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.
The FDD may be the first document you encounter, but it won't be the last. The franchisor's attorneys will draw up a contract agreement that will contain the specifics of your business partnership. Before you sign this legal document, you should clearly understand the terms. It will probably include items such as audit rights, insurance, guaranties, time dedication, transfer restrictions, and dispute resolution.
Unless you have been involved in other franchises, you probably won't know whether your contract is comparable to others or has unusual conditions included. A good attorney will be able to look the documents over and point out anything outside the normal conditions. Any questions you have can be answered before you actually sign the documents and commit yourself to a formal partnership.
Lawyers for the franchisor may indicate that the contract they offer you is non-negotiable. This is standard operating procedure. Your attorney will probably advise you that certain items like royalty structures and initial fees are not negotiable, but other items can be amended. You can often negotiate transfer of ownership, protection of territory, audit expenses, indemnification, and non-compete clauses.
In addition of the actual franchise documents and agreements, there are other business considerations for which a good attorney can be invaluable. These include what type of business entity you are going to create such as a corporation, a limited liability or limited partnership. You might need assistance negotiating leases, hiring key personnel, and establishing ownership agreements.
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.
The FDD may be the first document you encounter, but it won't be the last. The franchisor's attorneys will draw up a contract agreement that will contain the specifics of your business partnership. Before you sign this legal document, you should clearly understand the terms. It will probably include items such as audit rights, insurance, guaranties, time dedication, transfer restrictions, and dispute resolution.
Unless you have been involved in other franchises, you probably won't know whether your contract is comparable to others or has unusual conditions included. A good attorney will be able to look the documents over and point out anything outside the normal conditions. Any questions you have can be answered before you actually sign the documents and commit yourself to a formal partnership.
Lawyers for the franchisor may indicate that the contract they offer you is non-negotiable. This is standard operating procedure. Your attorney will probably advise you that certain items like royalty structures and initial fees are not negotiable, but other items can be amended. You can often negotiate transfer of ownership, protection of territory, audit expenses, indemnification, and non-compete clauses.
In addition of the actual franchise documents and agreements, there are other business considerations for which a good attorney can be invaluable. These include what type of business entity you are going to create such as a corporation, a limited liability or limited partnership. You might need assistance negotiating leases, hiring key personnel, and establishing ownership agreements.
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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