Do I Need to Hire a Franchise Lawyer If I’m Buying a Franchise?

If you’re prepared to purchase a franchise, you’ve probably already done your homework about the industry and business you’re looking to become a part of – but there’s one thing you can’t afford to forget.

Attempting to buy a franchise without professional legal consultation is an extremely risky proposition. You may expose yourself to liabilities you hadn’t planned for.

A franchise lawyer can help protect your business investment by ensuring you’re in full legal compliance, facilitating the transaction, and alerting you to potential financial dangers.

What Will a Franchise Lawyer Do for You?

Instead of thinking of franchise lawyers as just another expense, it may be more appropriate to think of them as a worthwhile investment. Consider some of the ways they can protect and guide you during the purchasing process.

Reviewing and Verifying Key Documents

A capable franchise lawyer will be able to thoroughly examine the Franchise Disclosure Document (FDD), which you are legally required to receive as a prospective franchise owner. They’ll be able to identify potential inaccuracies, as well as ensure you fully understand your obligations as a franchise owner. Misinterpreting even a single aspect of an FDD could ultimately cost you your entire business investment. A franchise lawyer will prevent that from ever happening.

Identifying Fraud and Scams

Franchise lawyers are trained to identify potential fraud, scams, and illegitimate businesses. They can alert you to red flags during the transaction process, as well as during the review of your FDD. Without proper legal guidance, you could be more vulnerable to being taken advantage of by cunning scammers using deceptive contracts and aggressive sales tactics.

Negotiating a Better Contract

A skilled franchise lawyer will use their expertise to determine if there is the potential for you to get better terms on royalty payment structures, non-compete clauses, right to close, and other areas. Even if a contract is defined as “non-negotiable” by the franchisor, often an experienced franchise lawyer may be able to find some flexibility in your favor.

Negotiating a more favorable contract could mean more cash in your pocket when you get your franchise up and running. Even a small improvement in negotiation terms has the potential to have a dramatic impact on your profitability over the life of your business.

Protect Your Investment

A franchise lawyer has one primary job, to protect you during your franchise purchase. Their priority is ensuring your transaction goes as smoothly as possible and that you’re fully protected from liability due to non-compliance.

After everything else, you’re prepared to invest in your business. You owe it to yourself to have an experienced professional at your side to make sure your business is successful.

Take the next step toward securing your investment by contacting Franchise & Business Law Group Today.