Franchise attorneys are with you every step of the way to protect you if you are thinking about buying into a franchise. When purchasing a franchise and signing an agreement to uphold the procedures and policies of the franchise, it is in your best interest to have a franchise lawyer read through the paperwork with you. Franchise attorneys can help you avoid problems before they occur, and answer questions you don’t even know you have. As you go through the process of opening the franchise, your franchise lawyer will also help you negotiate the reality of the daily grind and get your outlet up and running.
- Review the FDD.
The Franchise Disclosure Document (FDD) contains 23 important items that will give you information about the business you are trying to buy into. You should be especially interested in the experience of the franchisor and success of the franchise system, the fees to buy into the franchise, and the startup costs associated with this business. The FDD will specifically outline your obligations as a franchisee, and explain any royalties or advertising you are responsible for. As a trained professional who works with franchise law every day, a franchise lawyer knows the questions to ask, the pitfalls to avoid, and the specific ways to read and understand the document. - Review and negotiate the franchise agreement itself.
It is a known fact that in the franchising industry, the franchise agreements favor the franchisor. But you can counteract this common knowledge by having a competent lawyer in the ring on your side. Even though the favor goes to the franchisor, that doesn’t mean you have to be left out in the cold. A franchise lawyer can write an addendum to the franchise agreement that will clarify your monetary input, your territory, or any termination issues. - Protect the franchisee’s rights.
Believe it or not, some franchisees take legal advice from the franchisor, and that is just asking for trouble. Whose best interests are the franchisor and their lawyer team protecting? Their own! Although you may not want to spend the money, especially if you are already paying all the startup costs of buying a franchise, you need someone fighting for you. - Continue to solve problems as the contract continues.
If you hire a franchise lawyer, they can help you every step of the way. Sometimes a contract might be re-negotiated, or something like a natural disaster (or worldwide pandemic) might crop up that causes the terms of the contract to change. No matter what happens, your franchise lawyer understands the fine print and will work with your best interests in mind.
There are many ways that a franchisee attorney will have your back. Having trained lawyers like the ones at Drumm Law when you are a prospective franchisee is important so that you have the fairest relationship. Your lawyer will also help you weather any storm that comes your way, whether caused by economic issues, disagreements, or actual natural disasters.