Why Do I Need to Consult a Franchise Attorney When Franchising My Business?
Posted on November 10, 2010 by My Franchise Law
When considering whether to franchise your business, a franchise attorney is an invaluable addition to your team, who will work to help protect your interests as you continue to grow your company. They are trained to know the ins and outs of the industry, including the risks and expenses you may face, and can also help with paperwork including all legally binding documents.
Franchising is highly regulated business model, so before you can franchise your particular business you will have to meet several legal requirements. First, the Federal Trade Commission requires all franchisors to put together a lengthy disclosure document called the Franchise Disclosure Document, which provides detailed information on your business to all of your potential franchisees. On top of federal disclosures, there can also be state-specific requirements necessary to create a disclosure document within the existing legal guidelines. The time and preparation required to file these documents can be significant, and by hiring a franchise attorney you will not only protect yourself from any oversights or mistakes, but also be able to focus your energies on other aspects of preparing your franchise for success.
In addition, you will need to prepare a franchise agreement. Because the franchise agreement is a long-term legally binding contract between you and each of your future franchisees, you will want to ensure that your interests are protected, as well as those of your partners. An experienced franchise attorney will be able to help you draw up a fair and balanced contract, covering all aspects of your business arrangement, so that you will not run into problems down the line due to vague language or unforeseen loopholes.