The offer and sale of franchises are regulated by the FTC Rule, but the rule has minimum requirements for franchise sales professions. This may be changing because franchise companies rarely sell franchises directly.

Franchise companies typically utilize third-party franchise sales professionals to help find quality franchisees, those with the financial wherewithal to purchase and expand the franchise, and to cultivate the prospects to final purchase. Given the competition for franchises, finding the best franchisees requires skilled salespersons who comply with the FTC Rule for the offering and sale of franchises and other rules in some states. This article is an introduction to the world of franchise sales professionals. For more detail, I recommend E. Gerhards, H. Hillman and G. Wells, “The Latest on Working with Franchise Sales Organizations, Agents and Brokers,” ABA Forum on Franchising, November 2-4, 2022.

Prospects Buy Franchises From Many Sources

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]