Buying into a franchise can be a lucrative business endeavor.Â Before purchasing a Franchise you should seek the advice of a Business Attorney who will review the extensive contract that you will enter into and who will advice you of the pros and cons in signing the franchise agreement.Â
Unfortunately, many people do not seek the help of an experienced attorney before they sign a franchise agreement, and because of this, they become fraught with financial and legal perils, as they do not understand the terms and duties set forth under the agreement. If you are considering a franchise investment, or if you are about to enter into a franchise agreement, it is best that you work with an experienced business franchising attorney who can help you through the process, help you understand what you are signing, possibly change terms set forth, and help you protect your interests and meet your obligations.
A Business Attorney can Assist you with Choosing the Correct Business Structure for your business
Understanding the difference between an LLC (Limited Liability Company), an S Corporation, or a C Corporation is vital for your legal protection. Choosing the wrong structure can expose you to tremendous financial risk later on or cause you tax issues.Â Furthermore, once you chose the correct business structure, you must fully comply with all the legal requirements in order to maintain the corporate veil.Â An experienced business franchising lawyer can ensure that these requirements are met and your legal protection remains intact.Â
A Business Attorney Can Ensure the Franchise Meets Legal and state RequirementsÂ
The Federal Trade Commission requires that all franchisors provide all current and potential franchisees with a Franchise Disclosure Document detailing all information regarding the franchise business. This document may be over 200 pages and it can be intimidating at best to review. Your attorney will be able to review this document and stay abreast of changing legal statutes so that you can ensure your agreement meet all legal aspects.Â
A Business Attorney Can Protect You if Things go South or Turn Sour
Sometimes in a franchise purchase, bad things happen. Your business could lose money and close due to the fees required to be paid to the franchisor. You could also choose a poor location which will not sustain your endeavors. Before you enter into this expensive business undertaking, make sure that you understand your duties and responsibilities as well as your potential liabilities. Hiring and keeping on retainer an experienced franchise business franchise attorney, will help ensure that you are fully apprised of all legal and financial aspects of your franchise.
A Business Attorney Will be Someone in Your Corner
Not every franchisor wants you to hire independent counsel or a business franchising attorney to read over or assist you in your franchise endeavor. Such as the franchise development director may advise against it, while ensuring you that the proposed franchising agreement protects your interests and is non-negotiable. Remember, they are salesmen and not an attorney. The only way to protect your interests is through the advise of your private business franchising attorney.
If you need an attorney who can advise you as to your franchise opportunities, contact one of our representatives at Goldstein & Scopellite, PC by emailing us or by calling us at 214-351-9100. Thank you.