A franchise is a branch of a company, whereby the company enters into an agreement with a third-party, and gives them full rights to operate their business under the company's name.  This includes the ability to run the business, sell the company's products, and advertise using the company's name, among other capabilities. 

In return, the company receives an up-front fee, as well as regular royalty payments from the franchisee which operates under the company's name.  Also, the person operating the franchise must abide by the customary practices used by the company.  This includes advertising campaigns and offering specific products, as well as using company logos, slogans, and other intellectual property of the company.

A franchise attorney from your state is able to inform you of the various state agencies and guidelines applicable in your state, as well as to prep you on the proper questions to ask the franchisor.  If you are the one actually selling to franchisees, then a franchise lawyer is also able to advise you on the proper criteria when choosing among your applicants.  A franchisor may also need a franchise attorney to fully evaluate existing franchisees and also to create an operation handbook to outline what is required of each franchisee.

Whichever your side of the transaction, you may benefit from a franchise attorney’s negotiation skills and his or her knowledge of structuring franchise agreements.  Most franchised businesses have strict guidelines for potential franchisees, including minimum net worth requirements and extensive background checks.