why hire a franchise attorney to franchise your business

Do I need a franchise lawyer?

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.

Should I negotiate my franchise agreement with my franchisee?

Oct 10, 2016 · Whether you are considering a new franchise opportunity or facing litigation with your franchisor, find out why to choose a franchisee-only attorney.

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

Jul 26, 2018 · To ensure you are able to attract as many customers as possible and maximize profit, your franchise attorney can try to negotiate terms that ensure your territory is as large and inclusive of population centers as possible.

Can a franchisee close a business?

Jul 16, 2018 · Purchasing a franchise is an extensive, and sometimes overwhelming, process that covers business, financial and legal issues. Since a franchise is typically a significant investment and long-term commitment, you are well advised to work with professional advisors along the way. So why should you hire a franchise attorney? Understanding Legal Documents. By law, …

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.

Why should an entrepreneur consult with an attorney prior to signing a franchise agreement?

A competent franchise attorney can offer useful suggestions on how your new franchise business should be set up. ... It will determine your legal rights and liabilities as a business owner, and will also determine how your business is taxed.Sep 20, 2013

Are franchise owners liable?

Franchises offer limited liability for the franchisee from any legal suits brought by customers or employees. This means that the franchise owner's personal assets cannot be affected by the outstanding debts of the franchise.

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

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.

What kinds of decisions need to be made when starting a new business?

Do your research. You want to make sure you understand the industry you'll be involved in so you can dominate. ... Determine your audience. ... Have a strong mission. ... Choose a structure. ... Map your finances. ... Understand your tax burden. ... Understand the risk. ... Put together a business plan.More items...

What are the disadvantages of a franchise?

There are 5 main disadvantages to buying a franchise:1 - Costs and Fees. ... 2 – Lack of Independence. ... 3 – Guilt by Association. ... 4 – Limited Growth Potential. ... 5 – Restrictive franchise agreements.Feb 23, 2021

Can you sue franchise?

Franchisees can sue franchisors for a variety of reasons, such as non-disclosed operating costs and for opening too many franchises in a geographic area.

What are the cons of owning a franchise?

Disadvantages of franchising for the franchiseeRestricting regulations. ... Initial cost. ... Ongoing investment. ... Potential for conflict. ... Lack of financial privacy.

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.

What is the value of hiring a franchise attorney?

If you are considering the purchase of a franchise, what is the value in hiring a franchise attorney? Purchasing a franchise is an extensive, and sometimes overwhelming, process that covers business, financial and legal issues. Since a franchise is typically a significant investment and long-term commitment, you are well advised to work with professional advisors along the way. So why should you hire a franchise attorney?

What is a franchise disclosure document?

By law, franchisors are required to prepare and deliver to you a Franchise Disclosure Document, a legal document containing disclosures mandated by federal and state franchise laws. Franchise disclosure laws were passed for the protection of prospective purchasers of franchises to make sure there were given information important to the decision of whether to purchase a franchise. One exhibit in the Franchise Disclosure Document is the Franchise Agreement, which is the binding contract between the franchisor and the franchisee.

What do franchise lawyers do?

As a prospective franchise owner, you want a franchise lawyer that specializes in franchisee clients, not a firm that represents franchisors. They protect your rights as a new franchise owner and advise you on the legal implications of the decisions you make.

What makes the franchise attorney important?

Unlike general-practice or even business focused lawyers, franchise attorneys understand the franchisee-franchisor relationship and all of its nuances. If you already have a personal or business lawyer, have s/he help you find a franchise lawyer to advise you through your franchise purchase, opening, and ongoing operation as necessary.

Why You Need a Franchise Attorney

They have a vast understanding of franchise law – that which governs the franchisee-franchisor relationship. In a post published in the American Bar Association (ABA), Leslie D Curran says franchise lawyers often start as corporate and trademark advisors.

About the Author - Kerry Crocco

Marketing Coordinator for Franchise Solutions and Franchise.com; conduct email marketing campaigns, web page management and trade show coordination. Mother of two, wife and Young Living Essential Oils representative.