Why Do You Need a Franchising Lawyer?

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• Why Do You Need a Franchising Lawyer?

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Introduction

• You've decided to invest in a franchise. You've
  finished your study, weighed your alternatives,
  and chosen the ideal franchise company. You're
  eager to begin at this exciting time! However,
  it's imperative that you speak with a lawyer
  before you sign anything so that you are aware of
  what you are agreeing to and what to anticipate.
  After all, investing in a franchise is not cheap.

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• Legally binding franchising documents are packed
  with crucial information that you can overlook if
  you don't have a knowledgeable franchising lawyer
  by your side. While seeking legal counsel is
  never cheap, it will be money well spent because
  you are investing in your future personal and
  financial well being.

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Some of the Basics

• An attorney can help a franchisee every step of
  the way, including
• Evaluation of the franchisor, the opportunity,
  and the Franchise Disclosure Document (FDD).
• Guidance for franchisee associations and help
  with collective bargaining.
• Review of the lease for a potential business
  location for a franchise.
• The potential negotiation of a franchise
  agreement prior to signing it (keep in mind that
  some franchises do not offer negotiation).
• Arbitration, litigation, and mediation assistance
  for franchisees.
• Help and guidance in terminating a franchise
  agreement.

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Reasons To Hire A Franchise Lawyer

• As opposed to a brochure or an article describing
  a company and its accomplishments, the legalese
  of a franchise deal is more difficult to read.
  The vocabulary used or the manner the contract is
  written may make it difficult for you to fully
  comprehend what it is saying. Knowledgeable
  franchising lawyers can explain the terms to you
  and possibly save you from a mistake you might
  not be able to anticipate on your own. Before you
  sign any documents, your attorney can give you
  advice on the opportunity and tell you if it has
  the potential to become successful in the future.

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What to Look For in A Franchise Lawyer

• Your lawyer ought to have extensive knowledge of
  the franchising business. He or she will be able
  to navigate the agreement process for you and
  explain to you why certain clauses are worded the
  way they are.
• A lawyer should be well-versed in the rules and
  legislation governing franchising in your state,
  whether they only work with franchisees or also
  represent franchisors (in which case they might
  have a bigger advantage because they have a
  balanced perspective on the sector). Lawyers with
  experience and expertise will be able to identify
  when certain clauses are unusual and should be
  questioned. They will also be able to explain why
  specific clauses are present in the agreement.
  Specialized attorneys are aware of the where and
  when parts of the agreement can be negotiated.

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When Should You Hire A Franchise Lawyer?

• Before you sign your franchise agreement, you
  must have it reviewed by a franchise attorney. He
  or she will also be required to perform an
  exhaustive study of the FDD. While some
  franchisors may be happy to provide you their FDD
  right away, others won't give it to you until
  they have determined that you are a legitimate
  candidate for franchise ownership. Keep in mind
  that they have to legally deliver the FDD prior
  to your initial in-person meeting.
• You're prepared to engage a franchise attorney
  once you get the FDD. You should check the
  materials on your own before meeting with him or
  her and be ready to raise any questions or
  issues. Your franchise lawyer will assist in
  translating the lengthy quantity of "legalese"
  included in FDDs into understandable words.

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Final Thoughts

• Due to the industry's shown ability to provide
  benefits to both the franchisor and its potential
  franchisees, the majority of successful business
  owners or entrepreneurs with a fresh business
  concept will think about franchising their
  business or concept.
• The franchise business model offers a franchisor
  a lot of power, and when authority is misused,
  horrible things can happen! The Agreement should
  be reviewed by one of our knowledgeable attorneys
  if you are a franchisee, and if you are a
  franchisor, we can advise you on how to
  successfully exercise that power while adhering
  to the Code and acting in a way that benefits all
  of the franchisees in your network. to put
  electricity to good use.