How Can a Franchise Lawyer Help Your Franchise Succeed?

A franchise is often the biggest investment a person makes, so it is critical that potential franchisees thoroughly research the franchise they're considering buying. Franchise law firms have experience in reviewing and interpreting Franchise Disclosure Documents (FDDs) and other associated documentation. Your lawyer should thoroughly review the FDD and the franchise agreement and should apprise you of any potential legal or business issues you should be aware of. Breach of Contract Cases If a franchisor fails to provide promised training or support, changes the business format, or invokes new requirements, the franchisor may be guilty of breach of contract. When this occurs, you may suffer any number of consequences as a franchisee. In some cases, breach of contract allows you to get out of the franchise agreement, or be awarded damages. An experienced franchise lawyer will help you determine the best way to proceed. Franchise Encroachment Cases If your franchisor invades your territory by, for example, placing new franchise units unreasonably close to yours, the franchisor may be guilt of encroachment. This practice is becoming more common, but depending on how your franchise agreement is structured and what is in your FDD, you may be able to stop your franchisor from encroaching or recover damages if encroachment has already occurred. Even if your franchise does not have a designated territory, you are entitled to protection against predatory encroachment. Fraud and Misrepresentation Cases Fraud is serious business, and if your franchisor did not deliver the franchise you thought you were buying, you could have a claim for fraud or misrepresentation. Franchisors may use claims of high profits to get you to buy a franchise, falsely tell you they have a proprietary product or service, or deliver a system that is different from what you thought you were buying. Franchise law firms pursue cases of franchisor fraud, and franchisees may recover damages from the franchisor and sometimes from its owners and officers. No matter the size of the franchise investment you're considering, investing in the help of an experienced franchise lawyer up front can mean the difference between business success and unforeseen and complex legal problems.