why hire a fanchise attorney

Hiring a franchise attorney is important because, when it comes down to it, their real job is to protect you. It’s one thing for them to explain the legal documents in franchising. It’s quite another to advise you.

Full Answer

Why do I need a franchise attorney?

Why Should You Hire A Franchise Attorney? The relative ease of investing in a franchise opportunity versus building a brand new business from the ground up is an attractive prospect for many entrepreneurs. Anyone with a bit of capital can begin operating a franchise once properly trained by the franchisor.

How do I find a franchise attorney?

May 21, 2019 · A franchise attorney can possibly help secure the right to close the business before your term ends. The items mentioned above are not the only things a franchise attorney can help you negotiate. Remember, every contract is different. That’s why it’s important to consult with an experienced franchise lawyer.

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

An experienced franchise lawyer can help you review and interpret the FDD. He can: help you understand this very thick document; help you spot red flags; help you formulate questions to better understand the franchise opportunity; Help with the Franchise Agreement. The franchise agreement is the actual contract between you and your franchisor.

Can a lawyer negotiate a franchisee’s right to close?

May 21, 2019 · First and foremost, a franchise lawyer will have your best interest in mind; it’s what you pay them the big bucks for (we’ll get to cost further down the blog). The two most important documents you must to go through before making things official are the Franchise Disclosure Document (FDD) and Franchise Agreement.

Why you need a franchise attorney?

A good attorney can even help you negotiate certain terms in the franchise agreement, potentially saving you thousands of dollars throughout your franchise term. Most potential franchisees think they can save costs at the beginning of the franchise process by simply trusting the franchisor and avoiding legal fees.

Why is it important to hire an experienced franchise lawyer to review the franchise agreement made?

Remember, every contract is different. That's why it's important to consult with an experienced franchise lawyer. Although some franchisors will say their terms are non-negotiable, a franchise lawyer can still help you get a full understanding of your rights, available protections and legal requirements.Jun 17, 2019

What are the benefits of hiring the services of a franchise lawyer or a franchise consultant?

​Benefits of a franchise consultantConfirming "franchisability"Franchise gap analysis.Franchise strategy and offering.Franchise system growth strategies and franchise sales support.Franchise sales compliance training and franchise sales staff recruitment.Operations manuals and training programs for franchisees.

What is franchise attorney?

They can help you negotiate with a franchisor by explaining what changes the franchisor might be willing to make and which ones will likely be rejected. An attorney with franchise experience can also assist you in evaluating the franchise opportunity and writing your own business plan.

Is it extremely beneficial working with a franchise attorney?

Protecting Your Interests Hiring a franchise attorney is important because, when it comes down to it, their real job is to protect you. It's one thing for them to explain the legal documents in franchising. ... A good franchise attorney will offer his or opinion on the feasibility of your potential new venture.Oct 10, 2014

Why is it important to review FDD before signing FA?

If you're buying a franchise reviewing the FDD is a critical step in the due diligence process. The FDD is a legal disclosure document that a franchisor must provide to you not less than 14 days before you sign a franchise agreement or pay any money to the franchisor.

What does a franchise consultant do?

Similar to a real estate agent, a franchise consultant acts as intermediary between his client (potential Franchisee) and the Franchisor. The franchise consultant's job is to determine what his client's ideal business is and narrow down opportunities that best match the client's interests, experience and resources.

How do lawyers choose a franchise?

9 Factors to Consider When Choosing a Franchise AttorneyAvoid conflicts of interest.Enjoy attorney-client privilege.Avoid having to pay for legal documents twice (once for their creation and once for their review by outside legal counsel)More items...•Mar 30, 2016

What is franchise and distribution law?

Franchisors, manufacturers and others who use third party relationships as a distribution mechanism nationally or internationally face a myriad of legal issues in pursuing their business goals. ... The Franchise and Distribution Group shares its clients' entrepreneurial focus and delivers responsive representation.

Is there a franchise law in the Philippines?

There are no specific laws governing franchising in the Philippines. Franchise agreements are regulated by the applicable provisions of the: Intellectual Property Code (IPC).Jul 1, 2018

What Can a Franchise Lawyer Do for You?

First and foremost, a franchise lawyer will have your best interest in mind; it’s what you pay them the big bucks for (we’ll get to cost further down the blog).

What Can a Franchise Attorney Help Negotiate?

Not everything is negotiable, but there are a few items a franchise attorney may be able to help you with, including the following:

How Much Does a Franchise Lawyer Cost?

We all know legal advice isn’t cheap. Thankfully, many franchise attorneys are sole practitioners or work for boutique firms. That means they often cost less than other lawyers. It’s not uncommon for a franchise attorney to charge a flat rate for select services like reviewing an FDD or Franchise Agreement.

What is a franchise agreement?

Franchise agreements tend to be very lengthy legal documents, containing complicated terms and provisions. You need to understand the deal you are signing. An experienced franchise attorney can help you understand various terms and their significance, such as:

What is a FDD?

All franchisors are required by the Federal Trade Commission to provide prospective franchisees with a Franchise Disclosure Document (FDD). This lengthy and detailed document is basically a disclosure statement. It contains the particulars of the franchise and the terms for you to obtain one of their franchises.

Do You Need To Hire A Franchise Lawyer?

In this case, my answer is a resounding “ yes .” And please don’t think that my ‘yes’ is because this is a post that’s paid for by a franchise lawyer. Far from it. That’s not how I roll.

3 Reasons Why You Need To Hire A Franchise Lawyer

What follows are 3 reasons why it’s crucial for you to hire a franchise attorney .

Who Gave You That Advice?

Hold on! Who “ told ” you that? I want a name and a phone number. Kidding.

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.

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 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.

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 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.