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.
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