You’re thinking about buying a franchise, and you’ve been told that you should consult with a franchise lawyer before you move forward. But, hiring a lawyer isn’t free (although you can get a free consultation), and you are wondering if it is worth the investment. So, what does a franchise lawyer do?
5 Things a Franchise Lawyer Will Do For You
While there are several ways a franchise lawyer can help if you are thinking about buying a franchise, we’ll just focus on those that are most important. These include:
1. Provide Advice Based on Past Experience
An experienced franchise lawyer will be able to offer insights gained from decades of advising prospective franchisees. This may even include insights about your chosen franchisor and its competitors. From spotting red flags in the franchisor’s documents to knowing when it might be worth considering other franchise opportunities, these insights can prove invaluable.
2. Review the FDD and Franchise Agreement In Detail
The Franchise Disclosure Document (FDD) and franchise agreement are complex legal documents that could easily span well over 100 pages combined. The U.S. Federal Trade Commission (FTC) and state regulators require franchisors to publish FDDs for a reason, and the franchise agreement is the document that will govern your rights and obligations as a franchisee. As a result, it is very important that you hire an experienced franchise lawyer to review these documents in detail.
3. Advise You of Common and Uncommon Risks
All franchise opportunities carry risks, and many of these risks are common throughout the franchising industry. But, this does not mean that you can afford to simply ignore these risks when buying a franchise. While some people may be comfortable taking these risks, you may not.
Most franchise opportunities present their own unique risks as well. A franchise lawyer can advise you of all of these risks so you know what will be at stake if you move forward.
4. Negotiate the Franchise Agreement
If any of the terms of your franchise agreement present unreasonable risks, you will want to try to negotiate these terms with the franchisor. A franchise lawyer can explain which terms are worth negotiating and what modifications you should request, and your lawyer can negotiate on your behalf if desired.
5. Help You Make Informed Decisions
Finally, and perhaps most importantly, a franchise lawyer can help you make informed decisions. Buying a franchise is a long-term investment. You need to know what you are getting yourself into. A franchise lawyer won’t tell you what to do (or what not to do), but rather give you the information you need to feel confident in your own decision-making.
Schedule a Free Consultation with Franchise Lawyer Jeffrey M. Goldstein
If you would like to know more about what a franchise lawyer can do to help you, we encourage you to schedule a free consultation at the Goldstein Law Firm. Call 202-293-3947 or send us a message online to start the process today.