Franchise Law

Franchise Law focuses on the laws and regulations affecting franchises, as well as the business and legal relationships between franchisors and franchisees. The firm represents both franchisors in the development and continuing operations of the franchise and franchisees in assessing whether to purchase a particular franchise and, if purchased, the franchisee’s legal needs.

Franchisors:

A franchise is a business format that is developed by one party, the franchisor, who grants, for the payment of fees and/or royalties, the rights to others, the franchisee, to engage in business under a common marketing and operating plan, the franchise system, including a license of the franchisor’s trademark, service mark, trade name, logo, or other commercial symbol, with the franchisor having substantial control over the franchisee and/or rendering substantial assistance to the franchisee. Because of regulatory requirements and oversight, developing and operating a franchise can be an overwhelming and expensive process. As a result, prospective franchisors often seek alternatives to an actual franchise. Often times, an alternative structure will be deemed to be an inadvertent franchise subject to the full panoply of laws and regulations. Franchise alternatives may be appropriate if the business format can be properly tailored.

Services:

• Evaluating a business format to determine the best structure for growth
• Developing the legal documents required to be presented to prospective franchisees, including the Uniform Franchise Offering Circular and Franchise Agreement
• Providing input for the structure and content of supporting materials such as training and operations manuals
• Assisting franchisors in complying with the laws of states in which they seek to sell franchises
• Maintaining all legal documents in up-to-date status
• Reviewing of franchise manuals and advertising
• Performing legal audits of franchisors’ compliance with franchise laws
• Registering of franchises in states requiring registration
  

Franchisees:

• Representing prospective franchisees in reviewing and assessing franchise documents to aid in the decision whether to buy a franchise
• Recommending alternative language and negotiating changes to franchise agreements
• Forming the business entity under which the franchisee operates
• Continuing representation throughout the franchise relationship

Non-franchise Expansion Alternatives:

• Company owned expansion
• Joint ventures and partnerships
• Business opportunities
• Distributorship and dealerships
• Independent sales representatives
• Licensing