Perhaps your business is based elsewhere, and your business expansion includes Utah, or perhaps you already do business in Utah and plan to add more in-state locations. In either case, consulting a franchise attorney in Utah can help you through some of these decisions. A franchise attorney based in the state is not only versed in the Utah-specific franchise laws and regulations, but they can also help you find your way around the Utah business community.
Ways a Franchise Attorney in Utah Can Help Your Business Expand
You may benefit from consulting a franchise attorney in Utah before you make critical decisions and commit resources to your business expansion. Choosing to expand through franchising can create legal obligations that will factor into your decision.
Commitments to Franchisees
The relationship that you have with your franchisees will depend on your business. For example, a restaurant franchisor might require a high degree of uniformity in everything from recipes to building architecture. A vending machine route operator, on the other hand, might impose very few requirements and restrictions on its franchisees. When you set up a franchising relationship, you take on the burden of ensuring compliance by franchisees.
Simultaneously, you make commitments to franchisees. Again, depending on the relationship, you might commit to:
- Provide training
- Supply products and equipment
- Offer technical and administrative support
- Arrange access to credit
- Assist in location selection
- Guide marketing
Your business model should be developed before or with your franchise agreement. This way, you can avoid promising something in your franchise agreement that you cannot provide under your business model.
Regulatory Compliance
Compliance for franchisors includes regulations under both U.S. and Utah state law. The U.S. Federal Trade Commission (FTC) regulations that govern franchisors cover the disclosures that must be made by franchisors to prospective franchisees. The goal is transparency so that the franchisee can conduct due diligence prior to paying the franchise fee and entering into the franchise agreement.
While the state of Utah does not impose franchise registration like California or Virginia, Utah does require franchise listing. Franchise listing allows the state to distinguish between franchises in compliance with FTC regulations, which are subject to a low level of scrutiny, and business opportunities, which are subject to a higher level of scrutiny.
Intangibles of Having a Franchise Attorney in Utah
A franchise attorney in Utah can provide other assistance beyond structuring your franchise transaction. Attorneys often have networks of colleagues to assist with your other legal issues. Similarly, you can leverage experience gained from other clients to find other professionals like accountants and bankers. Finally, working with franchisors and franchisees can give a franchise attorney in Utah a feel for the business environment and suggest where your franchisees could find a foothold.
Contact a franchise attorney to discuss your business expansion in Utah.