Archive for the ‘Franchise and Licensing Law’ Category

» Franchise and Licensing Law On Monday, January 26th, 2009

In the United States, as well as in some other countries around the world, franchise and licensing law is a very important component of the overall business law system. Indeed, many businesses in the U.S. are organized under a franchise system.

If you are interested in owning your own business you will want to at least have a basic understanding of franchise and licensing law. Through this article you are presented with a basic introduction to franchise and licensing law. With this information in hand you will be in the best possible position to ascertain whether or not owning a franchise makes sense for you when it comes to your own goal of operating a business.

At the essence of franchise and licensing law is a system through which a person like yourself can by the rights to operate a business enterprise. Perhaps the most successful and significant example of a franchise system is that of McDonald’s restaurants. People throughout the world have obtain franchises and licenses to operate McDonald’s restaurants in local communities.

In simple terms, a franchise system involves a company that actually owns the franchise concept itself. (Going back to the fast food example, the McDonald’s Corporation owns the rights to sell specific franchises to individuals and companies that are interested in owning and running a McDonald’s restaurant,)

A person or company interested in owning a franchise makes application to the corporation seeking to become a franchise holder. If the franchiser approves the application, the individual or company will be granted a franchise license.

There are a variety of specifically mandated legal disclosures that are associated with a franchise. Therefore, it is imperative that the license holder provide these disclosure and it is vital that a person seeking to own a franchise closely review these disclosures. (As will be discussed shortly in this article, obtaining legal advice throughout this process is crucial.)

Through this license, the franchisee will be able to operate a franchise store or business for a specified period of time. The franchisee will be able to obtain a variety of benefits from the franchiser, including the reputation of the license holder itself. Moreover, typically the license holder will provide different types of support services to the franchisee – including product and advertising. (You do need to keep in mind that what is provided by the license holder varies from franchise to franchise.)

If you are interested in either purchasing a franchise or setting up a company that offers franchises, it is crucial that you obtain legal advice. The franchise game is not an easy one. Therefore, you need to make certain that you obtain appropriate legal advice throughout the process of either starting a company that will offer franchises or throughout the process of buying a franchise that you do hope to operate into the future. There are attorneys that specialize in franchising and franchises. You definitely will want to make certain that you engage such a specialist. tnomeralc web design toys

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