Monday, September 24, 2012

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.

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