what would your first 3 questions be to your franchise attorney?

Do I need a franchise lawyer?

Oct 03, 2019 · Learn some key questions to ask before you sign a franchise agreement from a national franchise attorney.

How do I hire a franchise attorney after I get the FDD?

Note that they must, legally, provide the FDD no later than your first in-person meeting. Once you have the FDD you’re ready to hire a franchise attorney. Prior to meeting with him or her you should review the documents on your own and prepare questions and concerns for your meeting. Don’t worry if some parts of the FDD don’t make sense ...

What is the difference between general business lawyers and franchise lawyers?

Jun 29, 2016 · Item 5 of the Franchise Disclosure Document (FDD) lists the initial franchise fee, and Item 7 details additional start-up costs such as real estate, equipment, licenses, etc. Be sure to discuss these items in depth with the franchisor so that you have a clear understanding of your investment and what you will need financially to get up and running.

What questions do franchisors ask in an interview?

Talk to your franchise attorney about disputes involving renewal or non-renewal. Transferring Franchises. Transferring a franchise or assignment in franchising is something most parties do not consider when signing a franchise relationship. However, during the course of operating the company, the franchisee may have a financial, business, or ...

What 3 things are typically included in a franchise agreement?

Within your franchise agreement, some of the substantive legal rights and obligations that will be established include:The Grant of Franchise Rights and Term. ... Franchisee's Development Obligations. ... Initial and On-Going Training. ... Territorial Rights. ... Operating Procedures. ... Initial Fees. ... On-Going Fees.More items...

What are 4 questions you should ask when evaluating a franchise opportunity?

Overall Questions to ask the Franchisor:Where will your franchise be located?What is the success rate of existing franchises?What method is used to protect franchisees from poorly performing franchises?Is there a franchise owners association?Is there a franchise advisory council?More items...

What questions should I ask a franchise owner?

Some of these questions are:How long have you been in business?What made you choose this franchise?How would you rate your relationship with the franchisor?How would you rate the initial training?How would you rate the marketing programs?Are you aware of any franchisees who are unhappy in this business?More items...•7 Jul 2019

What factors should you consider when deciding to acquire a franchise?

What Should I Consider Before Buying a Franchise?The type of experience required in the franchised business.The hours and personal commitment necessary to run the business.The track record of the franchisor, and the business experience of its officers and directors.How other franchisees in the same system are doing.More items...

What important questions should you ask before becoming a franchisee in a company?

Here are the best questions to ask them:How well did your first unit opening go? ... How well do the marketing programs work? ... How well does everybody get along? ... How much money can I make? ... If you had it to do all over again, would you still buy this franchise?15 Jun 2011

How do you answer a franchise question?

Answering these questions will give you a good start toward identifying a good franchise fit.Where will the business be located? ... Do I want to commute? ... Do I want a home-based franchise?Do I want to work five days a week? ... Do I want to be an absentee owner?Is there a specific industry I want to work in?More items...•25 Aug 2019

How do I prepare for a franchise interview?

How to Prepare for the Franchise InterviewBe Aware of Potential Challenges. Do your homework. ... Analyze Your Financial Situation. ... Talk to Current Franchisees. ... Questions for the Franchisor. ... A Mutually Beneficial Relationship.5 May 2021

How do you talk to a franchise owner?

The best way to do this is actually to start talking to current franchisees. The best way is to this is to call or visit a franchisee, don't just email them. You might need to be a bit persistent, but if you are then you can get all of your questions and concerns answered.

What is franchise strategy?

Put simply, a franchise strategy is a road map that gives your business direction by: outlining objectives. helping you to understand the landscape in which you operate. mapping tactics to achieve your goals. planning for any potential obstacles in the road.24 Feb 2020

What steps should a potential franchisee take before investing in a franchise?

Step 1: Recognize that you're interested in opening a franchise.Step 2: Figure out which industries you're interested in and how much you can invest.Step 4: Make a shortlist.Step 5: Narrow your shortlist by talking to franchisors and current owners.Step 6: After picking a franchise, visualize your life as an owner.More items...•8 Sept 2017

How would you research a franchise purchase before making the decision to invest?

