Where to start
Are you ready to make the leap from employee to business owner? Or, are you starting a franchise as a way to maximize retirement funds? Are you considering a franchise opportunity as an encore career?
We can help you answer these questions and get started with your franchising opportunity.
An opportunity, but also an investment
Many franchise agreements require a long-term commitment of 5 – 20 years, include a personal guaranty and strict operating guidelines.
As a prospective franchisee, you should perform due diligence BEFORE you sign any document or pay any money to the franchisor.
Due diligence is the process of evaluating a potential transaction from all angles before making a decision.
Please allow adequate time to meet the franchise executive team, evaluate the franchisor’s financials and its relationship with existing franchisees.
FRANCHISE REVIEW
Review the entire FDD and perform a detailed analysis of relevant terms, restrictions, and conditions. Our analysis includes analyzing initial and ongoing fees and comparing these to industry standard. During our review, we will identify disclosure items to clarify with the franchisor and separate items to verify with existing franchisees and consultants that operating with specific franchise industries.
REVIEW CONFERENCE
After analyzing the FDD, we will schedule a review conference and information session to discuss your business structure, general franchisee rights, and obligations, and advise you on the basics of federal and state franchise law.
We will also debunk franchise myths and identify any franchise agreement “red flags.” In this meeting, we will answer your questions and address any concerns.
AGREEMENT AMENDMENTS
If you and the franchisor agree upon terms that are not in the existing agreement, we assist
in negotiating with the franchisor (upon request). We are also available to draft or revise franchise addendums and guide you if there is additional due diligence to complete after the review conference.
So Many Options, how do i choose the right one?
We often hear this question from our franchisee clients. Why?
Because at any given time there are over 3,000 franchise
opportunities within the United States. As an experienced franchise law firm, we analyze each franchise to help you make an informed and educated decision. Our goal is to help you select a franchise that is the right fit for you and your family, now and in the future.
What to look out for
The following items should be evaluated in each franchise agreement:
- Initial investment and start-up costs
- Royalty payments and ongoing fees
- Advertising and marketing requirements
- Franchisor’s initial training and ongoing support & assistance
- Site selection, approval, and territory exclusivity
- Default and termination
- Franchisor’s business history and experience
- Intellectual property rights
- Prior litigation and bankruptcy history
- Dispute resolution process
- Renewal and transfer restrictions and guidelines
- Financial performance representations
- Franchisee / franchisor’s rights, duties and obligations
- Operations standards
- Purchase requirements – inventory & equipment
Create your Empire
Franchise Your Business
So you want to be a Franchisor…
For our franchisor clients their business is their brainchild, their life’s work. We recognize the time and energy that you have invested to make your business a success. If you are ready to franchise your business we will walk you through each step of the process and advise you on the best strategy for franchising your business. We will then collaborate with you on drafting the FDD and Operations Manual and guide you through the registration process to ensure that the FDD complies with federal and state laws.
Stay on Top
Representing Current Franchisors
Already have a Franchise?
We help existing Franchisors with annual registrations, FDD updates, supplier agreements, and other franchise-related agreements. Our clients include developing and mature franchise systems, no matter is too large or too small. Call us for a free evaluation of your franchise documents and ask about our annual renewal and registration rates.
Please remember that franchise law is a specialized field that requires expertise and knowledge of federal and state regulations and industry standards. If you fail to comply with federal disclosure rules and state registration requirements, you might be subject to financial and other penalties and could face potential legal action or consumer fraud claims. You might also be prohibited from selling a franchise in a particular state or face steep financial penalties for offering franchises without the proper registration and approval. You can avoid these costly mistakes by consulting with experienced counsel.
ADDITIONAL SERVICES
Let’s round out the edges of your plan
We are available to create a new corporation or limited liability company (“LLC”), negotiate a commercial lease, register trade names, and assist with other legal matters related to starting and operating your franchise (separate fees apply)
We also assist clients that are purchasing or transferring an existing franchise business. We typically refer to this transaction as a franchise resale and it involves several steps including drafting or revising a purchase agreement, contract review and negotiation, escrowing funds, performing legal claims searches, etc.
In addition to traditional services, we also Counsel franchise associations. We also assist clients with franchise renewals and negotiating the end of a franchise relationship.
