Franchising

A contract is binding. When one signs on a contract, it cannot be broken. The terms and agreements apply.

A franchise agreement is a binding contract. It defines the obligations and rights between the franchisee and the franchisor. A franchise lawyer comes in between. He reviews the contract as well as the agreement both parties signed on.

Franchise lawyers are credible to handle unique franchise agreements. For example, duplication of the concept of a business can provide consistent services. The consistency allows franchisors to establish a brand identified to them. They can also have franchised locations that are associated through networking lead to the total reinforcing of the brand to their image.

The franchisor must be protective of its brand. It also has the power to dictate issues that is indicated in a franchise agreement. Franchise attorneys must know the legality of the conditions as presented by both parties - the franchisor and the franchisee.

The franchise lawyer's task is to provide the consistency between the franchisor and franchisee in order to protect the brand. He also dictates the issues that are covered in the contract both parties signed.

If the franchise lawyer does not have the experience to comprehend these franchise matters, there is a tendency for the stipulations to be misinterpreted and his decisions are biased and favor the franchisor.

Therefore, you, the businessman, must have a financial lawyer you trust beside you when making investment decisions. A franchise lawyer specializes on those matters and would gladly review the franchise agreement before you sign.

A credible and well-reputed franchise lawyer separates the contract terms as well as the acceptable obligations set amidst the common practices in a relationship between the franchisor and the franchisee. He weighs out what is unusual or extreme.

Franchise lawyers can help businessmen negotiate with the franchisor. At least by having them on your side, you would get an explanation on the changes the franchisor would like to make and those that have the possibility to be rejected. He may also help you evaluate the opportunity after buying the franchise, as well as coming up with your future business plan.

However, hiring a well-reputed franchise lawyer is not an easy task. Ask anyone who often invests in franchise, inquire for of they know someone they can refer. Try to also ask your own attorneys or accountants whether they know a lawyer who specializes in franchising.

Also, franchise lawyers must be fully informed of all the regulations upon purchasing the franchise. FTC Franchise Regulations require the disclosure of all information such as advertising, licensing, contracting, sales and other promotions of the franchise.

Disclosures that often create an argument between franchisor and the franchisee are:

- the name of the franchisor

- any fictitious name of the franchisor

- franchisor's trademark

- the last five years business experience of the officers and directors

- whether the franchisor, officer, or director have been involved in any actions of fraud during the last seven years

- terms of the franchise agreement including details on how to modify, terminate or sell it

As a businessman, you can expand your own business instead of selling what you already sold to others. Be the franchisee and not the franchisor. If your company owns and runs a successful franchise, expect lotsa cash rolling in.

Thanks to a franchise lawyer, each move you make regarding the expansion of your business will be legal and guaranteed.