There is a growing number of entrepreneurs signing up for new franchise businesses. You probably have done all you could to get approved for the franchise business such as making visits to the franchise headquarters but still couldn’t completely understand the business system. As you know, there is a contract you must sign before you are allowed to open the new franchise business. It is important that you consult a franchise attorney prior to putting down your signature in the contract. A good franchise lawyer will do all they can to protect you in the law. They can help you in different areas such as territorial protection, audit expenses, transfer or ownership and etc.
Franchise attorneys are familiar with the content of the Franchise Disclosure Document (FDD). Prospective customers who are interested in opening a franchise will usually get a copy of the FDD. The FDD contains hundreds of pages and mentions a lot of technical law terms. There are 23 items outlined in the FDD that you need to review. Reviewing the FDD is necessary because the franchise arrangements can be unfair sometimes. Your lawyer can review the unfair terms in the FDD and help you to negotiate for better terms.
Franchise lawyers can help you to review the document because they have written many FDDs before. The lawyer is able to review the FDD disclosure, explain every single term, answer all your questions regarding the FDD. Some of the areas they cover include the fees, financing arrangement, and startup costs. Franchise lawyers are up to date with the latest franchise laws so they can always provide you with the best advice. They can continue to provide assistance for you even after you have signed up for the franchise. Without the help of a franchise lawyer, you may find yourself encountering issues after signing up. These problems can pile up and eventually you will find yourself losing leverage.
The franchise attorney can give you advice on the best franchise business to invest. The franchise law firm can explain to you the different types of business entities including LLC, S Corporation and C Corporation. They can assist you in creating contracts with important employees and offer advice when your franchise business did not succeed.
If you try to sue the franchise, the court may rule against you for failing to read and check the disclosure document. The franchise development director may tell you that there is no need to hire a franchise attorney because they want you to quickly sign the contract. Hiring a franchise attorney is necessary because the FDD is a very long document. You may miss out some important points if you try to read and understand it yourself.
In conclusion, it is best to hire a franchise attorney especially if you are new to franchising. The franchise attorney is knowledgeable in this field so they are qualified to provide advice no matter what questions you have.
