Franchisees

Franchise and License Legal Partner

Is this your first business venture? 

Or, are you transitioning from the ranks of employee to business owner? 

Maybe you have decided to expand your existing business by becoming a franchisee? 

We recognize that purchasing a franchise is a significant investment of time and money and that franchise legal documents can be intimidating and confusing.  Because a franchise is a long-term commitment of 5-20 years, our goal is to help you make an informed and educated decision.  At Sibert Law we believe that it is important to understand the franchise contract BEFORE you purchase. 

One of the first steps in the franchise process involves reviewing the Franchise Disclosure Document or FDD.  Federal law requires that the Franchisor issue the FDD to any individual or entity considering a franchise opportunity.  An FDD is a lengthy document with many exhibits and attachments.  It  contains, at a minimum, the following information that should be considered by a franchisee in evaluating a franchise purchase: initial investment and start-up costs, royalty payments and recurring fees, advertising and marketing requirements, training and on-going support, dispute resolution procedures, renewal and transfer restrictions and guidelines, site selection and territory boundaries, default and termination provisions, the franchisor’s business history, executive biographies, intellectual property rights, past litigation history, bankruptcy disclosure, financial performance representations, and the franchisee / franchisor’s rights, duties and obligations and other key provisions that will affect the operation of your business.    

We provide the following base services to prospective franchisees:

  • Legal Analysis:  Review the franchise agreement and related disclosure documents and perform a detailed analysis of the relevant terms, restrictions and conditions; 
  • Franchise Review Conference:  After reviewing and analyzing the franchise agreement, we advise prospective franchisees on their respective rights and obligations, and identify potential red flags or pitfalls.  We also take the time to explain all legalease within the agreement and answer any questions that you might have; and,
  • Addendums or Revisions:  If you have agreed upon certain language or provisions outside of that contained within the franchise agreement, we assist in drafting or revising addendums to the franchise agreement

If you would like additional information on Franchise Disclosure Documents, please click on the following links:  http://www.sba.gov/smallbusinessplanner/start/buyafranchise/SERV_INVEST.html,   http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv05.shtm.

If you are experiencing problems with a franchisor, contact us in order to avoid costly and lengthy mediation, arbitration, or litigation.

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