Yes, you should enter into a contract agreement with a franchise attorney by your side. The particulars of the FDD and Franchise Agreement require someone who can understand the legalese and help you avoid problems even before they arise. Although there are many great lawyers worldwide, you will want someone on your side who can comprehend all the legalese. Here is why you need a franchise contract lawyer to buy a franchise.
How a Franchise Contract Lawyer Can Help
The Franchise Disclosure document covers 23 items you need to understand and agree with before you sign off and purchase a franchise. Several of the essential elements are listed below.
Fees
As you would expect, there are numerous fees when it comes to opening a franchise. Have your franchise contract lawyer review the start-up fees and your economic responsibility for the franchise to run. You can expect to pay royalty fees but also may be responsible for technology fees or branding fees. A well-trained franchise attorney will help you gain a fair monetary agreement before you sign the contract.
Rights
When you purchase a franchise, you will gain the rights to use the branding and models of the business. Your franchise contract lawyer will make sure the rights are outlined appropriately.
Non-compete clause
If you enter a franchise contract, you will likely need to sign a non-compete clause, so you do not try to open a business that is similar in scope while you are working for the franchisor. A non-compete clause will usually last several years after terminating the franchise agreement.
Territory
Your franchise contract lawyer will help you understand the territorial rights or rules when considering the franchise. You may be limited to a specific geographical area, or there could be certain zip codes where you are not allowed to go. Your qualified franchise attorney will help you figure this out.
Get Help Negotiating Franchise Agreements
A franchise contract lawyer like those at Drumm Law can read the Franchise Agreement before you sign on the dotted line and draft a list of items that may be of concern. Many items can be negotiated, and your franchise attorney can make the most of the franchise agreement on your behalf. These items include:
- The negotiation could limit the responsibility incurred, personally, if a franchise closes.
- A franchise lawyer can help you by lengthening the time a franchisee has to open the store.
- An appendix could expand or outline the territory in which you are allowed to open your franchise.
- The negotiation could permit transfers for real estate.
Hiring a franchise attorney like Drumm Law will save you time, money, and hassle as they truly read and understand your FDD and Franchise Agreement.
Hire Drumm Law as Your Franchise Contract Lawyer
Drumm Law is a virtual law firm. Unlike our competitors, we do not have an expensive downtown office and the overhead that comes along with it. We call, email, text, Skype, chat, “goto,” webinar, Facebook, Linkedin, meet, tweet, and greet our clients. We have attorneys throughout the country. While we have conference rooms available when needed, we prefer to meet our clients over lunch or drinks. Contact us to book a consultation!