Posted on: 14 February 2017
In order to buy a franchise, you must go through the required legal processes and create an agreement, which details the offer made to the franchisee. Before you buy a franchise, you should be intimately aware of the restrictions and obligations of the franchisee in this transaction. Failure to abide by these restrictions and obligations can lead to termination of the contract. When handling such legal processes, it is advisable to get in touch with a franchise lawyer.
Reasons getting a franchise lawyer is a good idea
Attorneys who specialize in franchising are experts in preparing the legal documents and franchise contracts around such agreements. Franchising is a subspecialty of law that deals with all matters concerning the those types of business deals. Franchise lawyers give advice concerning the best franchise opportunities and represent clients in franchise disputes. They are well versed in franchising regulations throughout the country.
Competent franchise lawyers can give valuable advice on how to set up a new franchise business. It is important to choose the right business entity for the new franchise as this will determine all your legal rights and liabilities. The business entity will also determine the taxing process for your business. With the help of a franchise attorney, you can set up the best business system for your needs.
Some of the legal documents involved in the franchising process include franchise agreements, license agreements and distributorship agreements. These documents contain a lot of legal jargon that can be hard to understand. The lawyer will explain these legal documents to you. One mistake you should never make when handling legal documents is signing something that you do not understand.
There are all kinds of disputes that come up in franchise agreements. The franchise is supposed to disclose some necessary information to the franchisee when creating an agreement. A franchise lawyer can help when there are disputes concerning misrepresentation of earnings by the franchisor. The attorney will also step in when the franchisor fails to comply with the other disclosure requirements in the Franchising Code of Conduct. Franchise attorneys will also step in when the franchisee breaches the franchise agreement, uses the franchisor's intellectual property without authorization or during the termination of a franchise.
Working with a lawyer makes the process simpler and more cost effective than attempting to do so without one. Most franchise lawyers will have fixed review rates, but these vary from one firm to another. Remember to look out for specialized attorneys who have a lot of experience in this area of law.Share