role of a lawyer in your franchise purchase decision

The Role Of A Franchise Lawyer In Your Franchise Purchase Decision

Working with a skilled franchise lawyer can help you secure your future as a franchise owner. These legal experts have franchise-specific knowledge, which can help keep things on track and ensure that you have all the information you need to reduce the chances of risk when signing the franchise contract.

What Does A Franchise Lawyer Do?

To put it simply, a franchise attorney, or franchise lawyer, is a legal expert specialising in franchising. A competent franchise attorney is actively involved in the franchise industry and keeps abreast of numerous changes and modifications to franchise legislation. Additionally, nearly every franchise lawyer represents potential franchisees and existing franchisees, as well as franchisors.

Things That Can Occur

Many franchisor salespeople or representatives will tell you that you do not need the services of a franchise lawyer and that nothing in their agreement is negotiable. However, some points to consider include:

It makes no difference whether or not a franchise agreement is negotiable or not.’ What is important is that you fully comprehend the agreement and that your attorney checks for red flags. Whether a contract is negotiable or not depends on the specific situation. The bottom line is that you need to recognise that the attorney’s primary function is to safeguard your interests.

Three Areas in Which Franchise Attorneys Can Assist You

If you’re considering purchasing a franchise, these are three areas where a knowledgeable franchise attorney can assist you:

1. Franchise Attorneys Study Franchise Agreements/Franchise Disclosure Documents In Their Entirety.

While you must go through all the franchise paperwork you get, there is nothing quite like having a legal expert in the field read it from their perspective. It is a well-known fact that franchise attorneys study several Franchise Disclosure Documents. However, were you aware that a sizable portion of today’s franchise attorneys also write them?

An experienced franchise attorney will likely know what to look for in your contract and other related documents. To reiterate, when you employ an attorney, you can get their opinion on the franchise agreement, the disclosure documents, as well as customised advice and counsel based on your particular circumstances.

2. Franchise Attorneys Can Assist You In Determining The Most Appropriate Business Entity For Your Franchising Venture

As previously stated, a franchise attorney’s primary responsibility is to safeguard your interests. They accomplish this in various ways, one of which is by offering guidance and advice on the correct entity structure for your franchise company. For example, should your franchise be organised as a Sole Proprietorship, Corporation, Limited Liability Company (LLC) etc?

Operating a franchise business through the proper entity can help protect you and your interests if any legal issues arise while you’re running your company.

3. Your Franchise Attorney Can Assist You In Negotiating The Terms Of Your Business Lease.

Commercial leases, in general, are onerous paperwork. Furthermore, they are incredibly landlord-friendly. Given this and the fact that a business lease is a legal, multi-year financial commitment, it is incumbent upon you to ensure that you fully understand your lease responsibilities.

A knowledgeable franchise attorney with experience negotiating business leases can help you navigate your lease and perhaps negotiate better terms. As previously said, an experienced franchise attorney can advise and counsel you on your possible purchase of a franchise business.

Do Your Legwork Before Buying A Franchise

However, more than any other reason to engage a franchise lawyer when purchasing a franchise, there isn’t a single reason why you shouldn’t. When you invest so much effort, time, and money into a venture, conducting research and getting sound legal advice are crucial aspects.

Speak with other franchisees and people that have been in the field for some time to get their advice. Ensure you have a proper understanding of what is involved and whether the franchisor has a solid base and is supportive. Above all, cover all your bases by getting the advice of a skilled and experienced franchise lawyer.

If you want any more franchising information, contact the experts at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact form, and one of our experts will contact you as soon as possible to answer all your questions.

Thanks for reading,
The Franchise Institute Team
1300 855 435

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