What is franchise law?

Franchise law is the set of rules and regulations governing the arrangement between a franchisor and a franchisee in California. A franchisor is the owner of a brand, product, or service and grants permission for another (the franchisee) to use the brand, product, or service to conduct their own business. The franchisee pays a fee to the franchisor and in turn, the franchisor provides certain services, such as marketing and advertising, marketing assistance, and training. Franchise law ensures that the franchisor and franchisee are both aware of the responsibilities and obligations of the arrangement. Franchise law helps to protect both parties in the agreement by setting boundaries, outlining the terms and conditions of the agreement, and clearly specifying what each party can and cannot do. Franchise law also dictates the fees that the franchisee must pay to the franchisor and the royalties they must pay. Additionally, franchise law states that the franchisee must use the franchisor’s brand, products, or services according to the agreement, which is known as the franchise agreement. Finally, franchise law also dictates which disputes must be settled through mediation or arbitration, as opposed to a court.

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What is franchise law?

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