What are the legal issues of franchising?

A good relationship between the franchisor and franchisee is critical for the success of both parties. Since franchising establishes a business relationship for years to come, the foundation must be carefully built by having a clear understanding of the franchise program. Unfortunately, understanding the legal language of franchising can be daunting. Franchising is governed by federal and state laws that require franchisors to provide prospective franchisees with information that describes the franchisor-franchisee relationship. The two main franchising legal documents are the UFDD and the Franchise Agreement.