Legal Question in Business Law in Idaho

In my business, we are selling Franchises around the country. My corporate office is located in Idaho, so, my question is this: Do I need one set license agreement for every franchise we sell nationwide, or do we need one for each individial state? For instance, when I sell a franchise in Florida, do I need a Florida License Agreement?


Asked on 3/13/12, 12:35 pm

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

The short answer is that you NEED to speak with an attorney who is knowledgeable about franchise law (that would be someone like me).

Interstate franchises have a delicate line to toe (yes, that's spelled correctly; one "toes the line," not "tows the line") in that they must comply with federal franchise law AND with the franchise law of each state into which they enter. This CAN be done with one Master Agreement, but but a franchise agreement is DECIDEDLY NOT do-it-yourself law. You NEED a lawyer. Messing up a franchise agreement can land the franchisor � you � in bankruptcy and very possibly in jail for a very long time (the charges could include antitrust violation, securities fraud, and possibly others ... that represents years of your life that cannot be replaced; that's definitely worth the few $thousand to have the master franchise agreement drawn up correctly).

THIS POST CONTAINS GENERAL INFORMATION AND IS INTENDED FOR ENTERTAINMENT PURPOSES ONLY. IT DOES NOT CONSTITUTE LEGAL ADVICE, NOR DOES IT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP. FOR LEGAL ADVICE ON YOUR PARTICULAR MATTER, CONSULT YOUR ATTORNEY.

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Answered on 3/13/12, 3:59 pm


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