North Carolina Franchise Law Firm Focuses on Business Clients

Chapel Hill Business Attorneys Experienced in Franchise Matters

Franchise law is extremely complex. There are federal laws governing franchising, and some states also regulate it, although North Carolina is not one of those.

Who Regulates Franchising in North Carolina?

The Federal Trade Commission (FTC) regulates franchising throughout the U.S., including North Carolina, and the FTC Franchise Rule applies everywhere in the nation.

There are three general categories of laws regulating franchises, including:

• Disclosure laws, which regulate things like required pre-sale disclosures, prohibited franchise sales practices, and the mandatory cooling-off period before franchise sales.
• Registration laws, which require things like the registration of a franchise, the registration of franchise salespersons, and the registration of franchise advertising.
• Relationship laws, which govern certain aspects of the franchisor and franchisee relationship, including grounds for terminating a franchise, notice and cure periods before termination, and grounds for not renewing a franchise.

Penalties for Violating Franchise Laws

Governmental penalties for violating franchise laws can be stiff, and often include:

• Fines
• Permanent bans on franchising
• Freezing of assets
• Money damages awarded to victims
• Jail sentences

These penalties can be applied to the franchisor and to its officers, directors, and managers who control the franchisor’s activities.

Contact Our Chapel Hill North Carolina Franchise Law Firm Today

Are you in need of legal advice regarding a franchise matter? The experienced attorneys at Law Offices of Robert Crawford are committed to representing business professionals throughout Chapel Hill in a variety of business issues, including franchising. Contact us online or call 919-296-8508 to schedule your initial case evaluation today.