Franchisees

For many franchisees, the franchise world is new and uncharted territory with unfamiliar rules, complex regulations, and a binding long-term agreement that affects their financial future. Discovering unpleasant surprises after it is too late can turn an exciting business venture into a dismal hardship. While the booby traps inherent in franchise agreements are well known among franchise lawyers, these hidden snares are usually not obvious to business people who are new to the franchise relationship.

Read our FAQs about franchising

A competent franchise attorney fully explains what legal documents are necessary and what they mean as well as advising what to negotiate before signing anything. At Protonentis & Remley, our attorneys also clearly explain legal issues that could impact a franchisee’s business on a long term basis and advise our franchisee clients accordingly.

Franchisors are required by law to present the franchisee with a disclosure document regarding their franchise opportunity called a Franchise Disclosure Document or FDD. It is a lengthy document describing aspects of their franchise system that includes a business history, executive biographies, initial investment and start-up costs, royalty payments and recurring fees, intellectual property rights, past litigation, bankruptcy disclosure, financial condition, training and on-going support, and other critical information needed to make an informed business decision.

Franchisors are also required to provide their franchisees the final franchise agreement and all other related agreements in a form for execution at least 5 business days before signing them or receiving any payment from franchisees. This requirement provides franchisees the opportunity to review all the final terms before signing and agreeing to be legally bound to the franchise system.

Read about common mistakes in franchising

To simplify franchise acquisition and provide on-going legal support, our attorneys offer the following legal services to franchisees:

Written Legal Analysis of the FDD, franchise agreement and other legal documents involved with the franchise purchase. Our analysis is comprehensive and includes an opinion letter that explains potential minefields, assists clients in making informed decisions, and can be used as a reference tool for future communications and negotiations with the franchisor.
Personal Meeting to review key disclosure items of the FDD and the terms of the franchise agreement that control their franchised business relationship.
Negotiation Advice to explain what may be negotiable and what may be non-negotiable. We provide business arguments, test negotiation strategies and cultivate an awareness of terms that would be fair and equitable to both the franchisee and the franchisor.
Help in Closing the Deal includes drafting your negotiated terms into a final form as an addendum to the franchise agreement or if the franchisor provides revised contract terms, reviewing the amended agreement and ensuring revised terms are consistent with negotiations and the franchisee's understanding of its long-term business relationship.
On-going Legal Support to advise franchisee clients if issues arise regarding the franchisor or the franchised business, and to resolve matters before they become disputes involving legal proceedings.

Fees in General We provide our Written Legal Analysis and conduct Personal Meetings with our franchisee clients on a fixed fee basis. All other fees are billed on an hourly basis.

Hiring a competent franchise attorney is a worthwhile measure to take for avoiding costly mistakes and for making an informed business decision before entering into a long-term franchise commitment. Getting out of a bad franchise relationship is far more costly than making sure you get into a good one.

Read about alternative dispute resolution for franchisor/franchisee relationships