The Franchise King®

The Top 10 Reasons To Pay Legal Fees To A Franchise Attorney

image of franchisees paying legal fees and sitting down with a franchise attorney

Franchise business ownership is an exciting endeavor that offers you the opportunity to leverage a proven business model. But there will be legal fees involved (if you do it right).

(This post may contain affiliate links. Please read my disclosure policy).

That’s because some aspects of franchising can be complex. Especially the FDD and the Franchise Agreement (contract).

That’s why you need guidance from an experienced franchise attorney. Someone who knows the ins and outs of each and every document you’ll receive from franchise headquarters.

In this blog post, we’ll delve into the top 10 reasons why you need to hire a franchise attorney…why paying legal fees before you buy is crucial before you sign anything.

Top 10 Reasons To Pay A Franchise Attorney Legal Fees Before You Sign A Thing

  1. Expertise in Franchise Law: Franchise law is a super-specialized field that involves a unique set of regulations and considerations that are constantly changing. A seasoned franchise lawyer possesses the in-depth knowledge needed to guide you through the complexities of franchise agreements, disclosure documents, and compliance issues.
  2. Customization of Franchise Agreements: Every franchisee-franchisor relationship is important. A skilled franchise attorney can sometimes make some needed changes to your franchise agreement. Notice I said “sometimes.”
  3. Due Diligence Support: Before committing to a franchise, it’s crucial to conduct thorough due diligence. After you do your own research, franchise attorney can assist you in reviewing the franchisor’s history, financials, and current legal standing. These are the things that can help you make an informed decision.
  4. Navigating Regulatory Compliance: Compliance with state and federal regulations is paramount in the franchising world. A franchise attorney can keep you abreast of ever-changing legal requirements, reducing the risk of legal issues that could jeopardize your local business.
  5. Resolving Disputes: Franchise relationships can sometimes run into snags. An experienced franchise attorney can help you mediate disputes, negotiate resolutions, and, if necessary, represent you in legal proceedings against your franchisor. While rare, major disputes can happen you and your franchisor. And it’s something you never want to tackle alone.

    Get Help Analyzing The Franchise Disclosure Document

  7. Understanding Franchise Disclosure Documents (FDDs): The Franchise Disclosure Document is a critical component of the franchising process. A franchise attorney will help you decipher the complexities of the FDD, ensuring you understand the terms and obligations that are outlined in the documents.
  8. Financial Protection: Franchise agreements often involve substantial financial commitments. A franchise attorney can help scrutinize some of the financial aspects of the agreement. That can go a long way to avoiding potential pitfalls and helping you safeguard your investment.
  9. Real Estate Expertise: For many franchises, location is key. A franchise attorney that has real estate expertise can guide you through lease negotiations-which are seemingly always complicated and intense. Plus a lawyer familiar with commercial real estate can help you with things like local zoning regulations and more. That alone is a powerful reason to pay their legal fees.
  10. Business Entity Setup And Guidance: Protecting your personal assets is something you need to keep top of mind. The best way to do that is to set up an entity. But it needs to be the right one for you. Your lawyer can look over your unique situation and suggest the best way to set things up. Heck, in my own case, my franchise lawyer advised me on the proper business entity for me to have in place for maximum protection. For me, it was a S-Corp
  11. Long-Term Strategic Counsel: Beyond the initial stages, the “Hire a franchise attorney before you buy” part, a franchise lawyer can provide ongoing strategic counsel. From expansions and acquisitions to changes in local and national business legislation, having a legal expert by your side helps ensure you’re well-prepared for the dynamic landscape of franchising. After all, you don’t want any legal surprises. And isn’t that the real reason you pay legal fees to a lawyer?

    An Important New Reason To Pay A Franchise Lawyer

  13. Here’s a new reason to pay a legal fee to a franchising lawyer, and it’s something that’s becoming more prevalent in franchising today: Equity Firms Buying Franchisors Out. The potential of this happening to your franchisor is something you always need to have in the back of your mind. For example, if an Equity firm buys out your franchisor, where does that leave you? The fact is, things change when the focus of the company has more to do with their Return On Investment (ROI) than the science of keeping franchisees happy and productive. I don’t mean to freak you out, but I want you to be aware of something you won’t be able to control. And that’s another reason to have a franchise attorney by your side-as needed.

Should You Pay A Franchise Lawyer?

Of course you should.

Heck, as far as I’m concerned it’s not an option.

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From navigating legal complexities in franchising, to protecting your investment and your assets, the expertise an experienced franchising attorney brings to the table is an invaluable asset for any franchisee.

A Final Thought

As you embark on your journey towards owning a franchise business, you need to consider a franchise attorney not just as a legal advisor, but as a strategic partner invested in your long-term prosperity.


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franchise article written by joel libava
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joel libava

I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes.
For 23 years, I’ve been showing people how to make smart, informed decisions on franchises to buy, and I can help you, too!
P.S. I'm not a franchise consultant/broker.

Joel is Highly Principled
There are many people in the franchise business who claim to to be experts in the field. Unfortunately many of them lack both knowledge and integrity. Joel, however, is without question one of the most qualified and principled people I know, in or out of his industry."
- Greg Reynolds, Retired Outplacement Counselor
"Many receive advice, only the wise profit from it."
- Harper Lee

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