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  • Writer's pictureMallory Law Office

Franchise Agreements, Part 2

In addition to carefully reviewing a franchise agreement, a potential franchisee has much more information to examine before purchasing a franchise.

Federal law requires that a franchisor provide detailed written disclosures to a potential franchisee. These disclosures include information on franchise fees, obligations of the franchisee, and more.

Ohio law also governs franchise relationships. In 2013, the Ohio legislature updated the Business Opportunity Purchasers Protection Act, which regulates many franchise agreements in the state. Similar to the federal rule, Ohio also requires detailed disclosures to the franchisee. Ohio also allows franchisees to sue the franchisor for damages or a rescission of the agreement, along with other opportunities for relief.

The Federal Trade CommissionOhio State Bar Association, and Attorney General Mike Dewine have more answers for potential franchisees.

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