Have a question? Send our franchise law experts a message. We will make every effort to reply within one business day.
We advocate for you at all times, looking out for your best interest when purchasing a new or existing franchise business. This includes discussing with you whether you have chosen a franchise system that meets your personal expectations as to how you envision operating a business. Have you chosen a franchise whose products or services you genuinely like and feel you will be able to sell and market? Can you handle the required hours, operating requirements and expense? It is necessary to take an introspective look as to how satisfied you will be operating under a required business format and system that may take substantial financial resources to establish and operate.
Our role as legal counsel is to assist your determination of whether the franchise company you have selected is "right for you" by reviewing, discussing with you and clarifying the meaning, terms and implications of the Franchise Disclosure Document (FDD) required by the Federal Trade Commission to be given to all prospective franchisees at least 14 calendar days before any documents are signed or payments made. This is critical, as many franchisees simply do not understand the duties owed under the terms of their franchise agreement, or the drastic implications that may occur if you are in default of those obligations. Through this education process, you will better understand what is required of you and of your franchisor.
Many franchise systems, especially those that are new to franchising, may agree to make certain changes to their franchise agreement. When possible and necessary, we can help you negotiate these changes.
Generally, limited liability companies or subchapter s corporations are recommended as the legal entity to operate the franchise business. These and other options will be discussed, including preparation of buy-sell agreements (for corporations) or operating agreements (for LLC's).
Depending upon whether you are leasing space or purchasing a building/land for your franchise, lease or purchase agreements will be drafted and negotiated if requested.