Evaluation of Franchise Documents

Legal Evaluation of Your Franchise Documents

Talk to a Franchise Attorney Before Buying a Franchise

How do you know if buying a particular franchise is a good business investment?

Nancy, I can't thank you enough for your input, legal advice and council during the review and negotiations of our franchise agreement. As you know, I initially wavered about using a lawyer because I felt comfortable negotiating the contract on my own. I'm glad I made the decision to use you. Without question, your involvement was one of the best decisions that we have made as we've entered this new world of franchise business ownership and well worth the money. Your understanding of franchise law from both the franchisee and franchisor perspective gave us the comfort level we needed throughout the process. You were there for us every step of the way. We look forward to a long lasting relationship with you as our business attorney.
— Wendy B., Cherry Hill, NJ

The answer to that question is most likely buried in the details of the franchise documents you received from the franchisor. A skilled franchise attorney can review and explain these franchise documents so you can confidently move forward with your franchise purchase, or you can choose to pursue other opportunities.

At the Law Offices of Nancy L. Lanard, P.C., we have reviewed hundreds of franchise documents for clients nationwide who are thinking of buying a franchise. Let us put our skills and experience to work for you. Contact a franchise lawyer at our Pennsylvania law firm today.

Required Documentation

A potential franchisee will be provided with several legal documents that should be reviewed by an experienced franchise attorney prior to signing any agreement to buy a franchise, such as:

Franchise Disclosure Document (FDD) consisting of 23 required items and other important information
Franchise agreement
Promissory notes
Security agreement
Software licensing agreement

A Meticulous Review

Our franchise lawyers will review the FDD to gain an understanding of the franchise and the franchisor's background, litigation history, bankruptcy filings, and other important concerns.

We check the status of trademark(s) to make sure they are federally registered, since the trademark is the cornerstone of your investment in the franchise.

We thoroughly review the franchise agreement and make note of obligations (financial, reporting, advertising, and others) that the franchisee will have to the franchisor, and the obligations that the franchisor has to the franchisee.

When franchise agreements are negotiable, we may suggest revisions to make them more favorable to you. Modifications may include:

Providing a standard of reasonableness when franchisor approval is required
Providing adequate notice prior to the franchisor's exercise of its remedies upon default
Insuring that any required indemnification by the franchisee to the franchisor is limited
Requiring that the franchisor provide indemnification to the franchisee for any trademark infringement actions or claims

The Value of a Skilled Franchise Attorney

A skilled franchise attorney can help you in any number of ways before, during and after your franchise purchase. We advise clients on forming the proper legal entity for their franchised business. We review and negotiate commercial leases for your business location. We develop employment policies, assist with business contracts and business transactions, and eventually assist you with the sale of your business.

You are undertaking a large financial obligation. Put someone on your team who will protect your interests. Contact an experienced franchise lawyer Us at our Philadelphia law firm today.

To learn more about franchising, read Nancy Lanard's articles on Fend Off Franchising Fiascos [pdf] and On the Road to a Franchise.