Why You Should Hire a Lawyer Before Buying a Franchise
You’re eyes are on the prize. You have made the decision to buy a franchise and are closer than ever to making that dream a reality. So what should your next step be?
Franchising is complicated. To help guide you through the complexities that come along with owning a franchise, many of them legal, we recommend you hire a skilled and experienced franchise attorney. Thumbing through contracts and documents, trying to decipher legalese is a heavy burden to bear, so have an expert, skilled specifically in franchise law, do it for you.
Still not convinced? Here are four reasons why you should hire a franchise lawyer before buying a franchise:
1. Franchise Disclosure Document: The franchise disclosure document, more commonly referred to as the FDD, is the single most important document that you’ll come into contact with as a franchisee. It’s legally mandated that any franchisor provide this document to a prospective franchisee, and the FDD is often quite long and laden with legalese. Skilled franchise attorneys will be able to point out things that you might have missed in your own reading of the FDD. This is extremely important because your success as a franchisee depends entirely on your full knowledge of what will be expected of you after signing up.
2. Negotiations: Armed with a full understanding of the FDD, a skilled franchise attorney will be able to negotiate on your behalf with the franchisor, ensuring that your interests are adequately represented. Franchise agreements tend to be a little one-sided, but franchisors are usually willing to negotiate certain terms.
3. Protect Yourself: The reasons that you should have a skilled franchise lawyer representing you shouldn’t really need to be spelled out. Lawyers and businesses go hand in hand. From signing the papers to purchase your franchise, to deciding how to classify your business, to expanding later on down the line, you’ll need a lawyer to make sure you’re protected.
4. Exit Strategy: The building excitement can lead future franchisees to cast a blind eye toward business realities. Not every franchise works out; in fact, a significant number of them don’t. While you may have the best of intentions, the greatest business acumen, and the ambition to succeed, that’s no guarantee that you actually will. In the event that something goes wrong, having a franchise lawyer who’s already knowledgeable about your situation and your business will be absolutely essential.
Hiring outside help to handle legal matters will give you peace of mind to focus on what really matters — growing a successful franchise.