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Owning a business as a franchisee can be an incredible opportunity and experience. Using tried and true methods, you can reduce your upfront costs and join an established franchise. To make sure that your assets are protected and your business operates successfully, you should work with our business lawyer in Dallas from the outset.
At Luther Lanard, PC, we can help you take the right steps for your business so you can focus on operations with the peace of mind that you are protected from liability. We provide services that help you get started, protect the health of your business, and help you navigate various situations that may arise. We provide you with experienced and knowledgeable service to provide maximum legal protection. Our team takes the time to get to know you and your business and provide custom solutions.
The Purpose of Business Law and the Importance of Hiring a Lawyer in the Metroplex
Business law governs the operations, transactions, and other practices companies use to carry out their business activities. State and federal laws outline what a business can and cannot do, and what legal steps can be taken when issues arise. Business attorneys in Dallas, TX can help and guide you throughout the various life stages of your business and Texas’s business climate.
Whether you are just starting out and buying your first franchise or you are preparing to make your exit, Luther Lanard, PC provides counsel and direction that matches your specific needs. We also have a deep understanding of Texas’s business climate, so we can serve you better. Our team can help you take proactive steps or respond to legal issues, and this page outlines some of the services you can expect from our team. You are our top priority, and we are here to protect your interests.
Business Formation is a Priority When Purchasing a Franchise in Dallas-Fort Worth
Choosing your business entity and settling on a location are two of the biggest decisions you’ll make when you are starting out in business. Your business entity impacts your operations and tax obligations, and your location can impact your business success. You should weigh these factors carefully and talk with a lawyer who can provide insight so you can choose the entity that is right for you and reduce your risk. Some common business entities you can choose from when buying a franchise include:
- Limited Liability Company: Also known as an LLC, this type of business entity separates the business from the individual so that an individual’s personal assets are protected from liability.
- C-Corporation: Businesses classified as C-corporations are their own entities and answer to shareholders. Corporations are also taxed separately and differently, but may also benefit from special deductions.
- S-Corporation: This type of corporation allows businesses to pass income and losses through shareholders, which reduces the business’s tax burden.
With the help of your business attorney, they will help you determine which option most effectively protects your assets and eases your liability and tax burden. They, along with an experienced accountant, can also walk you through the tax implications you will face.
Additionally, a lawyer can also help you choose your business location. Given the size of the Metroplex, different areas throughout the city will have different advantages and disadvantages that you will need to consider. Your location can impact your income, level of competition, marketing efforts, and more.
Have an Experienced Lawyer Review and Negotiate Your Lease Before Signing
Many franchises are brick-and-mortar operations and require you to secure a physical space. Once you have chosen to purchase a franchise, you will need to turn your attention to finding a commercial space to set up shop. This means that you will need to sign a lease for the space you choose, and you should make sure that you are protected before you ever put your signature on the document. This starts with hiring a lawyer who can help you with lease review and negotiation.
A business lawyer who knows the Dallas area can review the proposed lease to make sure that it protects your interests and mitigates undue liability. They will negotiate with the landlord to make sure that the terms of the agreement are fair and do not unfairly favor one party considerably more than the other. Your lawyer will make sure all relevant considerations are made and included in the agreement. They will also walk you through the lease so you understand your rights and obligations before you sign.
Compliance Reviews Should be Conducted Regularly to Protect Your Business
As a business owner, you will need to follow all local, state, and federal laws and regulations regarding business, employment, tax obligations, and so forth. This can be a lot to keep up with, especially as guidance on business matters changes and evolves. As such, it is important to conduct regular compliance reviews to see if your business is meeting all the necessary requirements to operate.
A lawyer can help you by periodically reviewing your structures, policies, procedures, and more to assess the health of your business. They will also identify areas in your business where you may not be compliant or may be vulnerable to risk. Business lawyers in Dallas, TX will then make recommendations and work with you to create an action plan for how to improve compliance and reduce your liability. These steps can help ensure that your business is not threatened by non-compliance.
Legal Representation Can Protect Franchisees from Deceptive Trade Practices
Texas has laws in place that prohibit businesses from engaging in practices that deceive consumers or treat them unfairly. The Texas Deceptive Trade Practices Act (DTPA) outlines what practices fall into these categories, and what consumers can do to protect themselves and recover their losses. Under this law, franchisees are also protected if they are exposed to misrepresentations, omissions, or waivers from franchisors.
Franchisees who have discovered that a franchisor has engaged in deceptive practices can take legal action against them and hold them accountable for their actions. It may also provide grounds for a franchisee to exit the franchise without negative financial or legal repercussions. Not only can a lawyer help with filing a lawsuit against a franchisor, but they can also help franchisees recover damages for any financial losses they suffered as a result.
