Franchise Law Attorneys in Texas

Buying or selling a franchise is a regulated transaction. Unless the sale qualifies for one of the Rule’s exemptions (16 C.F.R. § 436.8), federal law requires the franchisor to give a prospective franchisee a Franchise Disclosure Document (FDD) at least 14 calendar days before the franchisee signs a binding agreement or pays any consideration (16 C.F.R. § 436.2), and the FDD must cover 23 prescribed items (16 C.F.R. § 436.5). Franchise agreements often run dozens of pages and are drafted by the franchisor, so the terms usually favor the franchisor unless they are reviewed and negotiated.

Texas does not register or review franchise offerings. A franchise that complies in all material respects with the FTC Franchise Rule is excluded from the Texas Business Opportunity Act if, before offering or selling a franchise in Texas, the franchisor files a notice with the Secretary of State giving its name, the name it will do business under, and its principal business address (Business and Commerce Code § 51.003(b)(8)). Because no state agency reviews the FDD, franchisees cannot rely on Texas oversight to catch problems. The FTC enforces the Franchise Rule; a franchisee harmed by false or missing disclosures generally looks to state-law claims, such as fraud or the Texas Deceptive Trade Practices Act, for rescission or damages. Entity setup is covered in the guide to business formation attorneys in Texas, and franchise disputes that go to court in the guide to commercial litigation attorneys in Texas.

What Franchise Law Attorneys Handle

FDD and Franchise Agreement Review

The FDD covers the franchisor’s litigation and bankruptcy history, initial and ongoing fees, any financial performance representations, outlet turnover, and the franchisee’s obligations. Attorneys look for red flags, such as heavy litigation, high turnover, unsupported earnings claims, or costs that are not clearly disclosed, and explain the agreement’s renewal, termination, transfer, territory, and non-compete terms.

Disputes and Terminations

Disputes involve territory encroachment, support, system changes that raise franchisee costs, and compliance with brand standards. When a franchisor threatens termination, the questions are whether proper notice was given and whether the alleged default can be cured. Attorneys negotiate resolutions, defend against improper terminations, and pursue claims for breach or misrepresentation, often in arbitration if the agreement requires it.

Franchisor Formation and Compliance

A business that wants to franchise needs a compliant FDD, a franchise agreement, registration in states that require it, the Texas notice filing, and a process for annual updates. Attorneys draft these documents and advise on structure and ongoing compliance.

Franchise Resales and Transfers

Selling an existing franchise usually requires the franchisor’s consent and compliance with the agreement’s transfer provisions. Buyers need the same review as an initial purchaser.

How to Choose a Franchise Law Attorney

Franchise-specific experience. Franchise law combines contract, regulatory, and litigation issues. Choose an attorney who handles franchise matters regularly.

Franchisor or franchisee side. Most franchise attorneys mainly represent one side. Ask which, and how they handle potential conflicts.

Current FTC guidance. Ask whether the attorney follows FTC guidance and enforcement on undisclosed fees and on contract clauses that may restrict franchisees from reporting concerns to the government.

Litigation capability. Ask about franchise litigation and arbitration experience, not only transactional work.

Texas Franchise Law Attorneys

Hendershot Cowart P.C.

Location: Houston, Texas

Website: https://www.hchlawyers.com

Phone: 713-783-3110

This Houston firm has represented Texas franchisees since 1987, bringing over 100 years of combined attorney experience to franchise matters. The practice reviews FDDs and franchise agreements, helping prospective franchisees identify unfavorable terms before signing. When disputes arise, the firm handles termination defense, encroachment claims, disclosure violations, and franchisor fraud allegations. The attorneys emphasize prompt, personal attention that larger firms often cannot provide.

Practice Focus:

• FDD and franchise agreement review
• Franchise dispute resolution
• Termination and non-renewal defense
• Encroachment and territory disputes
• Exit strategy negotiation

Wilson Legal Group P.C.

Location: Dallas and Fort Worth, Texas

Website: https://www.wilsonlegalgroup.com

Phone: 214-509-7555

Wilson Legal Group represents both franchisors and franchisees in formation, transactions, and disputes. The firm helps businesses franchise their concepts, preparing FDDs and ensuring compliance with federal and state requirements. For franchisees, attorneys review agreements and advise on the legal implications of franchise ownership. The litigation team handles disputes including contract claims, trademark issues, and tortious interference matters domestically and internationally.

Practice Focus:

• Franchisor formation and FDD preparation
• Franchise agreement negotiation
• Trademark and intellectual property
• Franchise litigation
• International franchising

Dickinson & Wheelock P.C.

Location: Houston, Texas

Website: https://texasfranchiseattorney.com

Phone: 713-574-8780

This Houston firm represents both franchisors building their systems and franchisees evaluating opportunities. For new franchisors, the attorneys draft FDDs, structure franchise programs, and ensure compliance with registration state requirements. For prospective franchisees, the firm provides detailed FDD reviews to identify risks before signing. The practice emphasizes practical business advice alongside legal guidance, helping clients understand not just what agreements say but what they mean for daily operations.

Practice Focus:

• New franchisor development
• FDD drafting and updates
• Franchisee FDD review
• Ongoing franchisor compliance
• Franchise relationship counseling

Costs and Fees

FDD and franchise agreement reviews for prospective franchisees are often priced as flat fees. Franchisors pay to prepare the initial FDD and agreement and for annual updates and state registrations, usually on a project basis. Disputes and litigation are typically billed hourly, and some franchisee-side claims can be handled on contingency. Ask for a written quote that says what the review covers.

Frequently Asked Questions

Is Texas a franchise registration state?

No. Texas does not register or review FDDs. A franchisor that complies with the FTC Franchise Rule makes a one-time notice filing with the Secretary of State before offering franchises in Texas to fall outside the Texas Business Opportunity Act. Unless an FTC Rule exemption applies, the franchisor must still give a compliant FDD at least 14 calendar days before the franchisee signs a binding agreement or pays any money. Other states where the franchisor sells may require registration.

Can I negotiate a franchise agreement?

Often, to a degree. Territory, renewal terms, transfer rights, the scope of a personal guaranty, and development schedules are common points. Franchisors usually resist changes to royalty rates and core operating requirements to keep the system uniform. An attorney can tell you which requests are realistic.

What recourse do I have if the franchisor made misrepresentations?

The FTC enforces the Franchise Rule. A franchisee who relied on false earnings claims, undisclosed litigation, or other misrepresentations may have state-law claims, such as fraud or claims under the Texas Deceptive Trade Practices Act, that can support rescission or damages. Keep the FDD, sales materials, and communications, and consult an attorney promptly, because limitations periods and contractual dispute provisions can be short.

Sources

• FTC Franchise Rule: 16 C.F.R. § 436.2, obligation to furnish documents; 16 C.F.R. § 436.5, disclosure items; 16 C.F.R. § 436.8, exemptions
• Texas Business and Commerce Code: § 51.003, business opportunity definition and franchise exclusion

Disclaimer: This directory is provided for informational purposes only and does not constitute legal advice, endorsement, or recommendation of any attorney or law firm. Information about attorneys and law firms was compiled from publicly available sources and may not be current or accurate. We make no representations or warranties about the qualifications, experience, or quality of any attorney listed. Always verify attorney credentials with the State Bar of Texas, confirm current contact information, and conduct your own due diligence before hiring legal counsel. No attorney-client relationship is created by use of this directory.