The Legal Aspects of the Franchise Relationship

Authors

  • Richard J. Hunter

  • Hctor R. Lozada

Keywords:

security; franchise disclosure document; antitrust; franchise contract; negotiation and drafting

Abstract

In Part II of our study, the authors deal with the myriad of legal issues that pervade the franchise relationship. Of particular interest are the differences between the sale of a franchise and the sale of a security; an analysis of the elements of the critical Franchise Disclosure Document (FDD); a detailed look at the franchise contract; some "special protections" available to automobile dealers and petroleum dealers in the United States; and the relationship between franchising and U.S. antitrust law (which provides a fertile area of litigation between franchisors and franchisees). The purpose of Part II is to inform the franchisee about the issues that will require professional attention by a competent and well-versed franchise contract advisor and legal expert.

How to Cite

The Legal Aspects of the Franchise Relationship. (2013). Global Journal of Management and Business Research, 13(33), 1-14. https://journalofbusiness.org/index.php/GJMBR/article/view/

Author Biographies

Richard J. Hunter

Dr. Hector R. Lozada is an Associate Professor of Marketing and Director of the Institute for International Business at the Stillman School of Business, Seton Hall University. He earned his Ph.D. in Marketing from Seton Hall University, where he has since dedicated his academic career. Dr. Lozada's research interests span the legal aspects of franchising, international business, and marketing strategy. He has contributed to scholarly discourse with works such as "The Legal Aspects of the Franchise Relationship" and "Sex Discrimination, the Civil Rights Act of 1964, Equal Pay, and Title IX as Applied to the Women's National Soccer Team." Recognized as a Fellow by the Global Journals and Membership Body, Dr. Lozada continues to mentor students and advance research in his field.

Hctor R. Lozada

Dr. Hector R. Lozada is an Associate Professor of Marketing and Director of the Institute for International Business at the Stillman School of Business, Seton Hall University. He earned his Ph.D. in Marketing from Seton Hall University, where he has since dedicated his academic career. Dr. Lozada's research interests span the legal aspects of franchising, international business, and marketing strategy. He has contributed to scholarly discourse with works such as "The Legal Aspects of the Franchise Relationship" and "Sex Discrimination, the Civil Rights Act of 1964, Equal Pay, and Title IX as Applied to the Women's National Soccer Team." Recognized as a Fellow by the Global Journals and Membership Body, Dr. Lozada continues to mentor students and advance research in his field.

References

Automobile Dealers (1988) Franchise Act ("The Automobile Dealer.

Rupert Barkoff (2013) A Look at Franchise Regulation from Ground Level to 30,000. 32, 153-155.

Edward Cavanagh (2005) Antitrust Remedies Revisited. 84(1), 147-225.

(1950) Cellar-Kefauver Act (Anti Merger Act of 1950).

Henry Cheeseman (2013) Business Law.

(1914) Clayton Antitrust Act of 1914. 2, 12-27.

Robert Emerson, Uri Benoliel (2012) Are Franchisees Well-Informed? Revisiting the Debate over Franchise Relationship Laws. 76, 193-216.

Federal Trade Commission Act of 1914 (1914) Federal Trade Commission Act of 1914. 41-58.

Sean Flaim (2012) Copyright Conspiracy: How the New Copyright Alert System May Violate the Sherman Act. 2, 142-187.

Franchise Rule (2007) Franchise Disclosure Rule. 72(61), 5544-1557.

Franchise Rule Compliance Guide. http://www.ftc.gov/bcp/edu/pubs/business/franchise/bus-70.pdf

(1976) Hart-Scott-Rodino Antitrust Improvement Act of 1976.

Susan Heyman (2013) The Quiet Period in a Noisy World: Rethinking Securities Regulation and Corporate Free Speech. 74(2), 189-239.

Bruce Hunter (1983) Trade Regulation- Antitrust Laws- Prices- Professions- Medical Profession- Maximum Fee Agreements by Physicians are Per Se Violations of the Sherman Act. 52, 253-266.

Richard Hunter, Jr (2013) A Primer on Franchising in the United States: A Vehicle for Economic Mobility. 13, 49-58.

Richard Hunter, Anthony Jr, Loviscek (1997) Insider Trading Since Carpenter: The Misappropriation Theory and Beyond. 41(1), 79-123.

Richard Hunter, Jr, Susan John H. Shannon (2011) Regulation: A Historical Perspective and Discussion of the Impact of the Commerce Clause and the Fourteenth Amendment and the Move to Deregulate the American Economy. 21, 137-164.

Robert Lande (2013) A Traditional and Textualist Analysis of the Goals of Antitrust: Efficiency, Preventing Theft from Consumers, and Consumer Choice. 81, 2349-2403.

Robert Lande, Josh Davis (2011) Comparative Deterrence from Private Enforcement and Criminal Enforcement of the U.S. Antitrust Laws. 315-390. https://doi.org/10.2139/ssrn.1565693

Lewis (2013) http://-www.franchise-info.ca/directory-of-franchise-attorn-eys/warren-lee-lewis.html

William MacLeod (1984) Interlocks at the Federal Trade Commission: Room for Reason in a "Per Se. 53, 1077-1085.

Jesse Markham, Jr (2012) Sailing A Sea of Doubt: A Critique of the Rule of Reason in United States Antitrust Law. 17(3), 591-664.

(1937) Miller-Tydings Amendment to the Sherman Act. 693.

Danielle Paschal (2011) Market Realities Do Not Embody Necessary Economic Theory: Why Defendants Deserve a Safe Harbor Under Section 2 of the Sherman Act for Exclusive Dealing. 46(1), 249-288.

Petroleum Act (1996) Petroleum Marketing Practices Act. 2801-2806.

W. E. (1936) Robinson-Patman Act of 1936 (Anti Price Discrimination Act).

(1933) Securities Act of 1933.

(1934) Securities Exchange Act of 1934. 1.

The Legal Aspects of the Franchise Relationship

Published

2013-09-26

How to Cite

The Legal Aspects of the Franchise Relationship. (2013). Global Journal of Management and Business Research, 13(33), 1-14. https://journalofbusiness.org/index.php/GJMBR/article/view/