Like other franchise opportunities, home delivery franchises present both unique opportunities and unique risks that prospective franchisees must carefully consider before taking the plunge and signing a franchise agreement. While pizza chains have long dominated the home delivery market in franchising, many full-service restaurants are now offering delivery options, and other types of quick-service chains are turning to the take-out-or-delivery model as well.

Services for Home Delivery Franchisees

If you are considering a home delivery franchise opportunity, at the Goldstein Law Group, we can help you understand the franchisor’s Franchise Disclosure Document (FDD) and franchise agreement, negotiate the franchise agreement on your behalf and advise you of other steps you should be taking to protect your rights and limit your exposure. We offer three tiered flat-fee franchise review options for prospective franchisees, and for existing franchisees we offer:

With more than 30 years’ experience representing franchisees and dealers, franchise attorney Jeffrey M. Goldstein relies on his extensive background in the franchise industry to provide straight-forward advice and strategic representation for negotiations, arbitration and litigation. To speak with Jeff Goldstein about your home delivery franchise, contact the Goldstein Law Firm for a free consultation today.

Legal Considerations with Home Delivery Franchises

While home delivery franchisees face the same risks as franchisees in other brick-and-mortar sectors with regard to their initial investment and the strong protections franchisors afford themselves in their franchise agreements, the delivery aspect also presents some unique risks that require careful consideration. Whether advising prospective franchisees on new opportunities or counseling existing franchisees when they run into issues in their businesses, some of the most common risks we deal with include:

  • Termination Rights – Do you know what types of issues allow your franchisor to terminate your franchise? Can you get out if your franchisor fails to meet its obligations?
  • Renewal and Transfer Restrictions – What restrictions apply to your “right” to renew? Can your franchisor block a transfer by choosing not to approve your buyer or exercising a right of first refusal?
  • Mandatory Suppliers and Products – Are you required to use suppliers who offer inferior products or non-competitive pricing? Must you stock and advertise all approved products, even if they are not profitable for your business?
  • Non-Competition Covenants – When your franchise ends, will you be able to operate an independent food delivery business? Will you be able to remain in the food industry at all?
  • Liquidated Damages – If the franchisor terminates your franchise, will you be required to continue paying royalties post-termination? Could this put you at risk for bankruptcy?
  • Delivery Driver Background Checks – How do you screen your delivery drivers? What are (and aren’t) you allowed to consider when making employment decisions?
  • Liability in Collisions Involving Delivery Drivers – How can you protect your assets if your franchise gets sued over an accident involving one of your drivers?

This is just a sampling of the issues new and existing home delivery franchise owners face on a regular basis.

Contact the Goldstein Law Firm about Your Home Delivery Franchise

If you are considering a home delivery franchise opportunity or need legal representation for a dispute involving your franchised business, contact national franchise lawyer Jeff Goldstein. To schedule a free, confidential consultation, call (202) 293-3947 or submit our online contact form today.

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Goldstein Law Firm, PLLC

1629 K St. NW, Suite 300,
Washington, DC 20006

Phone: 202-293-3947
Fax: 202-315-2514

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