Franchising Your Business

Whether you are a first-time franchisor with a business concept designed to teach others to recreate and operate under your proven system or a franchisor with years of experience, franchising can present a host of business and legal issues.  Our attorneys will work with franchisors to evaluate the risks and benefits of franchising and assist you at every step along the way.

Your On-Demand Business Attorney™ Franchise Services

Our On-Demand Business Attorney™ fixed fee packages will help you structure your franchise and comply with all legal disclosure requirement.  In addition to the services provided in our On-Demand Business Attorney™ services, our franchise attorneys will also provide the following types of services to new franchisors:

  • Draft and regularly update your FDD, in compliance with the FTC-Rule
  • Ensure compliance with the law of each particular registration state
  • Guidance in the type of franchise structure (e.g. single units, area development, sub-franchising, etc.)
  • Guidance in the terms of your franchise agreement (e.g. royalties, fees, confidentiality, non-competition, reporting, audit, default, transfer, renewal, etc.)
  • Draft franchise agreements and related agreements
  • Obtain and ensure trademarks and licenses to vital intellectual property
  • Negotiate and document deals with prospective franchisees
  • Provide ongoing legal support in all business areas (i.e. serving as general counsel in business transactions, employment issues, litigation (and litigation avoidance), etc.)
  • Handling the registration of your franchise offering with state securities commissioners
  • Advising on the type of business entity (Corporation, LLC, Partnership) you should choose

New Franchisors

The FDD

Federal disclosure laws exist to ensure that prospective franchisees are provided essential information about the franchisor, its business, and the contract that will be entered between the franchisor and the franchisee. This information must be provided in a lengthy and detailed document, known as a Franchise Disclosure Document (FDD).

Additional State Law Compliance

Some states impose additional requirements upon franchisors, with most of these states’ franchise laws being patterned after California’s franchise sales laws. However, Georgia is not a registration state. So, in many regards, franchise regulations and disclosure obligations in the State of Georgia are governed by the Federal Franchise Rules.

The Franchise Agreement

Your franchise agreement is the written contract between you and your franchisee. A properly written franchise agreement will set out all of the parties’ rights and obligations. It also will significantly reduce disputes and will protect both you and your franchise from harm that can be caused by bad franchisees.

Trademarks

One of the essential aspects of a franchise is the use of the common brand name. As a prospective franchisor, you will want to obtain trademark rights in your franchises name and logos.

Established Franchisors

Our On-Demand™ attorneys are always prepared and ready to deal with the unique issues that arise for on-going or growing franchises.  Existing franchisors often times grow, bringing about a change in its structure, the way it sells franchises, and the terms of its franchise agreements. A franchisor may decide to sell franchises in new states or, it may need to negotiate deals with vendors or suppliers.

At the same time, the franchisor will need to continue the monitoring of existing franchisees to ensure their compliance with the franchise agreement and the system. The franchisor will also need to oversee or participate in transfers by franchisees as well as address renewal issues as franchise agreements reach the end of their terms.

Of course, the franchisor will also continue with its own internal business operations, the handling of issues related to contracts, corporate and employments matters, real estate, negotiations, and disputes, to name a few.

For the established franchisor, our On-Demand Business Attorney™ packages offer the legal support that your businesses require. Our fixed fee services included with our On-Demand™ packages will provide the following types of services to established franchisors:

  • Regularly review, modify and update your FDD, in compliance with the FTC-Rule
  • Ensure compliance with the law of each particular registration state
  • Review and modify franchise agreements and related agreements
  • Negotiate and contract with approved vendors and suppliers
  • Negotiate and document deals with new prospective franchisees
  • Monitor and deal with existing franchisees
  • Oversee and assist in transfers by existing franchisees
  • Negotiate and complete renewals
  • Provide ongoing legal support in all business areas (i.e. serving as general counsel in business transactions, employment issues, litigation (and litigation avoidance), etc.)