Franchising is a common business model that companies use to expand their brand and business. The franchisor is the company that has developed the system and processes, while the franchisee is the third party that hopes to contract for the right to operate a branch of the business. Moreover, due to the importance of the franchisor’s brands and related intellectual property, complicated issues regarding trademarks and trade secrets may arise. Similarly, the more famous the franchise, the more complex the relationships and agreements governing the relationship are likely to be.
The Federal Trade Commission as well as several states have specific laws and regulations that address the sale and commission of franchises. Many states also regulate the actual business relationship between franchisor and franchisee because the operation of a franchise often requires substantial investment of capital by the franchisee. As such, states often vary in the amount of regulation they provide depending on how much protection they feel is owed to the franchisee and its investment. All of these complexities contribute to the difficulty many franchisees encounter when trying to enter the field.
Despite this, however, many franchisees still fail to seek legal counsel before they enter into one of the most important legal contracts of their lives, sometimes mistakenly believing that there is no room for negotiation in franchising agreements.
Utilizing legal counsel can ensure that you secure the necessary legal protections and advantages before you sign a franchising agreement. Having experienced counsel by your side can help you negotiate for business arrangements that suit your needs. Our franchise law attorneys have the necessary in-depth knowledge of applicable regulatory requirements as well as experience in drafting and negotiating the complex business agreements that regulate the franchisor-franchisee relationship.
Our attorneys also have experience representing franchisors in creating and developing franchise systems compliant with all relevant laws and regulation while also being in line with system objectives. After formation, our attorneys and experienced staff can manage the regular registration compliance and renewal process and provide enforcement services to ensure compliance within your system to contracts and laws.
Our attorneys can help you coordinate individual franchising opportunities with entrepreneurs while taking you through the negotiating process from beginning to end. Our franchise attorneys can also create and negotiate franchise disclosure documents, franchise agreements, and related instruments, in addition to managing the state registration process.
As a corporate and commercial law firm our corporate and commercial attorneys can assist with advising on mergers and acquisitions legal issues. See our Corporate & Commercial service line page for additional information about mergers and acquisitions legal services.