One of the highlights of my career as a New York franchise lawyer has been my involvement with the American Bar Association’s (ABA) Forum on Franchising—especially serving on its Governing Committee and co-editing the book Franchise Relationship Laws: A Practical Guide.
As my term on the ABA FOF Governing Committee was ending, I was excited to be asked to lead the Guide’s production along with Elliot Ginsburg, a talented franchise litigator and name partner of Garner, Ginsburg & Johnsen, P.A. in Minnesota.
Available for members and non-members in both physical and digital formats, the Guide explores the statutory framework that governs the relationship between franchisors and franchisees in jurisdictions across the United States. It provides a detailed, state-by-state examination of franchise relationship laws—focusing on critical issues such as:
- Restrictions on termination and nonrenewal,
- Transfer rights, and
- The duties that franchisors and franchisees owe one another once the initial agreement is signed.
Drawing from real-world experience by the contributors and editors, the Guide is designed to be more than a reference book—it is a practical tool for lawyers on both sides of the transaction, as well as for franchise clients. For franchisor counsel, the Guide underscores the importance of becoming familiar with franchise relationship laws, as these laws may significantly impact the franchisor’s ability to exercise its rights under the franchise agreement. For franchisee attorneys, it offers clarity on statutory protections and negotiation strategies that can help preserve business stability and long-term value.
Each contributor brought their unique perspective due to their work in their respective states. This range of input, coupled with the editors’ familiarity with these issues via representing franchisors and franchisees, along with their litigation experience, ensured that the Guide addressed the nuanced, real-world challenges attorneys encounter daily. Franchise relationship laws often differ in subtle but meaningful ways, and understanding those variations can prevent costly disputes and foster healthier franchisor-franchisee partnerships.
On Healthy Franchise Relationships
The ABA and other organizations have published several valuable books on franchising, and the focus on relationship laws was a key topic to be addressed.
Franchise systems are key drivers of the U.S. economy, with the International Franchise Association (IFA) estimating that in 2024, franchises employed 8.8 million workers and had a total output of $896.9 billion. With this in mind, franchisors need to be compliant with various state and federal laws, and thus, should have an open line of communication with their franchise lawyer.
Healthy franchise relationships can be difficult to establish because the franchisor typically has the advantage from the outset. As detailed in the Guide, franchise lawyers can help forge a healthy relationship when both parties are committed to building the brand.
A tried and true way for a franchisee and their franchise lawyer to bring balance to this relationship is to speak with other operators in the system, as detailed in FDD Item 20. By connecting with others currently and previously in the franchise system, franchisees will receive pragmatic and honest information about the franchisor and its industry.
In addition to helping set the baseline for a solid franchisor-franchisee relationship, the Guide empowers lawyers to ensure franchisors do not inadvertently violate franchise relationship laws and for franchisees to know that they have rights beyond the franchise agreement.
Judging a Book by Its Intent
Franchise Relationship Laws ultimately reflects the collaborative expertise of many seasoned practitioners who share a common goal: strengthening the franchise industry through clarity, education, and balanced insight. I’m proud to have participated in organizing a resource that will support franchise lawyers nationwide and also enhance fairness and transparency across the legal profession and the franchising industry.
Franchise Relationship Laws is an invaluable resource for franchisors, franchisees and multi-unit operators. Through the legal lens, it explores the complexities of the franchise relationships, state legal compliance, and system growth.
The Guide makes a great gift for the franchise stakeholder in your life.
Contact Lusthaus Law
Lusthaus Law’s website is a resource for New York franchisors and franchisees. We have published two downloadable and complimentary e-books, and our Insights blog is regularly updated to reflect industry trends and recent achievements in client representation.
Contact us today to learn more about how Lusthaus Law P.C. can help you navigate a clear path for your franchise’s successful future.
