Franchisors Need Franchise Lawyers
Posted on January 18, 2011 by My Franchise Law
Operating a franchise comes with enough headaches without worrying about how your business will fare against unforeseen complications, which could be anything from natural disasters to building problems, and litigation issues. There are few options when it comes to protecting your franchise from a gamut of obstacles, but by far, the best option is to employ a lawyer who specializes in the law practices specifically designed to ensure the protection of franchise businesses. Franchise lawyers are equipped to handle every aspect of your franchise - from negotiation between franchisees, to court cases, property leases and every other eventuality.
Perhaps one of the most pervading risks for franchisors is that of a lawsuit from a franchisee. This is why the expertise of a franchise attorney should be employed. They are thoroughly skilled in creating effective, bulletproof documentation and contractual agreements that clearly states the exact terms of the franchisor-franchisee relationship, and the expected franchisee-customer relationship. The ironclad nature of these important documents is the basis for maintaining a strong, viable franchise. They can help safeguard your franchise business from competitors, suppliers and customers who raise complaints. Only a franchise lawyer will know the ins-and-outs of such preemptively-worded documents.
Outside forces aren’t the only things that could threaten the stability of your franchise business. Unfortunately, it’s not uncommon for there to be conflict between franchisors and their franchisees. After you have realized your dream (created a franchise) and bring in people to expand that dream (franchisees) you might have instances where both of you don’t see eye-to-eye. This is where a franchise lawyer becomes a lifesaver; a potential business-saver. Besides protection from outside entities, mediators and arbitrators, franchise lawyers give advice and the necessary documentation to control problems within your business. They can assist you in the transaction stage (where you and your franchisees hammer out the details of your agreement) and throughout the life of your business. A franchise lawyer’s job is continuous they will periodically review your agreements and contracts, checking for possible updates and revisions.
Another area where franchise lawyers can be beneficial to you is when it comes to making sure all of your documents are compliant with government regulations. As of 2008, the Federal Trade Commission has updated and changed the rules for franchise disclosure statements. Now, all franchises must use the amended document format. This is an example of the changing landscape of document compliance which a franchise lawyer will be knowledgeable of. They can update all of your documentation to ensure that you are complying with new governmental standards.