Franchise Lawyer Guides Franchisees Through Florida Franchise Process

Opening a franchise allows you to use a proven business model, and for this reason alone franchises are popular. When buying a franchise, you should have reasonable expectations about the franchisor's profitability record, procedures, and ease of duplication of the business model. Costs should be laid out in the all-important Franchise Disclosure Document (FDD). A franchise lawyer like those at Zarco Einhorn Salkowski & Brito, P.A. can help you understand the FDD.

Franchisors Not Necessarily Protected by Franchise Disclosure Document

FDDs typically disclaim promises of profitability. These documents are worded carefully to avoid promises of profitability in general and related to specific circumstances of the franchise sale. The FDD, however, is not a perfect shield for protecting franchisors from franchisee claims if the franchise is unsuccessful. This is particularly true if the franchisor gives financial performance representations that are not included in the FDD.

Fraud Harder to Prove than Violation of Florida Franchise Act

If a franchisor, outside the FDD, makes representations about profitability and the franchisee relies on the franchisor's words or conduct about profitability, the franchisee could prove a violation of Florida's Franchise Act if he or she suffered financially based on the representations. Proving fraud requires an intentional false statement on the part of the franchisor and is more difficult to prove.

Buying from a New Franchisor

If you want to buy a franchise from a relatively new franchisor, working with a franchise law firm like Zarco Einhorn Salkowski & Brito, P.A. is a good idea. Disclaimers concerning guarantees of profitability or warranties do not necessarily successfully fend off claims by failed franchisees when the franchisor makes negligent misrepresentations. If you are considering buying from a franchisor without a lengthy track record, you should work with a franchise attorney to help you protect your interests.

Financial Performance Representations Are Key

Experienced franchisors know that any financial performance representations such as projections are risky. Franchisors can be held personally responsible for misrepresentations if there is no basis in fact for financial representations. Experienced franchisors protect themselves legally, and every potential franchisee should do the same by working with a franchise law firm from the very beginning.