Legal Risks in Franchising

2. Florida Legal Context

In Florida, legal risks in franchising come from both federal franchise law and state consumer protection law:

• FTC Franchise Rule (16 C.F.R. §436)
  • Requires disclosure of the Franchise Disclosure Document (FDD) before sale. Failure to comply can trigger federal penalties and private lawsuits.
• Florida Deceptive and Unfair Trade Practices Act (FDUTPA, Fla. Stat. §501.201)
  • Prohibits franchisors from using deceptive or unfair practices in selling or operating franchises.
  • Franchisees may sue for damages if misled by false promises or hidden fees.
• Contract Law
  • Florida courts strictly enforce franchise agreements unless unconscionable.
  • Non-compete clauses, renewal provisions, and termination rights are often disputed.
• Intellectual Property
  • Trademarks are central to franchise operations. Misuse by either party can result in litigation.

3. Real-World Application

Examples of franchise legal risks in Florida:

• A Tampa franchisee sues after the franchisor misrepresented startup costs in the FDD.
• A Miami franchisor enforces a non-compete clause against a former franchisee who started a competing business.
• An Orlando franchisee faces termination for failing to follow brand standards, sparking a contract dispute.

4. Why It Matters for Business Owners

Franchising carries unique risks that require careful planning and legal oversight.

Why it matters:

• For franchisees: You may be locked into long-term, non-negotiable agreements with strict obligations.
• For franchisors: Missteps in disclosure or contract drafting can trigger lawsuits or regulatory penalties.
• For both: Disputes are expensive, and most agreements require arbitration or litigation in the franchisor’s home state.

Common risks Florida businesses face:

• Inadequate or misleading FDD disclosures.
• Disputes over royalties, marketing fees, or technology charges.
• Termination or non-renewal of agreements.
• Litigation over non-compete enforcement.
• FDUTPA claims for deceptive sales practices.

5. Real-World Florida Examples

• A Sarasota franchisee prevailed in court after proving the franchisor misled them about profitability.
• A Jacksonville franchisee was forced to shut down after breaching quality control requirements outlined in the agreement.
• A Fort Lauderdale franchisor successfully enforced a non-compete clause, preventing an ex-franchisee from operating a competing store in the area.

6. How Our Law Firm Can Help

At Black Rock Trial Lawyers, we help entrepreneurs navigate and mitigate legal risks in franchising. Our services include:

• Reviewing FDDs and franchise agreements for red flags
• Negotiating contract terms to protect franchisees
• Drafting compliant agreements for franchisors
• Advising on franchise termination, renewal, and resale rights
• Representing businesses in FDUTPA claims and franchise litigation

We protect your investment and your brand by identifying risks early and crafting legal strategies to avoid disputes.

7. FAQs (Frequently Asked Questions)

Q: What’s the biggest legal risk in franchising?
A: Misrepresentation or hidden fees in the FDD, leading to lawsuits and financial losses.

Q: Can a franchisor terminate me at will?
A: No. Termination must follow the agreement’s terms, but those terms often heavily favor the franchisor.

Q: Are non-compete clauses in franchise agreements enforceable in Florida?
A: Yes, if they are reasonable in scope, time, and geography.

Q: What if I discover the franchisor lied about profits?
A: You may have a claim under FDUTPA or federal franchise law.

Q: Why hire a lawyer before buying or selling a franchise?
A: Franchise law is complex, and agreements are long-term. A lawyer ensures compliance, protects your rights, and reduces costly legal risks.

8. How to Retain Our Law Firm

We offer multiple access points tailored to your needs:

• Flat-Fee Retainers: Set pricing based on project scope (quoted after your consultation)
• 1-Hour Strategy Consultations: A high-impact session to assess your issues, answer questions, and develop a legal roadmap. Pricing starts at $500.00.
• 3-Hour Master Strategy Sessions: A deep dive analysis with detailed, actionable solutions tailored to your business challenges
• Flagship Product: BELAW – Business + Entrepreneurship Law Advisor Program (Read below)

All services are available in-person, by phone, or virtually.

