Franchise Legal Advice - Do I Need It?
Buying a franchise or business opportunity is a big decision. Consulting with an attorney who is experienced in franchising and business acquisition is often advised. Read more below for guidance on involving legal counsel.
If you are considering purchasing a franchise or investing in a business opportunity we suggest that you seek the advice of an attorney early on in the buying process.
When investing in a franchise you need to make certain that you understand and have carefully considered and assessed the information disclosed in the Franchise Disclosure Document (FDD) and the Franchise Agreement.
An attorney can assist you in the following key areas:
- Reviewing the Franchise Disclosure Document (FDD) and all related franchise agreements.
- Preparing an analysis of the franchise documents.
- Negotiating with the franchisor on the details of the franchise agreement.
- Preparing shareholder agreements and/or operating agreements.
- Assisting with other legal documents such as a real estate leases and equipment leases.
While no one likes the idea of having the additional expense of hiring an attorney to assist you in buying a franchise, it may ultimately save you thousands of dollars and eliminate potential problems and future challenges. Simply put, the cost of not hiring an attorney for guidance will far outweigh the cost of hiring an attorney up front during the buying process.
When selecting an attorney, make sure to pick an attorney that has experience in helping people buy and sell franchises. It will pay dividends to have an attorney who is familiar with buying and selling of franchises and businesses -- they will be able to hone in on what's important throughout the buying process and better insure your interests are protected. One good resource for helping you find an attorney is the International Franchise Association Supplier's Directory
You can also find out additional information at the American Bar Association
We wish you all the best in your search for the perfect franchise or business opportunity!