© 2004 West Legal Studies in Business A Division of Thomson Learning
Laws Governing Franchises
Governed by commercial sales and contract law. If franchise is primarily for the sale of goods, UCC Article 2 governs.
State and federal laws regulate franchising to protect franchisee.
The contract states parties’ rights and duties and can include an exclusive “territory” to market goods/services.
Case 35.1: Bixby’s Food Systems v. McKay (2002).