Industry, TAM & SOM. You likely already have at least some idea of the industry you want to buy into. ... Your Local Market. Along with your industry research, you're going to want to focus in on researching your local market. ... Franchisor Reputation. ... The Franchise Disclosure Document (FDD) ... Start Up Costs.30 Sept 2019

What are the significant considerations in franchising a business?

Important considerations for your franchise model include fee and royalty percentage, terms of agreement, size of territory awarded to each franchisee, geographic areas in which you are willing to offer franchises, the specifics of your training program, and more.

What is franchising law?

Franchise law is a unique field with specific laws that apply at the state and federal levels. The state of the law – and the state of the franchise industry itself – are constantly changing, and an attorney who devotes his or her entire practice to franchising is likely to have a much better understanding of the legal landscape than an attorney who also practices in other areas.

Who is Jeffrey Goldstein?

The Goldstein Law Firm is an award-winning franchise law firm led by Jeffrey M. Goldstein, a franchise attorney with more than 30 years’ experience exclusively representing franchisees. For more information, we invite you to schedule a free, no-obligation consultation. To speak with Mr. Goldstein in confidence, please call (202) 293-3947 or request an appointment online today.

Do franchise attorneys represent franchisees?

However, this can raise concerns – including potential conflicts of interest – for franchisees, particularly in the context of litigation. An attorney who exclusively represents franchisees will be focused on the issues from your point of view, and will have an appreciation for the practicalities of operating as a franchisee.

Can a franchise attorney guarantee the outcome of a dispute?

While no attorney can guarantee the outcome of any particular transaction or dispute, an experienced franchise attorney should be able to provide you with a reasonable assessment of the likely outcomes.

Do franchisees need an attorney?

As a result, franchisees need an attorney who can level the playing field. When choosing an attorney to review your franchise agreement or protect your interests in negotiations, arbitration or litigation, you need to make an informed decision.

Questions You Should Ask Your Franchise Attorney

If you are considering purchasing a franchise, there are a few initial questions you should ask your franchise attorney before you make the initial investment. The list below includes several important topics to discuss, including questioning the registration process, the FDD itself, and industry-specific issues.

Was properly disclosed with a legally compliant FDD?

The FTC Rule requires franchisors to disclose certain aspects of their business and business experience in a 23-item document – the Franchise Disclosure Document (often referred to as an “FDD”) and to wait fourteen calendar days before taking money from you or signing a franchise agreement.

Was the FDD registered with the state on the day you were provided with it?

Many states require franchisors to register their FDDs before offering or selling them to prospects.

Was the FDD I was given properly updated?

The FTC requires franchisors to amend their FDD annually, within 120 days of their fiscal year. A typical fiscal year ends on December 31, meaning the deadline for renewal would be April 30. If you were given an FDD in March, it might be wise to wait until the annual renewal version in April before you move forward.

Who else has information about the franchisor?

All FDDs are required to include contact information of current and former franchisees. Existing franchisees know the ins and outs of the business and how the franchisor treated them and can give a fresh perspective on the franchise system.

How much is this going to cost me?

Ask your franchise attorney to go over the initial fees, other fees, and the estimated initial investment – each of which has their own item in the FDD.

How much money will I make?

While not required, a franchisor may choose to include financial performance information in its FDD and may do so as long as there is a reasonable basis for the information.Providing financial performance information that is not included in the FDD (except for a few limited exceptions) is a big red flag and you should ask your franchise attorney about the consequences of these actions, which are likely forbidden by the FTC..

What do franchise lawyers do?

In general, a franchise lawyer provides advice on: 1 How to enter and end a Franchise Agreement 2 What documents do you need to provide 3 The legal risks of particular franchising arrangements 4 The rights and obligations of franchisor and franchisee

Who is Ray Lawpath?

Ray is a Legal Intern at Lawpath working with the content team . With an interest in Legal Technology, Contract Law and Equity, Ray is currently completing Bachelor of Laws at the University of Technology Sydney.

