A lot of people are happy to work for others throughout their lives. There are others who prefer to go into business for themselves by purchasing a franchise that gives them the opportunity to become an independent business owner offering a product or service with instant name recognition and an established reputation. If this is something that interests you, you need someone experienced in the franchise and dealership law Illinois firms handle for franchisees.
The Federal Trade Commission requires all franchisors to provide potential franchisees with a copy of their Franchise Disclosure Document or FDD, which outlines the terms and conditions involved in this business partnership. These documents tend to be complicated, lengthy, and full of legal language unfamiliar to most. You will need a good lawyer to go over this paperwork carefully, explain it to you thoroughly, and point out any areas of concern.
The FDD may be the first document you encounter, but it won't be the last. The franchisor's attorneys will draw up a contract agreement that will contain the specifics of your business partnership. Before you sign this legal document, you should clearly understand the terms. It will probably include items such as audit rights, insurance, guaranties, time dedication, transfer restrictions, and dispute resolution.
You will probably be unfamiliar with these types of documents and won't know how they compare to other agreements. If you have an attorney experienced in this area of the law, you will have someone on your side to tell you whether the terms are routine or unusual. If there are items in these documents that concern you, this professional can explain them.
Lawyers for the franchisor may indicate that the contract they offer you is non-negotiable. This is standard operating procedure. Your attorney will probably advise you that certain items like royalty structures and initial fees are not negotiable, but other items can be amended. You can often negotiate transfer of ownership, protection of territory, audit expenses, indemnification, and non-compete clauses.
There is more to going into business than negotiating with the franchisor. You may need legal advice on whether to start an s-corporation, limited partnership, or limited liability company. You might need someone to negotiate lease agreements, establish ownership agreements, and interview key personnel.
Not all lawyers have expertise in this field, and before you hire someone, you need to do some research and ask some questions. You should feel free to ask this professional how many franchises he or she has worked on and how many disclosure documents they have actually read. If the lawyer is someone who gives lectures to other professionals or has published articles in this field of the law, you will want to know that.
Franchises can be great opportunities for the right people. If you are considering trying it, you need to contact an experienced professional to help you navigate the process. It can make all the difference in the long run.
The Federal Trade Commission requires all franchisors to provide potential franchisees with a copy of their Franchise Disclosure Document or FDD, which outlines the terms and conditions involved in this business partnership. These documents tend to be complicated, lengthy, and full of legal language unfamiliar to most. You will need a good lawyer to go over this paperwork carefully, explain it to you thoroughly, and point out any areas of concern.
The FDD may be the first document you encounter, but it won't be the last. The franchisor's attorneys will draw up a contract agreement that will contain the specifics of your business partnership. Before you sign this legal document, you should clearly understand the terms. It will probably include items such as audit rights, insurance, guaranties, time dedication, transfer restrictions, and dispute resolution.
You will probably be unfamiliar with these types of documents and won't know how they compare to other agreements. If you have an attorney experienced in this area of the law, you will have someone on your side to tell you whether the terms are routine or unusual. If there are items in these documents that concern you, this professional can explain them.
Lawyers for the franchisor may indicate that the contract they offer you is non-negotiable. This is standard operating procedure. Your attorney will probably advise you that certain items like royalty structures and initial fees are not negotiable, but other items can be amended. You can often negotiate transfer of ownership, protection of territory, audit expenses, indemnification, and non-compete clauses.
There is more to going into business than negotiating with the franchisor. You may need legal advice on whether to start an s-corporation, limited partnership, or limited liability company. You might need someone to negotiate lease agreements, establish ownership agreements, and interview key personnel.
Not all lawyers have expertise in this field, and before you hire someone, you need to do some research and ask some questions. You should feel free to ask this professional how many franchises he or she has worked on and how many disclosure documents they have actually read. If the lawyer is someone who gives lectures to other professionals or has published articles in this field of the law, you will want to know that.
Franchises can be great opportunities for the right people. If you are considering trying it, you need to contact an experienced professional to help you navigate the process. It can make all the difference in the long run.
About the Author:
Get an overview of important things to consider when selecting a franchise and dealership law Illinois practitioner and more information about an experienced attorney at http://www.cdcaruso.com right now.
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