Talk to a Franchise Attorney Before Buying a Franchise
How do you know if buying a particular franchise is a good business investment?
The answer to that question is most likely buried in the details of the franchise documents you received from the franchisor. A skilled franchise attorney can review and explain these franchise documents so you can confidently move forward with your franchise purchase, or you can choose to pursue other opportunities.
At Spadea Lignana LLC, we have reviewed hundreds of franchise documents for clients nationwide who are thinking of buying a franchise. Let us put our skills and experience to work for you. Contact one of our skilled, experienced, knowledgeable franchise lawyers at Spadea Lignana LLC today.
A potential franchisee will be provided with several legal documents that should be reviewed by an experienced franchise attorney prior to signing any agreement to buy a franchise, such as:
- Franchise Disclosure Document (FDD) consisting of 23 required items and other important information
- Franchise agreement
- Promissory notes
- Security agreement
- Software licensing agreement
A Meticulous Review
Our franchise lawyers will review the FDD to gain an understanding of the franchise and the franchisor’s background, litigation history, bankruptcy filings, and other important concerns.
We check the status of trademark(s) to make sure they are federally registered since the trademark is the cornerstone of your investment in the franchise.
We thoroughly review the franchise agreement and make note of obligations (financial, reporting, advertising, and others) that the franchisee will have to the franchisor and the obligations that the franchisor has to the franchisee.
Because of federal and state regulations, franchise agreements are not heavily negotiable documents, at best. This fact does not lessen the importance of having an experienced franchise attorney review the documents. When franchise agreements are negotiable, we may suggest revisions to make them more favorable to you. Modifications may include:
- Providing a standard of reasonableness when franchisor approval is required
- Providing adequate notice prior to the franchisor’s exercise of its remedies upon default
- Ensuring that any required indemnification by the franchisee to the franchisor is limited
- Requiring that the franchisor provide indemnification to the franchisee for any trademark infringement actions or claims
The Value of a Skilled Franchise Attorney
A skilled franchise attorney can help you in any number of ways before, during, and after your franchise purchase. Our years of experience representing prospective franchisees and reviewing franchise documents on their behalf allow us to know and understand what is typical, what is of concern and the revisions that can and should be made to the franchise agreement. In addition, we advise clients on forming the proper legal entity for their franchised business. We review and negotiate commercial leases for our retail franchisee’s business location. We develop employment policies, assist with business contracts and business transactions, and eventually, we can assist you with the sale of your business.
You are undertaking a large financial obligation. Put someone on your team who will protect your interests. Contact an experienced franchise lawyer today.