Franchise Law Overview

Understanding Franchising Law

Selling a company’s goods or services with the proper legal authorization, known as franchising, is an important and successful business model. However, as in any business deal, it is vital to protect oneself by becoming well-informed. Sound, upfront franchise business advice and counsel are critical to a franchisee’s long-term success.

We are a United States and international franchise law Partnership Mario L Herman and Gregory O Herman. With more than 30 years of experience, Mario Herman has represented prospective franchisees, existing franchise owners, and former franchise owners in both domestic and international franchising law.

Whether to discuss the different forms of franchising or the potential pitfalls of your undertaking, contact us, Mario L Herman and Gregory O Herman, for thorough, knowledgeable representation.

What Types of Franchising Exist?

There are primarily two forms of franchising: product/trade-name franchising and business-format franchising. The simplest form of franchising is product or trade-name franchising. In this relationship, the franchisor owns the right to the name or trademark and sells that right to a franchisee. Examples of product/trade-name franchises include petroleum distributors and soft drink bottlers.

In business format franchising, a broader, ongoing relationship exists between the franchisee and franchisor. In essence, the franchisee is purchasing the franchisor’s expertise, experience, and method of doing business. Business format franchisors provide a full range of services, including:

Site selection
Training
Product supply
Marketing plans
Assistance in obtaining financing

Key elements of a business format franchise include a marketing strategy and plan, operating manuals, and a uniform business concept. The franchisee pays an upfront franchise fee and ongoing royalty fees, which enable the franchisor to provide training, research and development, and ongoing support to its franchisees.

Some common examples of business format franchising include:

Contact Mario L Herman and Gregory Herman — U.S. Franchise Business Attorneys

Contact us, Mario L Herman and Gregory O Herman, to discuss your franchising venture. As experienced franchisee attorneys, we can help you with every aspect of your franchise.