It isn’t uncommon for prospective franchisees to look for ways and means of saving some money when they are about to venture into a new business.
At this point of time, hiring the services of a franchise lawyer may seem like an undue expense, especially since you have so many other costs to take into consideration.
However, keep in mind that purchasing a franchise business is a very important decision in your life and hiring the services of a legal expert, should be looked upon as an investment. Having said that, it’s important to identify a good franchisee lawyer and know how to get the best return on investment. There are a number of benefits to working with a legal expert in the field.
Look for a skilled franchise lawyer that has experience in the franchising species and handles issues related to franchising on a regular basis. This professional would:
It is a good idea to consult the franchise lawyer before you actually sign on the dotted line. In the event that you have already finished signing the franchisee agreement, it significantly limits your ability to negotiate any changes if required. Sometimes, this can leave you with a very expensive problem on your hands, especially if you happen to change your mind and decide against proceeding with the business.
The lawyer whose services you engage would be able to explain all the main provisions in the agreement in simple terms as well as what the reasons behind them are. This step is crucial in ensuring that both, the franchisor and you are or on the same page with reference to your obligations.
A franchisee agreement is rarely cut and dry, and there is always scope for negotiation. The lawyer would be able to identify the clauses within the agreement that don’t really work well in your favour. They will provide you with detailed advice on which changes need to be made in order to have a more balanced agreement. However, a franchisor would need very good reasons before they amend any of their documents.
The lawyer will also keep a detailed a record of promises the franchisor has made to you in the primary agreement or the ancillary agreement. It is very important that you maintain complete transparency with your lawyer.
Engaging the services of a good lawyer to review all the agreement documents before you sign on the dotted line, is one of the best ways to save you a significant amount of money, time and trouble in the long term. When you have complete clarity about your legal rights from the get-go it would help you avoid any problems in your agreement.
In addition, you also get a very clear idea of aspects that can impact your profit margin and can take steps to veer away from them. Your franchise lawyer will also provide you sound advice on your rights and obligations under the code that governs franchises.
Thanks for reading,
The Franchise Institute Team
1300 855 435