What is a legal topic more people in franchising need to know about?
"I think there are a couple topics. First, artificial intelligence and how brands and their franchisees are using it. There needs to be some shared vision and purpose around the use of AI, otherwise you have parties going in various directions. Brands need to clearly define how they expect and/or limit their franchisees use of it to ensure that confidential information is not unintentionally being disclosed.
Second, at the unit level, the click-to-cancel laws at both the federal and state level. Franchisees must be aware of these laws and how they may affect their consumer offerings, if at all."
—Joe Fittante, Larkin Hoffman
Ritchie Taylor, Manning Fulton
"The possibilities and pitfalls from use of artificial intelligence by both franchisors and franchisees."
—Ritchie Taylor, Manning Fulton
"Franchising is both a body of law and a business model, which is what makes it such a dynamic practice. Further, franchising is affected by many other areas of law, and people in franchising need to know about changes in the law that may affect the landscape. For example, in Canada, there are recent and pending changes to French language laws, competition restrictions, and consumer protection regulations that will change the way franchisors and franchisees do business in Canada."
– Cassandra Da Re, Dale & Lessmann
"From a franchisee perspective, reviewing their franchise agreement for renewal timing and issues and to plan accordingly. Also, the issue of contractual statutes of limitation and how they may affect the legitimate claims of franchisees."
—Harris Chernow, Reger Rizzo Darnall
"Bankruptcy. There were great brands filing for bankruptcy in 2025, including TGI Fridays, Party City and Vitamin Shoppe, to name just a few. Many franchisees are also seeking bankruptcy protection."
—Deborah Coldwell, Haynes and Boone
'Attempts on the part of franchisors to block sales to reasonably-qualified buyer candidates."
—John Holland, Dady & Gardner
Brian Schnell, Faegre Drinker
"How to effectively resolve franchise disputes early rather than engaging in protracted litigation. This topic is incredibly important for emerging franchisors where one knock-down, drag out lawsuit can set the entire system back for years."
– Brian Schnell, Faegre Drinker
"While the excitement of franchising often focuses on initial investment, the legalities of renewal and termination are crucial for long-term success. Franchise agreements outline specific terms, including conditions for renewal, which franchisees must understand to plan for the future. This includes renewal fees, performance requirements and notification procedures.
Agreements also detail grounds for termination by either party, ranging from unmet performance standards to insolvency. Both franchisors and franchisees should meticulously review these clauses before signing and consult legal counsel to fully grasp their rights and obligations."
—Eric Friedman, Paris Ackerman
"System changes in franchise systems, particular new or revised fees."
—Robert Lauer, Haynes and Boone
"How terrible franchise agreements are and that they’re continuing to get worse and worse for franchisees."
—Elliot Ginsburg, Garner, Ginsburg & Johnsen
