Franchise Agreements
A franchise agreement grants the right to operate a business using the franchisor's brand, systems, and methods. These agreements are regulated by the FTC Franchise Rule and Florida's franchise protection statutes.
Key Terms
- Territory: Geographic area of operation (exclusive or non-exclusive)
- Franchise fee: Initial payment ($1,000-$50,000+)
- Royalties: Ongoing payments (4-8% of gross revenue)
- Marketing fund: Required contributions (1-3% of revenue)
- Term: Agreement length and renewal rights
- Standards: Operational requirements and quality controls
Florida Regulation
- Florida Franchise Act (§817.416) prohibits unfair practices
- FTC Franchise Rule requires FDD disclosure 14 days before signing
- No state registration requirement (unlike CA, NY)
- FDUTPA applies to franchise relationships
Related Terms
- Contract — The franchise agreement itself
- Equity — Franchise value and goodwill
- Encumbrance — Non-compete restrictions
Barnes Walker Business Law
Barnes Walker's attorneys review and negotiate franchise agreements for Florida business owners. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC