Texas ranks among the top states for franchise activity. The combination of population growth, business-friendly regulations, and no state income tax attracts both franchisors expanding their systems and entrepreneurs buying franchise opportunities. But franchising involves complex legal requirements that trip up the unprepared. The Federal Trade Commission’s Franchise Rule mandates detailed disclosures before any sale. Franchise agreements typically run 50 pages or more, filled with provisions that protect franchisors far more than franchisees. Without legal counsel, buyers often discover too late that they agreed to unfavorable terms.
Texas is a one-time filing state, not a registration state. Franchisors must file basic business information with the Texas Secretary of State before offering franchises, but the state does not review or approve Franchise Disclosure Documents. This means Texas franchisees cannot rely on state oversight to catch problematic offerings. The FTC Franchise Rule still applies, requiring franchisors to provide a 23-item disclosure document at least 14 days before any agreement is signed or money changes hands. Violations of these rules can void agreements and create grounds for rescission or damages.
What Franchise Law Attorneys Handle
FDD and Franchise Agreement Review
The Franchise Disclosure Document contains 23 required items covering the franchisor’s litigation history, bankruptcy filings, fees, financial performance representations, and franchisee obligations. Attorneys analyze FDDs to identify red flags: excessive litigation, high franchisee turnover, unrealistic earnings claims, or hidden costs. They review franchise agreements to explain renewal rights, termination provisions, transfer restrictions, and non-compete clauses that will bind you for years.
Franchise Disputes and Termination
Disputes arise over territory encroachment, inadequate franchisor support, system changes that increase franchisee costs, and disagreements about compliance with brand standards. When franchisors threaten termination, franchisees need counsel who understands whether proper notice was given and whether alleged defaults are curable. Attorneys negotiate resolutions, defend against improper terminations, and pursue claims when franchisors breach their obligations or make fraudulent misrepresentations.
Franchisor Formation and Compliance
Businesses ready to franchise their concepts must create compliant FDDs, register in states that require it, and develop franchise agreements that protect the brand while attracting qualified franchisees. Attorneys draft these documents, advise on franchise structures, ensure ongoing compliance with disclosure update requirements, and help franchisors avoid the relationship problems that generate litigation.
Franchise Sales and Transfers
Selling a franchise typically requires franchisor consent and compliance with transfer provisions in the franchise agreement. Buyers need the same due diligence review as initial purchasers. Attorneys guide both sides through transfer requirements, negotiate terms, and ensure proper documentation protects the parties’ interests.
How to Choose a Franchise Law Attorney
Franchise-specific experience. Franchise law combines contract, regulatory, and business litigation expertise in ways that general business attorneys rarely encounter. Choose lawyers who handle franchise matters regularly, not occasionally.
Franchisor or franchisee focus. Most franchise attorneys represent primarily one side. Franchisee-side attorneys understand the power imbalances and common franchisor tactics. Franchisor-side attorneys know how to structure systems that minimize disputes. Some attorneys represent both sides, bringing balanced perspective but potential conflict concerns in disputes.
FTC Rule knowledge. The federal Franchise Rule contains specific requirements that franchisors must follow. Attorneys should understand disclosure timing requirements, what constitutes a franchise under the Rule, and when exemptions apply.
Litigation capability. When negotiations fail, you need attorneys who can pursue or defend claims effectively. Ask about franchise litigation experience, not just 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
Franchise legal fees vary by service type. FDD review for prospective franchisees typically costs $1,500 to $3,500 as a flat fee, including consultation to discuss findings. Franchise agreement negotiation may add $1,000 to $2,500 depending on complexity and franchisor flexibility. For franchisors, initial FDD preparation costs $15,000 to $35,000 depending on system complexity, with annual updates running $3,000 to $7,500. Litigation proceeds hourly at rates of $300 to $550 for most franchise attorneys, though some franchisee-side attorneys handle certain claims on contingency.
Frequently Asked Questions
Is Texas a franchise registration state?
No. Texas requires only a one-time filing with the Secretary of State, not registration or approval of your FDD. However, franchisors must still comply with the federal FTC Franchise Rule, which requires providing a compliant FDD at least 14 days before signing any agreement or accepting any payment. Some states where franchisors also operate do require registration and review.
Can I negotiate a franchise agreement?
Many terms are negotiable, though franchisors vary in flexibility. Common negotiation points include territory size, renewal terms, transfer rights, and personal guarantee scope. Franchisors typically resist changes to core operational requirements or royalty structures to maintain system uniformity. An experienced franchise attorney knows which terms are worth pursuing and how to approach negotiations professionally.
What recourse do I have if the franchisor made misrepresentations?
If a franchisor made material misrepresentations in the FDD or during the sales process, you may have grounds for rescission of the agreement or damages. Common claims involve earnings representations that proved false, undisclosed litigation, or promises about support that never materialized. Document everything and consult a franchise attorney promptly, as statutes of limitations can be short.
Last Updated: January 2026
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. Fee estimates are approximations only and actual costs may vary significantly. 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.