Franchising is regulated at the federal level by the Federal Trade Commission and at the state level by different agencies depending on the state. Franchisors must comply with both federal and state regulations and provide you a franchise disclosure document (the FDD) that details the offering and gives you certain information about the business offering, the contract provisions and the background of the franchisor. The document can be an invaluable resource in your due diligence, but it can also be a burden to read and understand for those unfamiliar with franchising or looking at an FDD for the first time. We have been reviewing and negotiating franchise agreements on behalf of franchisees for decades.
At the end of the day, the franchise agreement is what you will sign and what will govern the relationship between you and the franchisor. It is imperative that you understand your role as a franchisee and your commitments to the franchisor. You want to go into the relationship with a clear understanding of what is expected of all parties. Our role is not to tell you whether it is a good business idea or not: that is for you to decide. Our role is to help you understand the fine print and, if appropriate, ask for concession through a negotiated amendment to the franchise agreement. Every agreement, system and situation is different and we tailor our representation to your particular situation, your needs and your goals as a business owner.
After we have been engaged, our first step is a thorough review of the FDD and the franchise agreement. We will give you written comments on our findings. The next step is a conference call with you (and any business partners or spouses) to discuss our findings, to identify any outstanding issues and to develop a game plan to discuss your needs with the franchisor. The last step is for us to negotiate the remaining issues with the franchisor and to prepare a signature-ready final version of the amendment. The entire process typically takes between 10 to 14 days after you have engaged us for our review.
In most instances we offer a flat fee to clients for the review of the FDD & Franchise Agreement. Please call us today 215-525-1165 for more information and to discuss the specifics of your situation. We look forward to talking with you and helping you on your journey toward business ownership.