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The National Minority Franchising Initiative was underwritten in 2006 by the 20 pre-eminent franchisors whose logos are noted on this website. Read more...
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Laws and Regulations Lingo

Now for some franchise law...

Franchise industry regulation varies from state to state, and you should therefore do some extensive research into the laws that apply in your state. What is considered franchising by your state? What documentation does your state require of franchisors to help protect you?

1. Regulation of Franchising
Each of the 16 states that have separate franchise registration statutes have their own definitions of franchising, which also differ from the one the Federal Trade Commission (FTC) uses. The variance again demonstrates the need for you to do research and understand the laws governing your particular state.

Known as the "FTC Rule," the FTC requires franchisors to disclose certain facts to franchisees before closing a sale. There are some notable exceptions to this law. For example, some trade shows and franchises covered by informal advisory opinions issued by FTC staff are specifically exempt from the FTC Rule. Again, it is advised for you to obtain the expertise of a franchise attorney.

Please visit our Resource Center for FTC contact information and for franchise attorney listings.

Next: Franchise Lingo: Legal Documents


  Franchise Spotlight
RE/MAX
RE/MAX
The RE/MAX real estate franchise network is a global system of more than 7,000 offices worldwide, engaging more than 110,000 members. RE/MAX sales associates lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management.


Meineke
Meineke
Meineke has been offering superior automotive repair services at discount prices for over 30 years. We are a nationally-recognized brand with a proven system. Brand recognition, comprehensive training and on-going technical and operational support are some of the benefits enjoyed by Meineke franchisees.


Accor
Accor
With more than 4,000 hotels worldwide, Accor is the industry leader. With well-established brands, Accor has a quality product, proven operational results and is easy to operate. Many open markets are available.


HoneyBaked Ham
HoneyBaked Ham
Whether it's the hand-selected, fully prepared, spiral-sliced, tender HoneyBaked Ham or our gently roasted and sweetly glazed turkey breast, you can be sure that it will be perfect every time. HoneyBaked Ham has over 400 retail locations nationwide.