Franchisors

Franchising provides a franchisor with the means to accelerate business expansion, establish national brand identity and reach a vast consumer market more quickly and efficiently. The proceeds from franchise sales, fees and royalties enable a franchisor to expand and support its business with less capital investment than more traditional business structures, while still retaining control over the business format and the products and services provided. Successful franchise systems rely upon quality standards and the uniformity of their trademarked products and services to ensure consistent consumer satisfaction.

Read our FAQs on franchising

While franchising may not be the right answer for every business, our attorneys routinely assist clients in determining whether a franchise business model will meet their business objectives. Read more about alternatives to franchising

We offer a full complement of legal services that start-up and developing franchise companies need to meet regulatory compliance and sustain orderly growth.

Franchisor Legal Services

• Structuring a Franchise
  Our attorneys evaluate the current retail business or start-up business concept and examine structuring possibilities to help maximize growth potential and achieve business objectives in terms of brand identity, product distribution and reaching the consumer market. Our legal advice is aimed toward transforming a current business or start-up into a successful national franchise system. Read more about common mistakes in franchising
• Preliminary Evaluation and Questionnaire
  A comprehensive questionnaire consisting of 22 categories with business related questions facilitates our preliminary evaluation and helps us define the franchisor’s needs as well as the strengths and weaknesses of its franchise system. The franchisor questionnaire also provides us the detailed information we need for drafting the disclosure document and franchise agreements. Together with our clients, we outline the best course of action to launch compliant franchise sales operations.
• Franchise Offering Circulars /Disclosure
  Our attorneys prepare a disclosure document (Franchise Disclosure Document or FDD) in plain English to comply with all the federal and state disclosure requirements. According to Federal Trade Commission statistics, approximately 70% of national franchisors rely on their FDD as a primary sales tool. Our attorneys structure highly-personalized FDD documents that are not only designed to make a positive first impression, but also to help our clients get bottom-line results. We understand our clients’ needs for legal documents that help them make deals rather than break deals, and we fulfill their needs.
  
  The FDD describes detailed aspects of the franchisor’s business, such as predecessors and affiliates, a history of litigation and bankruptcy, executive biographies, initial and ongoing fees, intellectual properties, capital investment requirements, and restrictions on sources of products and services, together with other mandatory disclosures. The FDD and franchise agreement are written in a manner to protect the franchisor’s business interests and intellectual property rights for the benefit of its franchise system as a whole.
• Required Documentation
  In addition to the FDD, our attorneys provide franchisors with other required legal documents including franchise agreements, personal guaranties, nondisclosure and non-competition agreements and, if appropriate, area development agreements and master licensing agreements to subfranchise their business.
• State Registrations
  A number of states require business opportunity and franchise registration before a franchisor may sell franchises in their states. Our attorneys prepare and submit necessary documentation for initial registrations as well as annual registration renewals and post-effective amendments throughout the fifty states.
• Modifications to Business Operations
  To meet regulatory requirements, we update FDD documents each fiscal year with the franchisor's current audited financial statements and information that reflect changes in franchise operations and methods of doing business as the franchise system grows. We also integrate FDD information with content in the franchisor's business operations manual and franchise agreements to permit maximum flexibility for future programs or modifications in business operations. Franchise systems evolve over time, and flexibility is essential to protect the integrity of the system as a whole and to avoid the need for re-negotiating individual franchise agreements as the system matures.
• Ongoing Support and Guidance
  As part of the on-going client relationship, our attorneys maintain accurate records of state registrations, modified documents, amendments, and annual reports as required by the various franchise investment laws and also serve as the franchisor's legal representative to state regulatory agencies. Read more about franchise regulations
• Legal Training
  After the FDD and other documentation are finalized, we offer a legal training program for key management personnel and the franchise sales staff. Each staff member in the program is provided with a set of confidential reference materials to study along with the standard FDD, followed by a round-table session to re-enforce understanding, raise questions, provide answers, solve hypothetical problem situations and remove uncertainty regarding what is legal and illegal franchise marketing activity that could result in franchisor liability. Staff may keep the training materials for future reference. We also help management develop standardized procedures, reporting formats, and form letters which further define franchisor policies in handling franchisee delinquencies, unauthorized activities, disputes and contract violations.
• Advertising Compliance
  Franchisors are required by state and federal law to comply with advertising regulations governing the sale of a franchise. They are also required to comply with laws governing the advertising content of all products and services offered through the franchise system. In addition to restricting text that an advertisement may contain, some states require registration of the franchise offering and all franchise advertising materials prior to their release. Our firm works with the franchisor's advertising staff to ensure legal compliance before advertising materials are printed.
• Franchise Sales
  To be effective, sales representatives need a strong working knowledge of the franchisor's operating system, training programs, and the FDD as well as the operative franchise agreements. Sales staff also must know how to make authorized representations within the parameters of the federal and state franchise laws. Our attorneys assist sales personnel in developing their sales skills and work with them to provide effective solutions to unusual legal situations that may arise from time to time.
• General Counsel and Fixed Fee Arrangements
  Because our attorneys have also had the opportunity to serve major franchisors and corporations in a general counsel capacity, we can offer a range of agreed upon services for a fixed fee arrangement giving franchisors the freedom and flexibility to expand our relationship as a strategic partner in expanding and protecting their franchise systems.