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Franchise Law
Franchise law governs the franchising or licensing of the right to use a particular name, sell a particular product or service and usually an accompanying system of doing business. The franchisor, for example let's say it's a large restaurant chain named "Eaters," wants to expand the number of its stores. One way of doing so is to "franchise" the right to own and operate an "Eaters" restaurant to third parties. Let's assume Mary Smith wants to open an "Eaters" restaurant in her town. Mary and "Eaters" will enter into a Franchise Agreement under which Mary is the "franchisee" and she agrees to operate an "Eaters" restaurant in accordance with specific guidelines set forth in the Franchise Agreement. She will also be required to pay royalties to Eaters - royalties are a percentage of her revenues or profits - in exchange for her franchise rights. For its part, "Eaters," the franchisor, will often agree to support the marketing of "Eaters" restaurants - through advertising and marketing - and to provide certain supplies and other amenities to Mary.
Once a franchise agreement has been signed and Mary's "Eaters" restaurant begins operating, Mary may have a dispute under the franchise agreement. For example, Mary may believe that the owner of the "Eaters" name and chain is not fulfilling its obligations under the franchise agreement.
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