In Part II of our study, the authors deal with the myriad of legal issues that pervade the franchise relationship. Of particular interest are the differences between the sale of a franchise and the sale of a security; an analysis of the elements of the critical Franchise Disclosure Document (FDD); a detailed look at the franchise contract; some “special protections” available to automobile dealers and petroleum dealers in the United States; and the relationship between franchising and U.S. antitrust law (which provides a fertile area of litigation between franchisors and franchisees). The purpose of Part II is to inform the franchisee about the issues that will require professional attention by a competent and well-versed franchise contract advisor and legal expert.