Franchising

We have deep experience in franchising and regularly represent both franchisors and franchisees, both domestically and internationally. Franchising is a method of distribution that combines the advantages of a branded, centralized system with the capital and micro-management of local independent business persons to produce a market competitor with critical mass. It can leverage a business’s success far beyond its own capital and management resources.

Franchising’s inherent geographic expansiveness and long-term business relationships cause it to be affected by an array of dynamic federal, state, and local laws, such as Federal Franchise Regulation promulgated through the FTC, the Uniform Franchise Offering Circular (UFOC) adopted by various states, and various “business opportunity acts” and “relationship laws,” including the Texas Business Opportunity Act (BOA). While these various laws and regulations can be ambiguous and confusing and can create risks such as inadvertent franchising, we have the knowledge and expertise to guide our clients to minimize these risks.

Client Resources

Our franchising attorneys regularly apply their expansive experience in intellectual property law to publish articles and papers on franchise, trademark, copyright, and patent law issues, including:

  • How To Represent Prospective Franchisees and Franchisors” (2013): Franchising is a method of distribution that combines the advantages of a central specialized system with the capital and micro-management of local independent business persons to produce a market competitor with critical mass. Its inherent geographic expansiveness and long term business relationships cause franchising to be affected by an array of dynamic federal, state and local laws. The application of this collection of laws to franchise relationships is referred to as franchise law.
  • Unintentional Franchising” (2005): The focus is on honest businesses that do not realize they may be legally regulated as “franchisors” or “business opportunity sellers” and subject to potentially awful consequences due to noncompliance. This article first discusses federal and other states’ laws, then the Texas Business Opportunity Act (BOA), and finally, practical and litigation consequences.
  • You did what? Potential Pitfalls for the Franchisor” (2004): The purpose of this paper is to help the competent business attorney who does not yet have franchising experience anticipate and deal with potential pitfalls faced by small franchisors. The structure of the paper is to first deal with the practical aspects of handling a small franchisor’s crisis as its attorney and counselor within the bounds of ethical representation.
  • The General Practitioner’s Guide to Franchising” (2004): Franchising is a method of distribution that combines the advantages of a central specialized system with the capital and micromanagement of local independent business persons to produce a market competitor with critical mass. Its inherent geographic expansiveness and long term business relationships cause franchising to be affected by an array of dynamic federal, state and local laws. The application of this collection of laws to franchise relationships is referred to as franchise law.
  • Arithmetic 101 for Prospective Franchisees” (2003): The Capitalism Game: Grocery Store Example and Franchise Example; The Franchise Game: General Observations, The Goal of the Franchise Game, The – Royalty * Revenue & Expense * Profit – Relationship, and Franchised Business = A Leased Business; A Franchise Is Not Entirely “Your” Business.

Practice Category

Mark H. Miller
Mark H. Miller

Partner, San Antonio
210.978.7751

Our activities include counseling franchisors regarding disclosure requirements, creating disclosure documents, obtaining registrations in states which require them and assisting in the negotiations with prospective franchisees in the following areas:

  • Clothing
  • Clothing stores
  • Food products
  • Housewares
  • Medical equipment
  • Oil field equipment
  • Optical services
  • Restaurants
  • Salon services
  • Software
  • Sporting goods

Practice Category