what to know about hiring a franchise lawyer

Opening a franchise involves investing a large amount of money, time and resources. For this effort to be beneficial, you will have to give careful consideration to a few aspects. An important aspect to consider when getting into a franchise deal is ensuring that the contract terms are fair and protect your interests as well as those of the franchisor. To draw up the necessary documents and help you understand the legalities involved in the process, hire a franchise lawyer. Here are some questions most franchisees ask before hiring a franchise attorney:

Who is a franchise attorney?

A franchise attorney specializes in franchise law. The attorney offers legal help to people starting in a new franchise, purchasing a franchise or operating one. He helps you understand details pertaining to the license or permit you need to market a particular company’s services or products. You must necessarily get this marketing permit to open a franchise and conduct business using the franchisor company’s brand, logo and products.

What does a franchise lawyer do?

Franchise attorneys help franchisees understand rules and regulations specific to the franchise business. For instance, your franchise attorney can help you understand the first document involved in the deal- Uniform Franchise Offering Circular (UFOC). This document- soon to be renamed Franchise Disclosure Document (FDD) - is lengthy and contains details about any bankruptcy or litigation the franchisor company has faced in the past. These details are very important as they can have a bearing on your investment and the risks you take with the franchisor company. The terms stated may not be easily comprehensible to a franchisee. A franchise attorney will be able to help you comprehend these documents.

How can a franchise attorney help you?

As you proceed through the franchise deal, you will receive a franchise agreement for reviewing. This document details the rights and obligations of both the franchisor and franchisee. A franchise attorney will help you understand these rights and responsibilities. As the document is sent by the franchisor, there may be some terms that are not favorable to you. Your franchise attorney negotiates the franchise agreement on your behalf, doing his best to get you favorable terms. In addition to this, your lawyer also analyzes your contract to verify if it adheres to state and/or federal laws.

How can I hire a franchise lawyer?

One of the best ways to find a franchise attorney is to ask relatives, colleagues or acquaintances for referrals. If you know someone who owns a franchise and has most definitely used the services of a franchise attorney, then you can approach them for the attorney’s contact details. Another way of finding a good franchise attorney is to ask your family lawyer or legal advisor for franchise attorney referrals. You can also approach the American Bar Association for referrals. The internet is also a useful resource to help you locate a suitable franchise lawyer in your city. It is advisable to check the lawyer’s background and work history before you hire his services.

About the Author

For more information on a Toronto lawyer or a franchise lawyer , contact Heydary Hamilton PC.

(saran). Submitted on Wed, 1 Feb 2012 Time: 7:16 PM

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