Part 1 of this blog series addressed business issues to consider in deciding whether to franchise your business and preparations to be made before launching a franchise program. Part 2 of this blog series addressed preparation of the legal documents required under federal and state franchise law - the Franchise Agreement and the Franchise Disclosure Document. This blog addresses state registration of franchises.
So you want to franchise your business... Part 2 of 4
Part 1 of this blog series addressed business issues to consider in deciding whether to franchise your business and preparations to be made before launching a franchise program. This blog assumes that you have made the decision to franchise your business and you are ready to engage a franchise attorney to assist you with the legal compliance. The first step in legal compliance is to prepare a Franchise Agreement and the Franchise Disclosure Document required by federal and state franchise laws.
So you want to franchise your business.... Part 1 of 4
You may be considering franchising your business for a number of reasons. You may want to expand your business but don't have the capital to open numerous additional locations on your own. You may have people approaching you about buying a franchise because they love your business concept. You may like the idea of the brand and business you have built opening up in locations all over the country. However you come to the point of considering franchising, there are some initial steps to take before you launch into establishing a franchise program.
Leases from the Franchisee's Perspective
The site selection process for franchisees can be a tedious endeavor. You must find a location with the correct square footage, layout, accessibility, and demographics in the area that you and the franchisor have agreed you will establish the franchise. Once you have found a suitable location, you might be tempted to sign the lease without having an attorney review it and negotiating terms, not wanting to risk going through the search process yet again. This is a dire mistake and could negatively affect the success of your franchised business going forward.
Two-Part Series: Leases from the Franchisor's Perspective - Part 2
Details on the Itemized List
Two-Part Series: Leases from the Franchisor's Perspective - Part 1
Franchisors whose business model involves physical locations for their units have certain specific interests and concerns relating to the leases entered into between their Franchisees and the Franchisees' landlords. Franchised locations, by virtue of being physical and visible to the public, can develop an ongoing brand awareness associated with their locations. Franchisors strive to protect that brand awareness by imposing certain restrictions and conditions on the Landlords who own and/or lease those locations.
Looking to Buy a Franchise? Why You Should Hire a Franchise Attorney
If you are considering the purchase of a franchise, what is the value in hiring a franchise attorney? Purchasing a franchise is an extensive, and sometimes overwhelming, process that covers business, financial and legal issues. Since a franchise is typically a significant investment and long-term commitment, you are well advised to work with professional advisors along the way. So why should you hire a franchise attorney?
Looking to Buy a Franchise? Your Due Diligence in Conjunction with Our Legal Review
When we assist prospective franchisees considering the purchase of a franchise, we review the Franchise Disclosure Document and Franchise Agreement. We want you to understand your legal obligations under the Franchise Agreement and other franchise requirements before you make the decision to purchase a franchise. We will provide you with our assessment of the information disclosed in the Franchise Disclosure Document and our assessment of your rights and obligations and the franchisor's obligations to you under the Franchise Agreement by delivering to you a written memo and discussing it with you.
Congratulations to Alissa Verson on Being Elected as a DuPage County Bar Association Director
Congratulations to our associate Alissa Verson on being elected to the Board of Directors of the DuPage County Bar Association. She will fill one of the Director positions designated for lawyers practicing seven years or less. Since becoming a licensed attorney in 2016, Alissa has been getting involved in the DuPage County Bar Association. In March 2018 she shared her singing talents by performing in the DCBA's annual Judges' Nite musical comedy which is an annual fundraiser for the DuPage Legal Assistance Foundation.
The FDD annual update is done. Do we really have to amend?
All franchisors and their legal counsel focus on the annual Franchise Disclosure Document update that must be completed within 120 days of the franchisor's fiscal year end. Typically, everyone is relieved that the project is done for the year. However, franchisors have an ongoing legal obligation under both federal and state franchise laws to amend the FDD during the year if a material change has occurred.