How to find a franchise attorney?

How Do I Find the Right Franchise Attorney? 1 IFA. The International Franchise Association (IFA) provides a list of their attorney partners on their website. While these firms are reliably franchise-oriented, some work exclusively for franchisors. Also, all pay for IFA membership. 2 SBA, Bar Association, Chamber of Commerce. Check with your local Small Business Association (SBA) office, Chamber of Commerce, and Bar Association for listings and recommendations of local franchise attorneys. 3 Current Franchisees. Ask some of the franchisees of the system you are considering who they used for legal counsel and what their experience was. 4 Franchise Attorneys. Don’t be afraid to “interview” franchise attorneys over the phone to get an idea of their philosophies, costs, experience, and personalities before making your decision.

What can a franchise lawyer do?

Franchise lawyers may also be able to help you negotiate the terms of your agreement and offer guidance on which aspects of the agreement are vague, requiring additional clarification from the franchisor.

What is the right of first refusal?

Right of first refusal: If a franchisee decides to sell a franchise unit, the franchisor has the option of buying it back themselves or allowing a new owner to buy it and take over operations. In some cases, the franchisee is tasked with finding a new buyer, which the franchisor then needs to approve before final sale.

What is franchise territory?

Franchise territory: Most franchise systems offer franchisees an exclusive territory. This may be outlined as a certain distance from your business address, for example, a specific city or county or some other delineation.

What is an IFA partner?

The International Franchise Association (IFA) provides a list of their attorney partners on their website. While these firms are reliably franchise-oriented, some work exclusively for franchisors. Also, all pay for IFA membership. SBA, Bar Association, Chamber of Commerce. Check with your local Small Business Association (SBA) office, ...

What happens if mediation is unsuccessful?

This means that, if mediation is unsuccessful, the franchisee may not have much time to properly file suit or may run out of time to do so . It is important to ensure that the statute of limitations and mediation requirements do not conflict.

Top 16 Questions to Ask When Interviewing Franchisors

How did the franchise get started and what is the background of your executives? Who were the founders? What was their motivation for starting the business? Do you possess similar skill sets and a passion for the industry? Finding the perfect match requires not only that you feel the franchisor has adequate experience, but that you identify with the fundamentals of the business..

Wondering About the Right Questions to Ask Franchisees?

It's also important to seek out some existing franchisees to talk to before investing in any franchise system. You should never go into an investment blind, so we recommend checking out these top questions for franchisees.

What is a franchise business?

A franchise is a licensing relationship between the franchisor, who licenses a business package to the franchisee. This generally provides the franchisee will offer products and services under the franchise trade name and business operating system. A franchisee may also receive training and support in business operations, marketing, and development.

What happens if you don't get a franchise agreement?

After a dispute, breach, or problem renewing a franchise agreement, when the parties cannot come to an agreement, they may have to turn to the courts. One or both parties may file a civil claim for damages or injunctive relief.

What is a franchise agreement?

A franchise agreement can represent a great opportunity and a significant risk for both the franchisor and franchisee. Before getting into a franchise relationship, individuals or businesses should consult with an experienced franchise attorney about how to prepare for any eventualities and plan for the future.

What is a termination clause in a franchise agreement?

Generally, a termination clause allows either party to terminate the agreement when there has been a material breach and the parties are not able to resolve the dispute.

Can you transfer a franchise to another owner?

Transferring a franchise or assignment in franchising is something most parties do not consider when signing a franchise relationship. However, during the course of operating the company, the franchisee may have a financial, business, or family interest in transferring the franchise to another owner.

What Is Your Experience with Franchises?

Do You Have Any Experience Or Background Knowledge in X Industry?

How Will You Help Me?

• In general, a franchise lawyer provides advice on: 1. How to enter and end a Franchise Agreement 2. What documents do you need to provide 3. The legal risks of particular franchising arrangements 4. The rights and obligations of franchisor and franchisee Some franchise lawyers will only do the bare minimum while others take the extra step to furthe...

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What Are Your Costs?

Is There Any Conflict of Interest?

Conclusion