what does a franchise lawyer do

In particular, a Franchise lawyer can provide assistance for Franchising in all aspects such as:

• Review or draft the franchise documents such as Franchise agreement, disclosure document, operations manual, inventory and or financial statements
• Review or draft the sale of business agreement if you purchase a franchisee
• Negotiate with the Franchisor on your behalf
• Resolve any disputes that may arise

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Full Answer

Can a lawyer be a franchisee?

Jan 26, 2021 · January 26, 2021. | In Business, Franchise. | By Mike Drumm. When deciding to embark on franchising your business, or franchising a new business, gathering all of the information needed before making the important decision of hiring a franchise attorney is important. Sometimes, however, it can be confusing as to why you need a franchise lawyer, or …

What questions should I ask when hiring a franchise attorney?

Mar 14, 2019 · Franchise lawyers simplify the Franchise Disclosure Document to make it easier to understand. They negotiate franchise documents, so you get better deals from your franchisor and inform you of your franchise rights. They can also help with legal research and writing projects, assist you with annual renewal, and more. Required Education

What is the role of franchise law?

Franchise lawyers may specialize in either transactional procedures, meaning they will handle the opening and managing of the store, as well as any paperwork or tax questions you may have. They may also specialize in litigation, meaning they are better equipped to help with disputes, negotiations, and lawsuits.

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

Franchise lawyers have the unique opportunity to help business owners establish, manage and end franchise relationships. These relationships serve as a critical part of the American economy. If you enjoy helping business owners and you want to hone your skills in a variety of practice areas, franchise law may be for you.

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.

What does franchise mean in law?

A licensing contract in which a holder of certain legal rights gives another to sell or package those rights.

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

Is it extremely beneficial working with a franchise 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. A good franchise attorney will offer his or opinion on the feasibility of your potential new venture.Oct 10, 2014

Are franchises right or privilege?

“But we should all be reminded that under the law, the grant of a franchise is not a right, but a privilege.Jan 2, 2020

What are the legal requirements of a franchise?

Let's take a closer look at the franchise law issues you need to understand before you get up and running.Intellectual property. ... Misrepresentation. ... Competition law. ... Restraint of trade. ... Anti-bribery. ... Data protection. ... Trading schemes.Sep 17, 2020

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

Why should a person hire a lawyer and an accountant to go over 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

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 do you need to hire an experienced attorney to review the franchise agreement?

An experienced franchise lawyer will be able to assess your franchise opportunity in light of industry standards and with an eye toward ensuring that you have reasonable protections in the event that something goes wrong.Jun 22, 2016

What is a franchise lawyer?

A franchise lawyer a type of business lawyer that specializes in the legal issues surrounding franchises. If you’re planning to franchise your business or are buying a franchise store, a franchise lawyer can help you through the process.

What is retainer fee?

A retainer is lump sum you will pay up front from which the lawyer will deduct hourly expenses. This is based off an estimate of how long your case will take, but if you go over the estimated hours, you will continue to be charged an hourly fee.

Is Rocket Lawyer a substitute for an attorney?

Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

What is franchise attorney?

Franchise attorneys work in private practice law firms, as in-house counsel for franchisers and as government employees who enforce federal and state regulations. Large franchises are likely to have their own in-house counsel who work exclusively on franchise issues.

What is a franchise?

A franchise is the legal use of another company’s business secrets, copyrights and other business identifiers. A franchiser offers use of these items in exchange for a fee. The franchisee uses these items in order to establish and conduct business. To the consumer, franchise locations may look very similar, but each location is owned ...

What are the requirements for franchises?

Federal franchise law comes from 16 CFR parts 436 and 437. The purpose of the law is to require franchisers to give franchisees the information that they need in order to determine if the franchise is a sound business investment. Franchisers must give prospective franchisees information on a variety of topics including the following: 1 The owner of the franchise, their parent company and affiliates 2 Bankruptcy information 3 Estimate of startup costs 4 Restrictions on the business 5 Obligations of the independent business owner 6 Assistance provided to owners 7 Advertising provided 8 Territorial rights and limitations 9 Names of celebrity endorsers 10 Dispute resolution procedures 11 Optional financial performance representations

What is the purpose of the FTC?

The purpose of the (FTC) is to protect consumers and ensure economic competition. The agency creates policy, conducts investigations, receives complaints and may bring lawsuits in order to enforce federal law. The FTC has used several approved formats for franchise disclosures over the years.

What is franchise relationship?

A franchise relationship is a mutually beneficial relationship. It’s not always in the best interest of either party to litigate as aggressively as possible when an issue arises. Franchise attorneys must be skilled at knowing how to approach an issue. Alternative dispute resolution is an important area of franchise law.

What is alternative dispute resolution?

Alternative dispute resolution is an important area of franchise law. Lawyers must work carefully to negotiate with their counterparts when disputes arise. They must also know when it’s best to pursue litigation instead of mediation or direct negotiations.

What are territorial limitations?

Territorial limitations. A critical and often disputed area of franchise law is the question of territorial limitations. Independent business owners often want to know that if they agree to open a franchise business in a location, the franchiser will not allow another business to operate a franchise in the same geographic location. ...

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.

Franchising in Australia

In recent years, franchising has exploded in the Australian market. From fast-food restaurants to bubble-tea chains, franchising has become a popular business structure.

What can a Franchise lawyer do for you?

Prior to operating your franchise, it is important you seek legal advice on your franchise documents. Generally, a franchise lawyer can assist you with:

Why Do I Need a Franchise Attorney?

Entrepreneurs enter into franchise agreements for many different reasons. The prospect of owning a self-sustaining business while obtaining opening and ongoing support from the franchisor is one primary reason.

But what do franchise attorneys do exactly?

A franchise attorney can assist prospective business owners navigate preliminary processes necessary for starting a franchise operation, such as reviewing and commenting on Franchise Disclosure Documents (FDDs) provided to the prospective franchisee by potential franchisor candidates.

What is a franchise transaction?

As one might imagine, from a legal perspective a franchise transaction is generally at its most basic when the person buying a franchise does not intend employing other people and they do not intend leasing premises to operate from. Often a “one man band” type franchise like this occurs for a service based franchise, such as home services and cleaning franchises. In that case, when a client comes to see a lawyer, there are three main things that need to be reviewed and discussed.

How many pages are in a franchise agreement?

Franchise Agreements can vary in length from 30 odd pages through to 200 pages.

What is the second scenario?

The second scenario is not much different from the first one, but it involves an extra layer of complexity and this brings with it more complications. One could reasonably assume that because employees are involved, the turnover of the franchise will be higher and therefore the return to the franchisee will be higher.

Is a franchise a reasonable sized business?

It would be fair to say that when a franchise system involves a retail operation, the employment of people and the leasing of premises, that it can end up being a reasonable sized operation. Franchise Agreements for such operations tend to involve more content and therefore are longer and take more time to review.

Do franchisees need a loan?

Unless a franchisee is paying cash to finance their purchase and working capital, there will often be a need for a loan to be raised. At that time loan agreements will be prepared and executed and, in many cases, the loan will be secured against the family home.

What is a transactional attorney?

A “transactional attorney” will focus their practice on the preparation of your franchise legal documents. If your franchise lawyer does not have some focus on the transactional side, they will not be as efficient at preparing your documents.

What is more important than accessibility?

Perhaps more important than “accessibility” is communication style . Some franchise attorneys prefer email and some prefer phone contact. If you have a preference, you should probably inquire on this issue. Personality. In most instances, you will be working with your franchise attorney for years.