The U.S. marketplace offers international franchisors enormous opportunities to expand their brands and enhance their profits. The United States is open, fertile territory for all types of franchises and franchising operations. The American people welcome cultural diversity and appreciate foreign customs and traditions. As a result, many successful international franchisors expand into the world’s largest economy.
Even when American consumers feel the pinch from a long, deep recession, many still spend on goods and services from other countries.
The U.S. federal government, and the governments of many U.S. states, have laws that govern franchising. These laws are complex.
The U.S. Federal Trade Commission (the “FTC”) established a set of franchise rules. These rules are referred to, collectively, as the “FTC Franchise Rule” or, more simply, as the “Franchise Rule.” The Franchise Rule requires most franchisors to provide prospective franchisees with information. This information is shown in a “Franchise Disclosure Document,” or an “FDD.” The Franchise Rule applies in all jurisdictions in the Unites States.
State franchise laws are in addition to the federal Franchise Rule, and they may differ substantially from its requirements. Some of the states that have franchise laws are large commercial centers like California, Illinois, New York, and Virginia. Many of these states require franchisors to register their franchise offerings in the state, or to obtain exemptions from registration. These states have regulators who, in most cases, review the franchise offering for compliance with applicable law.
Even states that do not have franchise laws may require franchisors to obtain exemptions from business opportunity laws, or to file information with the state. Some of the states that require exemption are also large commercial centers; they include Florida, Michigan, and Texas.
A skilled and experienced franchise attorney can help you avoid violating U.S. federal and state laws. Rick Johnson of The Johnson Franchise Law Firm can draft the legal documents that comply with the federal Franchise Rule and state franchise laws. He can obtain the proper registrations or exemptions, and can file the proper documents, to help smooth your development of a successful franchising operation in America. Rick has handled franchise transactions in all 50 U.S. states, including California, Florida, Illinois, Michigan, New York, Virginia, and Texas, and in parts of the U.S. that are not states, including Guam, Puerto Rico, the U.S. Virgin Islands, and Washington, D.C.
If you violate U.S. federal and state franchise laws, you expose your business to expensive litigation, damages, and penalties. It pays to have a skilled and experienced franchise lawyer on your side. At The Johnson Franchise Law Firm, we help you develop your franchise system, comply with U.S. federal and state laws, reduce your costs, and minimize your risk. We can help you plan for international franchising and prove its benefits. Although American franchise laws are extremely complex, we can help you meet these challenges.
At The Johnson Franchise Law Firm, we focus on franchise law, including assisting international franchisors that want to enter the U.S. marketplace. With over 20 years’ experience, franchise attorney Rick Johnson understands the intricacies of franchise law and helps you avoid costly pitfalls. To take your international business to the next level in the United States, please contact The Johnson Franchise Law Firm today.