Franchise & Distribution Agreements

A franchise is the right to market or sell goods or services under the trademarked name, or patented process, of an established business.  A distributor is a company that buys and sells products of another company.

MacDonald Illig's legal team has significant experience in advising clients on all matters governing franchise and distribution agreements.  In some states, these relationships are governed by statute.  In other states, rules imposed by judges control the relationship.

Often, franchises or distribution arrangements are governed by detailed contracts negotiated by the parties.  Understanding the rights and responsibilities imposed by these agreements is essential to a successful relationship.  For example, these agreements specify what type of capital contribution is required, what type of assistance can be expected from the franchisor, what type of reports must be provided by the franchisee to the franchisor and how frequently those reports must be provided, and how much money the franchisor is to receive from the franchisee.  Many franchise or distribution relationships are successful, but careful planning and investigation is required before signing a franchise or distribution agreement.