Do you really need a business law or franchise attorney to launch your new venture?
New franchisors often assume any lawyer will have the expertise to navigate the world of franchising. However, working with a franchise attorney is the safest way to pursue this legally complex method of business expansion.
Building and protecting a franchising system is a complicated endeavor. Throughout the process, franchisors need the assistance of a franchise law expert. Why?
No. 1: A Franchise Attorney Understands Franchise Law
More than 1 million attorneys are licensed to practice law in the United States, but few specialize in franchising and business law.
The FTC regulations and state laws that govern franchisors are complex, and many of the rules are unique to the industry. The variations in each state’s set of regulations and the intricacies of international law add to the difficulty in structuring a solid, viable franchising system.
In order to ensure the protection of the franchise business, certain guidelines must be followed by both franchisors and franchisees. Only a franchise attorney has the knowledge and experience to make sure your business is in compliance with state, federal and international laws.
No. 2: Franchise Attorneys Provide Expert Assistance with Franchising Documents
One of the biggest potential risks for new franchisors is that of a lawsuit from a franchisee.
The franchise disclosure document (FDD) and franchise agreement — as well as all other franchising paperwork — must be crafted carefully to safeguard franchisors against future legal claims. Ironclad documentation and agreements are essential to maintaining a strong business system.
A franchise attorney understands how to create bulletproof documents that clearly define the exact terms of the relationships between franchisors and franchisees. When a franchising expert handles all the legal documentation, the risk of future litigation is minimized.
No. 3: A Franchise Attorney Can Help New Franchisors if Problems Arise
But working with an attorney experienced in franchise law doesn’t eliminate the possibility of legal troubles. Disputes with vendors or government regulators can arise, for example. And legal problems may develop between franchisors and franchisees.
When legal issues threaten the stability of a business, franchisors need an expert to step in and help resolve the problems. The attorney who developed the franchising documents can be a lifesaver. And a lawyer who knows the ins and outs of the business can provide invaluable assistance for maneuvering through franchising complications.
With decades of experience in franchising, the professionals at The Franchise & Business Law Group specialize in helping businesses grow and expand. As champions for the rights of franchisors, our legal team can help protect the future of your business. To discuss our services, contact our Salt Lake City, Utah, office to schedule a consultation with one of our franchise attorneys.