9. Flagship Product: BELAW – Business + Entrepreneurship Law Advisor Program

Our flagship service is the BELAW Membership – Business & Entrepreneurship Law Advisor Program. This is an exclusive, members-only, 12-month ON-DEMAND legal and business support program at a predictable flat monthly fee, tailored to each business client—regardless of company size.

BELAW is open to business owners, entrepreneurs, for-profit companies, non-profits, and foreign investors. Our members range from startups and nonprofits to established businesses.

At the core of BELAW is our P.O.N.C.E. methodology, developed by Attorney Gil Sanchez, to help businesses not just stay protected—but grow strategically.

What you get with BELAW:

• On demand strategic legal consultations with Attorney Gil Sanchez
• Document review and compliance audits
• Guidance on contracts, leasing, employment, and liability
• Drafting Collection Notices, Cease & Desist Letters and Confidentiality Agreements
• Proactive legal support to mitigate lawsuits and reduce risk exposure
• Strategic input on revenue-generating decisions like expansion, licensing, and joint ventures
• Entrepreneur coaching and a growing library of business education resources
• Litigation retainer and hourly rate discounts

We’re available when you need us—on demand, without hourly billing.

We make it easy to get started:

• Call or text us at (813) 254-1777
• Or fill out the secure contact form below

A member of our team will respond promptly to schedule your consultation.

10. How to Contact Our Law Firm to Retain

We make it easy for you to retain us:

• Call or text: (813) 254-1777
• Email: info@blackrocklaw.com
• Or submit your request using the form below

Our team will promptly follow up to confirm availability and next steps.

11. Who You Are Hiring

When you hire our firm, you’re not just hiring a lawyer — you’re securing the insight, grit, and expertise of Attorney Gil Sanchez.

A proud double Gator, Gil earned both his undergraduate and law degrees from the University of Florida — one of the top public universities in the country. Since 2004, he has built a reputation as a formidable business and trial attorney, successfully trying cases before juries in both Florida state and federal courts.

Gil’s legal practice is deeply informed by real-life experience. He launched his first business at age 13 and has continued to build, lead, and advise companies ever since. He’s a licensed business broker (since 2007), an adjunct professor of entrepreneurship at St. Petersburg College, and a trusted advisor to entrepreneurs, professionals, and business owners across Florida.

He’s also an inventor, author, and public speaker — holding a U.S. utility patent and federal trademark. His invention was featured in TIME Magazine’s Best Inventions of 2023, and his legal insights have appeared on CNN, ABC’s 20/20, and other national platforms. Raised by Colombian parents in West Virginia and fluent in Spanish, Gil brings cultural fluency, resilience, and a fighter’s mindset to every client matter.

Above all, Gil is a devoted family man — happily married and the proud father of three beautiful children. His commitment to family shapes the way he practices law: with empathy, integrity, and a relentless drive to protect what matters most.

At Black Rock Trial Lawyers, you’re not just getting a legal technician — you’re hiring a battle-tested strategist who understands both the courtroom and the real world. That’s who’s fighting for you.

12. The Law Firm’s Geographical Reach

We proudly represent businesses across all counties in Florida. With the power of virtual consultations, online filings, and remote court access, we can support your legal needs anywhere in Florida—without compromising service quality.

Our main office is in South Tampa, Florida, with a satellite office in South Florida – Miramar, Florida.

From Miami to Jacksonville, Pensacola to Key West—Black Rock Trial Lawyers is here to help Florida businesses thrive.

13. Disclaimer

The information provided on this website is for general informational purposes only and is not intended to be, nor should it be construed as, legal advice. Every individual and business matter involves unique facts and circumstances that must be carefully evaluated. Additionally, Florida laws, including statutes and case law, are subject to frequent changes, and the information presented here may not reflect the most current legal developments. For a formal legal opinion or advice specific to your situation, you must consult directly with an attorney at our firm. No attorney-client relationship is formed by viewing this site or by contacting our office through this web.