A lot of people are happy to work for others throughout their lives. There are others who prefer to go into business for themselves by purchasing a franchise that gives them the opportunity to become an independent business owner offering a product or service with instant name recognition and an established reputation. If this is something that interests you, you need someone experienced in the franchise and dealership law Illinois firms handle for franchisees.
The Federal Trade Commission requires all franchisors to provide potential franchisees with a copy of their Franchise Disclosure Document or FDD, which outlines the terms and conditions involved in this business partnership. These documents tend to be complicated, lengthy, and full of legal language unfamiliar to most. You will need a good lawyer to go over this paperwork carefully, explain it to you thoroughly, and point out any areas of concern.
As the process continues, you will be expected to sign a contract agreement between the franchisor and yourself that will be drawn up by their legal staff. This agreement outlines the specific terms and conditions of your personal agreement with regard to franchising. Included in the agreement will probably be items like insurance, transfer restrictions, dispute resolution, and audit rights.
Unless you are already familiar with franchises, you probably won't know whether the documents you are expected to sign are standard or not. This is especially true if you don't have anything to compare them to. A good attorney will be able to go over the documents and point out any items that should cause you concern.
You may believe the contract you receive from the franchisor is non-negotiable. They might even tell you that is the case. You may not be able to amend initial fees or the royalty structure, but there could be items in the contract that can be reworked to your satisfaction. Some of the areas of compromise might include protection of territory, audit expenses, transfer of ownership, non-compete clauses, and indemnification.
There is more to going into business than negotiating with the franchisor. You may need legal advice on whether to start an s-corporation, limited partnership, or limited liability company. You might need someone to negotiate lease agreements, establish ownership agreements, and interview key personnel.
Not all lawyers have expertise in this field, and before you hire someone, you need to do some research and ask some questions. You should feel free to ask this professional how many franchises he or she has worked on and how many disclosure documents they have actually read. If the lawyer is someone who gives lectures to other professionals or has published articles in this field of the law, you will want to know that.
Franchises can be great opportunities for the right people. If you are considering trying it, you need to contact an experienced professional to help you navigate the process. It can make all the difference in the long run.
The Federal Trade Commission requires all franchisors to provide potential franchisees with a copy of their Franchise Disclosure Document or FDD, which outlines the terms and conditions involved in this business partnership. These documents tend to be complicated, lengthy, and full of legal language unfamiliar to most. You will need a good lawyer to go over this paperwork carefully, explain it to you thoroughly, and point out any areas of concern.
As the process continues, you will be expected to sign a contract agreement between the franchisor and yourself that will be drawn up by their legal staff. This agreement outlines the specific terms and conditions of your personal agreement with regard to franchising. Included in the agreement will probably be items like insurance, transfer restrictions, dispute resolution, and audit rights.
Unless you are already familiar with franchises, you probably won't know whether the documents you are expected to sign are standard or not. This is especially true if you don't have anything to compare them to. A good attorney will be able to go over the documents and point out any items that should cause you concern.
You may believe the contract you receive from the franchisor is non-negotiable. They might even tell you that is the case. You may not be able to amend initial fees or the royalty structure, but there could be items in the contract that can be reworked to your satisfaction. Some of the areas of compromise might include protection of territory, audit expenses, transfer of ownership, non-compete clauses, and indemnification.
There is more to going into business than negotiating with the franchisor. You may need legal advice on whether to start an s-corporation, limited partnership, or limited liability company. You might need someone to negotiate lease agreements, establish ownership agreements, and interview key personnel.
Not all lawyers have expertise in this field, and before you hire someone, you need to do some research and ask some questions. You should feel free to ask this professional how many franchises he or she has worked on and how many disclosure documents they have actually read. If the lawyer is someone who gives lectures to other professionals or has published articles in this field of the law, you will want to know that.
Franchises can be great opportunities for the right people. If you are considering trying it, you need to contact an experienced professional to help you navigate the process. It can make all the difference in the long run.
About the Author:
Get an overview of important things to consider when selecting a franchise and dealership law Illinois practitioner and more information about an experienced attorney at http://www.cdcaruso.com right now.
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