Franchise Attorneys–Who are they and when to involve them

A franchise attorney provides legal counsel and representation to franchisors and franchisees. They can also arbitrate franchise disputes and reconcile disagreeing partners. The scope of a franchising lawyer’s work is not limited to the functions mentioned above; it can extend to other things.

Franchises are typically lucrative and highly rewarding if run properly, but they can sometimes provide bitter lessons and experiences. If you’re a prospective franchisee investor, you should consult a franchise attorney to avoid surprises or unforeseen difficulties. The attorney will guide you and protect your business interests.

When to Involve a Franchise Attorney

When Buying a Franchise

Franchise lawyers handle many franchising cases and transactions, and they can quickly tell whether prospective franchise investments are viable, rewarding, or not worth the effort. Establishing a franchise is complex and requires a franchising expert.

A franchise relationship is governed by a franchise agreement, requiring collaborative effort from the franchisor and franchisee. Most franchise agreements are drafted with the franchisor in mind, jeopardizing the franchisee’s interests. Franchise lawyers can help you prepare a fair franchise agreement to avoid future disputes.

Dispute Resolution

Misunderstandings are not exclusive to franchises; all businesses encounter dispute challenges at some point. Business partners visualize issues differently, which can cause disputes. Most franchise agreements contain a dispute resolution clause, but some lack the clause. If your franchise agreement lacks a dispute resolution clause, you should consult a franchising attorney to safeguard your business interests. Most franchise disputes are related to:

Royalty sharing.
Disclosure issues.
Compliance issues.
Contract breach.
Breach of contract.

Selling a Franchise

A franchise is a business relationship between a franchisor (owner) and franchisee (prospective investor) where the franchisee acquires exclusive rights of duplicating the franchisor’s business model. The franchisor must issue a pre-sale disclosure to buyers, and it should be drafted by a franchise attorney. This means that franchisors need franchise attorneys to help with pre-sale disclosures.

Terminating Franchise Agreements

You should follow the proper legal channel if you’re a franchisee and terminate the franchise agreement. Otherwise, you can possibly be sued. The franchisee cannot terminate franchise agreements willy nilly.

Legal Representation

Franchising lawyers are skilled in providing legal representation and counsel to prospective franchisees. Franchising is ideal for all types of businesses, but the following are the most popular types of franchises:

Hotel and restaurant franchises.
Printing franchises.
Retail franchises.
Wellness and healthcare franchises.
Real estate franchises.
Entertainment franchises.

You should ensure your interests are protected by involving a franchise attorney if you’re considering a franchise.