Contract Violations Often Contribute to Dallas Business Disputes
When setting up and operating your franchise business, you will rely on contracts for numerous parts of your business. Your franchise agreement will be the most prominent contract you have. You will likely have a lease agreement, as well as employment and vendor contracts. These documents keep your business running smoothly and outline each party’s obligations, liabilities, and what actions should be taken in the event of a dispute. By having a lawyer review them, you can reduce your risks in advance.
Even with the most proactive steps, a breach of contract can still happen. It is a common factor in business disputes, and one that franchisees should be aware of and prepared for as much as possible. A lawyer can help you navigate your rights and options per the contract, and help you recover losses caused by the other party’s contract violations. They will negotiate and help you and the franchisor, landlord, employee, or vendor resolve your differences and find a satisfactory resolution.
Dispute Resolution in Dallas-Fort Worth
No matter how hard you try to avoid it, conflict will happen in business. It is important to prepare for this inevitability as much as possible by making sure you have taken steps to reduce your level of risk. This includes working with a lawyer who can provide advice, as well as help you by reviewing and negotiating all documents and terms so you understand how to avoid a legal situation. However, when these issues arise, your lawyer can help you resolve disputes using one of the four methods below:
- Negotiation is often the first attempt at resolving a dispute because it allows both parties to have maximum control over the outcome of their disagreement. It is also a way for both sides to minimize their risks and attempt to keep the dispute from escalating. Attorneys commonly provide guidance, communicate, and negotiate on behalf of their clients.
- Mediation allows both parties to work together to find a solution to their disagreement with the help of a mediator. This neutral party does not have the power to decide the matter, but they can help each party discuss their differences in a way that helps them find a satisfactory compromise and settle their dispute. Mediation also allows businesses to keep their issue confidential and resolve it faster and with less expense.
- Arbitration takes place between two parties and an arbitrator. Arbitration is often mandated in franchise agreements. In arbitration, both parties present evidence that supports their claim and highlights the other party’s role in causing their losses. Arbitrators hear both sides and can issue a decision to resolve the conflict at the end. While this process is private, less expensive, and shorter, you may not be able to appeal a decision made during arbitration.
- Litigation is used when an agreement cannot be reached by other means and arbitration is not required. This is typically a lengthy and expensive process, as both parties must participate in discovery, develop their case, file motions, and present their arguments in court. As the last dispute method, litigation results in a decision that will settle the matter, unless it is appealed. One of the downsides of litigation for businesses is that it is public record, so your conflict will not be confidential.
Talk with our Dallas business lawyers as soon as possible when a dispute arises. They can help you determine your options and will work closely with you to get a favorable outcome to protect your interests and assets.
Exiting a Franchise Business Should Be Strategic and Carefully Considered
Exiting a franchise can be a sticky situation at times. Regardless of the reason for wanting to get out of the business, you must tread carefully and understand your rights under the franchise agreement to avoid a legal issue. Franchisors may resist or deny your request to leave the business. As such, it is important to work with a lawyer who has experience helping franchisees successfully and safely exit a franchise and negotiate the terms of the exit.
Your Dallas business lawyer will first seek to understand the reason why you want to exit the franchise. If the reason concerns a violation by the franchisor, then it can be leveraged to your benefit. If you are seeking to get out from under the burden of the business, then your lawyer will look into options for moving forward. This may include selling or transferring the franchise, finishing out the term length of the franchise agreement, securing a different territory, or finding additional support to improve your situation.
Navigate Your Business Matters in Dallas-Fort Worth With Confidence
Luther Lanard, PC is dedicated to helping franchisees worldwide. We understand your concerns and are ready to find solutions that secure better outcomes and give you the support you need. From drafting documents to settling disputes, our knowledgeable team gets results. With more than five decades of experience, we are able to handle numerous situations, navigate them effectively, and achieve your business goals.
Regardless of what capacity we serve in, you can be confident that you will receive exceptional service that allows you to continue doing what you do best. We empower you to succeed by making sure you have the resources you require and amplifying your voice as needed throughout the duration of your business.
Contact Our Business Lawyer in Dallas, TX
Luther Lanard, PC serves franchisees by providing creative solutions that protect them and help them be successful. Your concerns are our concerns, and we provide legal support so you can better focus on your business. We know that every business owner in Dallas has a different set of needs, and we work closely with you to come up with a personalized plan for how to move forward. To get started, contact our franchisee law firm today to schedule a consultation with our team.