Quick Guide to Franchise Law Firms
Why Do I need the services of a Franchise Law Firm?
A successful business owner will likely consider franchising if they have customers in need of their services in locations other than the first location, or if the business owner has people interested in buying a franchise. The franchise will likely greatly improve the business, but there are a number of reasons all business owners should contact a franchise law firm.
Whether you’re a business owner starting up a franchise or an established franchisor, the process of creating and maintaining a franchise is a long and complicated process. The Federal Trade Commission mandates that a business owner follow specific guidelines while starting and maintaining a franchise. Regardless of the difficulty involved, franchise law firms can help you through the entire process.
What services are provided to a new franchisor?
Franchising almost always guarantees growth of your business, but you must fill out certain documents and agreements that reflect the entirety of your business. The documents you prepare in the beginning of franchising are extremely important, and a franchise law firm can help you with the following:
• Determining whether your business is suitable for franchising
• Preparing your Franchise Disclosure Document and Franchise Agreements as well registering the documents
• Registering and protecting your trademarks and intellectual property
• Establishing and registering your sales compliances programs
• Structuring your distribution agreements with certain suppliers
• Litigation involved in future franchise lawsuits
Apart from your Franchise Disclosure Document, a franchise law firm can also help a new franchisor obtain and fill out these necessary forms:
• Business and Marketing Plan
• Operations Manual
• Trademark Registration
• Patents for Existing Products
• Audited Financial Statements
• Franchise Agreement
• Franchise Registration Application and other supporting documents depending on your state
What services are provided to a practicing franchisor?
If you are already a practicing franchisor, you’ve probably already noticed the growth of your company, and you’ll want to take the correct legal measures to ensure your franchise is protected in the future. A franchise law firm will be able to protect parts of your franchise, such as propriety product sales and earnings claims, from lawsuits in the future. A franchise lawyer will be able to help you with the following in order to protect your franchise:
• Revisions and renewals of your Franchise Disclosure Document
• The formation of an area development and master franchise program
• The protection of future intellectual property and trademarks
• The formation of distribution agreement with suppliers
• Renewals and registrations for your specific state
• Corporate counseling
How can I find a Franchise Law Firm?
You can use several different sources to find a franchise lawyer in your area. Some sources may prove better than others, and certain sources will put you in touch with a lawyer must faster than others. The list of resources provided below are not all measures you can use to contact a franchise law firm, only some of the more important sources:
Laws.com
As you’ve been reading this article and other articles about franchising, you may have noticed advertisements for certain lawyers and franchise law firms appearing within certain documents. These advertisements are just simple advertisements; they attuned your specific needs and searches within the franchise articles.
The website uses an algorithm that matches a lawyer’s specific services to clients searching for similar services within a certain geographic location. This method of searching will put you in contact with a franchise law firm almost immediately.
State or County Bar Association
You might want to check into your local lawyer associations for help in finding a franchise law firm. The association will be able to point you in the right direction. However, if you look through the listings yourself, you’ll likely find a long, unorganized list of attorneys that may take a long time to look through.
American Bar Association’s Forum Committee on Franchising
Here you can find contact information for franchise law firms, as well as current issues in franchise laws and other events.
Personal Referrals
If you know someone with a successful franchise, ask them what franchise law firm advises them. Successful franchise law firms are likely to produce and advise successful franchises. Ask the person you know what you can do before contacting the attorney or firm. They may advise you to obtain certain financial and company documents before contacting the legal service.
What kind of franchise laws exist under the Federal Trade Commission?
There are three general types of franchise laws under the FTC. You should know these laws even if your lawyer is likely to advise you on the following issues. If you have a general understanding of the laws, you’ll be able to talk with your franchise law firm more confidently and informatively.
Disclosure Laws
These types of laws regulate pre-sale disclosures, prohibit certain franchise sales practices, and order a waiting period between any franchise sale. If a franchise sale occurs, there are certain disclosure laws that apply to the Uniform Franchise Offering Calculator (UFOC) that exists in most states. These laws provide detailed provisions for the franchisor and timetables they must work within when giving the UFOC to a prospect. These laws include:
• the UFOC must be given to a prospect before the first face-to-face meeting about the sale of the franchise
• the UFOC must be given at least 10 business days before the prospect signs any agreements with a franchisor
• the UFOC must be given at least 10 business days before a prospect pays any money
• a complete version of the franchise agreement must be given to the prospect at least 5 business days before paying any money or signing any agreement
The proper franchise law firm will go over any necessary disclosure with a franchisor, and if you have any questions about any registration or relationship laws, you should ask your lawyer to answer any of these questions.
