Hiring a Franchisee Attorney Is an Investment in Your Success

If you are a franchise owner, you may believe that you are in an unequal position when bargaining with your franchisor and in many cases you would be correct. Dealing with a franchisor effectively almost always requires legal guidance from franchisee lawyers with experience serving franchisees. A franchise attorney can help you with renewal of your franchise contract, transfer or sale of your business, relocation, and franchise default or termination.

If You Are Considering Buying a Franchise

In theory, owning a franchise is a great way to be your own boss and achieve financial success. In many cases this is true, but if you are considering buying a franchise, you want to go into it with all the facts you need. A franchisee lawyer can review your franchise disclosure document, help you negotiate your franchise agreement, review related agreements like software licenses, and help you negotiate your lease for your franchise location.

The Franchise Contract

You should never sign a franchise agreement without having it thoroughly evaluated by a franchise attorney. He or she can help you negotiate changes to terms that are unreasonably onerous to you, and can help you determine which state's laws govern any potential disputes in the future.

Wrongful Termination of a Franchise

Sometimes franchisors attempt to terminate a franchise agreement or refuse to renew it without a valid reason. Sometimes franchisors do this in order to take over the franchise location, and unfortunately, some franchisors engage in discrimination based on race, religion, or another illegal reason. Experienced franchisee lawyers can, in some cases, prevent franchisors from terminating a contract or refusing to renew it.

When Litigation Is a Possibility

Sometimes franchisors engage in activity that forces franchisees into business practices that cause the franchise to fail. The franchisor may encroach on the area around the franchisee's business until the franchise fails so that the franchisor can take it over. A franchisor may sell franchises only to collect the initial franchise fees, while knowing that the new franchise will most likely fail. This is illegal, and a good franchisee attorney can help you put a stop to it.

You Can't Afford Not to Work with a Franchisee Law Firm

If you're considering buying a franchise, you're making one of the biggest investments of your life. Maybe you don't feel like you can afford the rates charged by franchise law firms, but investing a little time and money up front can prevent major headaches later. If nothing else, you should work with a franchisee law firm to go over your Franchise Disclosure Document before you close the transaction.

Selling a Franchise

If you want to sell your franchise, you should talk with your franchise law firm beforehand. Your attorney will explain what you are required to disclose to potential buyers, interpret the terms of your franchise agreement concerning selling, and help you understand the risks involved in selling. Franchise law firms are also able to thoroughly check out any potential buyers and notify you if they have had legal troubles in the past.

Predatory Franchising and College Students

Predatory franchising is designed to sell franchises that will fail so that crooked franchisors can pocket fees and go on to the next victim. Believe it or not, some of these franchisors participate in college job fairs and target students, particularly in areas where summer jobs and part-time jobs are scarce. If you're a college student who has been contacted by a franchisor, you should speak with a franchise attorney before taking any action.

Problems With Franchise Renewals

If there is no explicit renewal provision in the franchise agreement, and when state or federal law cannot be used to imply that a right to renewal exists, you may be out of luck. Here's an example: in 2002, H&R Block franchisees sued H&R Block over Block selling tax services in franchisees' territories. Block countersued, seeking a court order to terminate franchisee agreements when existing franchise contracts expired, and won.

Franchises and Federal, State, and Common Law

Federal law and common law provide little to no protection in general to franchisees. State laws vary and can be interpreted in multiple ways. Work with a franchisee attorney before signing any franchise contract. He or she can spot potential risks before you find yourself stuck in an agreement that is detrimental to you.

When Should You Contact a Licensing Lawyer?

When you sell licensed products (such as a product with a sports team's logo on it), you generally have to pay an advance royalty as well as ongoing royalties. The advance royalty is a flat amount paid up front, and ongoing royalties are a percentage of your sales. An attorney can help you understand the royalty terms of a licensing contract before you commit yourself to the contract.

You Have Developed Intellectual Property from Federally Funded Research

If you invent a product arising from federally funded research, the 1980 Bayh-Dole law may apply. This law gives universities and other organizations intellectual property control over inventions and other types of intellectual property developed from federally funded research. This law gives preference to universities, businesses, and nonprofits over the federal government when pursuing patents.

You Are a Software Developer

If you are a software developer, you know how easy it is to pirate software and you want to protect yourself. You should contact a licensing lawyer early in the software development process to make sure that your rights as a software developer are protected at every stage. If you believe someone has stolen your intellectual property, you should contact a licensing attorney immediately.
You Are an Artist Who Believes Someone May Have Stolen Your Work

If you believe someone has stolen your written work, illegally reproduced a work of art you created, or used music you wrote without your permission, you need to speak with an attorney with experience in copyright law. Copyright law is designed to protect your intellectual property, and your lawyer can advise you as to how to pursue legal recourse.

You Are Creating a New Company Logo

If you are developing a new logo, it's a good idea to speak with a trademark lawyer before you go public with it. You're not allowed to create an image that is similar enough to an existing trademark to cause confusion. For example, you cannot create a logo consisting of a red background and white script that looks like the Coca-Cola logo for your product. Speak to a licensing attorney up front so that you can minimize the risk of trademark problems.