Florida Franchise Act: Essential Protections for Current & Prospective Florida Franchisees in 2025

Whether you’re reviewing a Franchise Disclosure Document (FDD) before signing, buying or selling an existing franchise, or facing disputes with your franchisor, understanding the Florida Franchise Act is crucial to protecting your investment and legal rights.

What Is the Florida Franchise Act and How Does It Protect Your Business Investment?

The Florida Franchise Act (F.S. §817.416) is a powerful state law designed specifically to protect franchisees from fraudulent practices and misrepresentations during franchise transactions. This crucial legislation governs relationships between franchisors and franchisees throughout Florida, creating legal safeguards for business owners like you.

As a franchisee in Florida, this law serves as your shield against deceptive practices that could otherwise jeopardize your business investment. The Act applies to all individuals and entities doing business in Florida, establishing a clear legal framework that holds franchisors accountable.

Key Protections for Florida Franchisees: What Every Business Owner Should Know

The Florida Franchise Act specifically addresses several critical areas where franchisors might attempt to mislead potential franchisees:

• Financial Success Misrepresentations: Protection against false or exaggerated claims about your potential franchise’s profitability or success rate
• Investment Requirement Transparency: Prevention of hidden costs or misleading statements about the total investment required to successfully operate your franchise
• Market Oversaturation Protection: Safeguards against franchisors selling more franchises than the local market can reasonably sustain

Under Florida law, franchisors must file annually with the Florida Department of Agriculture and Consumer Services before they can legally offer or sell franchises in our state. This requirement ensures proper oversight and compliance with both state and federal franchise regulations.

How to Recognize Potential Legal Claims Under the Florida Franchise Act

If you believe a franchisor has engaged in fraudulent practices or made material misrepresentations, you may have grounds for legal action. Common franchise claims our attorneys handle include:

1. Fraudulent Inducement Claims

When franchisors mislead prospective franchisees through false promises or incomplete disclosures, they may be liable for fraudulent inducement. This often involves:

• Providing inaccurate financial projections that enticed you to invest
• Failing to disclose significant risks associated with operating the franchise
• Misrepresenting the level of support provided to franchisees

2. Disclosure Requirement Violations

Florida law requires franchisors to provide accurate and complete disclosure documents. In the landmark case KC Leisure, Inc. v. Lawrence Haber, the court established that franchisor officers can be held personally liable for knowingly providing misleading disclosure documents to franchisees.

3. Investment Recovery Rights

The Florida Franchise Act provides powerful remedies that allow franchisees to recover their investments when they’ve been misled. This means you may be entitled to recover:

• Your entire franchise investment
• Reasonable attorney’s fees
• Additional damages depending on your specific circumstances

4. Breach of Good Faith Claims

When franchisors fail to act in good faith or intentionally deceive franchisees, they violate their legal duties. Florida courts carefully evaluate whether inaccuracies in franchisor representations were intentional or resulted from negligence.

Powerful Legal Remedies Available to Florida Franchisees

If you’ve been harmed by franchisor misconduct, the Florida Franchise Act provides several powerful legal remedies:

Complete Financial Restitution

Franchisees who prove fraudulent inducement or material misrepresentation can recover all money invested in the franchise. This comprehensive remedy ensures you don’t bear the financial burden of a franchisor’s deceptive practices.

Attorney’s Fee Recovery

The Act specifically allows for the recovery of reasonable attorney’s fees alongside restitution. This important provision ensures that legal costs don’t prevent franchisees from pursuing justice when they’ve been wronged.

Contract Rescission Options

Florida courts may allow franchise agreements to be completely rescinded, effectively releasing you from further obligations under unfair contracts that were secured through misrepresentation.

Injunctive Relief

In cases of ongoing harm, courts may grant injunctions or other equitable remedies to prevent continued damage caused by a franchisor’s actions.

Comprehensive Franchise Legal Services: How Luther Lanard Protects Florida Franchisees

At Luther Lanard, our specialized franchise attorneys provide end-to-end legal support for franchisees at every stage of the franchise lifecycle. Our comprehensive services include:

For Prospective Franchisees

• Expert FDD Review Services: Before you sign any franchise agreement, our attorneys meticulously analyze the Franchise Disclosure Document to identify problematic clauses, unfavorable terms, and potential red flags that could impact your business.
• Franchise Agreement Negotiation: We help negotiate more favorable terms to protect your interests before you commit.  (Please note that not all franchisors are open to negotiation.)
• Key Risk Factor Analysis: We identify potential red flags in the franchisor’s litigation history and compare fee structures to industry standards, helping you understand if certain costs are abnormally high compared to similar franchise opportunities.

For Franchise Buyers & Sellers of Existing Franchise Businesses

• Franchise Acquisition Support: Comprehensive legal guidance through the purchase process
• Franchise Sale Representation: Legal protection when selling your franchise
• Transfer Agreement Negotiation: Expert negotiation with franchisors regarding transfer fees and conditions

For Current Franchisees Facing Disputes

• Pre-Litigation Strategy: Early intervention and strategic planning to resolve disputes before they escalate to litigation
• Litigation Representation: Aggressive advocacy in franchise disputes involving fraud, misrepresentation, or contract violations
• Franchisor Compliance Enforcement: Holding franchisors accountable to their contractual obligations and disclosure requirements

Our dedicated legal team has extensive experience representing franchisees against powerful franchise corporations and has successfully helped countless business owners protect their investments and secure the remedies they deserve.

Take Action to Protect Your Franchise Investment Today

For Prospective Franchisees

Don’t sign a franchise agreement without understanding your rights and obligations. Our FDD review services can help you identify potential issues before they become costly problems and negotiate better terms to protect your investment.

For Current Franchisees

If you’re experiencing issues with your franchisor or considering selling your franchise, prompt legal advice is essential. Early intervention often leads to more favorable outcomes and can preserve your business relationship while protecting your rights.

For Franchisees Facing Potential Litigation

When disputes escalate, having experienced franchise litigation attorneys on your side is crucial. Our team knows how to navigate the complex intersection of franchise agreements and the Florida Franchise Act to advocate effectively for your interests.

Contact Luther Lanard today for a confidential consultation about your specific franchise situation. Our experienced franchise attorneys will provide expert guidance tailored to your unique needs—whether you’re reviewing an FDD, buying or selling a franchise, or dealing with franchisor disputes.

Call us at 407-410-3446 or complete our online contact form to schedule your consultation with a franchise law expert.

This article is for informational purposes only and does not constitute legal advice. For specific guidance regarding your franchise situation, please contact our office directly.