Sue Your Franchisor

There are many benefits to hiring a franchise attorney to guide you through the day-to-day legal and financial maze that business owners are faced with. A franchise attorney will start out by helping you carefully read and understand the franchise disclosure agreement before you invest a penny. Your franchise attorney will also advise you on the type of business entity that you should create, such as a sole proprietor, partnership, corporation or subchapter S corporation. Your franchise agreement can even help you select a location and negotiate a lease that could save your positive cash flow in the early years. In addition, a franchise attorney can create a team of attorneys to help you to build a case to sue the franchisor is things go wrong.

What could go wrong you say? To start with, did the franchise documents underestimate the amount of prior experience you needed before opening a franchise? Did they exaggerate the amount of profit that you could make in your specific location? Did the franchise agreement put you in touch with other franchisees and did they disclose the names of franchisees that failed so that you could contact them? Is the franchise competitive in your specific area or will the competition be able to undercut you? Did the company offer all of the help you expected to finance and locate your branch of the franchise?

These are just an example of a few of the things that go wrong every day in disputes between franchisees and franchisors. You may need to sue your franchisor if the financial disclosure agreement failed to adequately address all these issues as well as others. If you are “disenfranchised” by the actual franchise performance you are achieving and feel that the franchise spokesperson or salesperson oversold the offering or made false claims, give franchise attorney Mario L. Herman a call. We can ascertain if you have a case.