Franchises can be a powerful and profitable business model for both franchisors and franchisees. However, it is also one of the more legally complicated types of businesses. Every franchise arrangement involves not only the standard issues that come up with any business, such as business entity formation, but also a whole set of concerns unique to franchise law.
You need a lawyer with franchise-specific knowledge and experience to help you conduct due diligence, protect your assets, negotiate complex contracts, and ensure compliance with state and federal franchise laws. A simple oversight at the beginning of the franchise process can have catastrophic effects down the road.
Even after a franchise is up and running, a franchise attorney is still needed to resolve issues that arise as franchisees and franchisors grow. Even when the relationship between the franchisor and the franchisee is amicable, each side needs help making sure their legal interests are fully protected.
If the relationship between the franchisor and the franchisee deteriorates, you will need a lawyer to help ensure continued compliance with franchise law and the franchise agreement. In the most difficult cases, you will need a franchise lawyer to represent you in litigation. Franchise litigation is unlike standard contract or business dispute litigation—it is much more complicated.