If you are all set to become an official franchisee, it is time for you to wait and ponder on the things we wish to discuss with you. The Franchise Disclosure Document and franchise agreement which the franchisor provides to you could have hundreds of pages because FCC regulations require the documents to disclose details about 23 separate items to give information on everything about the company.
It usually includes general condition of the marketplace, the history of the business, costs and earnings, startup costs, initial and ongoing fees, any state specific conditions, etc. We recommend you to not try to save franchise attorney cost.
Let’s have a look at which things you should be careful about and how a specialized Franchising Lawyer can help you:
- Establishing your formal business
It is imperative that you set up your business entity. An experience Franchising Lawyer helps you to figure out which arrangement will be suitable for you to protect your personal assets from liability claims and ensure that you get proper share of the profits, for example, sole proprietorship, limited or general partnership, limited liability company, etc.
- Analyzing the franchise agreement
You might find the terminologies used in legal documents difficult to understand. The lawyer can point out red flags of there are unusual demands or if important information is missing in those documents.
- For negotiating terms
The franchisor usually has the upper hand in such dealings. However, an experienced franchising lawyer could figure out things for you benefit and negotiate with the franchisor. The franchise attorney cost won’t be a burden to you if the attorney can get you considerable discounts or ease in procedure rules.
- Location and boundaries of your business
It is critical to take care of this aspect of business. Suppose your location turns out to be bad for your business or your lease expires, will the franchisor allow you to change the location? Another important point is the radius of the boundaries granted to you as an extent of you dominion, which determines the geographical area and demographics of your outlet.
- Clarity about support from the franchisor
A lawyer helps you get clarity of what kind of support and to what extent will be provided by the franchisor from time to time. It is critical to know all the details in advance so that there are no unpleasant surprises and complications in calculating your costs, which will directly affect your profits.
- Handling franchise dispute
It is critical to have clarity on the default conditions mentioned in the letter of arrangement. An expert lawyer could be careful about the legal language used to ensure that you are in a position to cure a default. Lawyers are also extremely helpful for avoiding management disputes and conflicts in your ongoing franchise business.
- Terms of termination and renewal
While you might get emotionally attached to the concept, a lawyer takes a detached view of the agreement to see if the terms of termination are not unreasonable. Also, the lawyer carefully checks if the renewal wouldn’t put a hole in your pocket.
LawTally recommends you to avail the services of an experienced Franchising Lawyer and not try to do things on your own. Why take chances if an expert lawyer could make your franchise setting up process as well as further operations and franchise dispute a smooth sailing?