly known as the Federal Trade Commission or FTC. Additionally, each region enforces its own laws that affect the legal relationship of franchisors and franchisees within those areas. Courts also apply rulings and decisions that directly affect the franchising system. Since there are various regional or state laws, franchise law interpretation can be varied from one state to another or even one country from another. A franchise law may be considered valid and must be enforced in its state of origin but it can be considered illegal and must not be practiced in a neighboring region.

Franchise law is very distinct due to the unique relationship of franchisor and franchisee. Even though it has evolved and practiced in every states, it still has to adhere to other legal specialty areas. To be adept with franchise laws, one must also be familiar with the following laws, business laws, contract laws, trademark laws, collections law, international law, administrative law and customs.

If one is interested in a franchise, it is important to consult a legal expert on franchise law. Every time you enter into dealings with franchisors, you need to have the advice of a franchise lawyer and if necessary, they should be present whenever you are talking to the franchisors. An average lawyer may not specialize in franchise law.