When a business desires to grow and expand, there are typically three different options:
company-owned expansion, joint venture/co-ownership expansion, and franchising. At the Franchise & Business Law Group, we have focused our practice on understanding the myriad of issues involved in helping our clients understand how best to expand, and what steps must be taken under each of the three options.
When it comes to franchising, our over 35 year and combined nearly 70 years of experience in franchise law and business law make us the leaders in the legal arena for franchisors. Franchising is a highly regulated and structured type of license that comes about when a licensor or franchisor offers the opportunity to purchase the right to use the licensor’s intellectual property and developed systems. Every franchise consists of: 1) the payment of a fee (typically at least $500 in the first 6 months), 2) use of a common trademark, and 3) marketing plan or community of interest. Whether it is called a franchise, a license or other name, if these three elements are present, the arrangement is a franchise.
Due to the complex FTC regulations and various state laws, it is important to consult with a knowledgeable franchise attorney when considering franchising as an option for business expansion. We have helped dozens of businesses determine not only if franchising is the right method for expanding their business, but how to structure the franchise system. The experienced attorneys with the Franchise & Business Law Group stay abreast of the latest legal developments in franchising and our team has worked with clients in franchise industries from restaurants to home décor, and home services to event planning.
Areas of importance when franchising:
- Franchise Disclosure Document (“FDD”)
- Inter-Company License Agreements
- Entity Formation
- Trademark Registration