There are a huge number of franchise regulations on the books but most of them are there to protect the franchisor.

Franchise regulations are an important part of what you must go through to buy a franchise and achieve your dream of great wealth as a small business person. It is easy to look at the huge volume of franchise law and think that, once again, the government is sticking their nose in somewhere that they do not belong. In reality, however, most franchise regulations are put in place not to protect the franchisee but to protect you as you work through the process of buying a franchise and getting that dream business that you have always wanted.

As you work interact with the company offering you a franchise, you will see what seems like volcano flow of franchise documents come your way.  Many of those documents are filling up your mailbox because franchise regulations require that a lot of disclosure happens before you fork over your hard earned money to buy a franchise and set up shop.

Disclosure is a seventy five cent word that simply means that the franchisee must inform you about everything that will happen as the franchising process takes place. Disclosure is also part of franchise regulations because they are required that you know about any and all requirements that you will have to live up to as a franchise owner.  You also have a right to know about what you can expect and demand of the franchising company so they hold up their end of the bargain too.

Understanding the distinctions between state and federal franchise regulations is important.

If things were not messy enough, there are different levels of franchise regulations to be aware of. Before you sign any franchise agreements, it pays to know where state level franchise regulations are in place and where the federal government steps in to add their two cents worth.

One reason to be alert about the different levels of franchise regulations is that if you run into a problem down the road and the franchisee is in another state. If that happens, there could be confusion on how responsible that company is to regulations that pertain to the state where you live. So it is smart to be aware of these distinctions and look for how they might impact the franchise agreements and other documents that you are reviewing as you prepare to buy a franchise and get moving on your exciting new business.

You should not hesitate to get some help form a qualified franchise lawyer or franchise consultant to sort the various franchise regulations out for you.  By engaging someone local, they will be well aware of the state franchise laws.  Your franchise gurus can also interact with the franchise legal brains at the franchising company to make sure they lay out the details of who is responsible for what. Then you can feel confident that you are going into this deal with someone watching your back.