Central Florida Franchise Lawyer

If you are considering starting a business but want the support and proven success of an existing business, franchising can be a great business model to explore. You do not have to start from the ground up but do get to retain some autonomy. However, while a franchise business can be the best of both worlds, it can also be very complex. A franchisee should work closely with a Central Florida franchise lawyer to ensure they are protected and meet all compliance standards.

Luther Lanard PC Central Florida Franchise Lawyer can help you navigate the requirements and complexities that come with franchises. Whether you are investing in a franchise for the very first time, have ongoing needs as an established franchisee, or have disputes that need to be settled, a Florida franchise lawyer ensures that you have what you need to operate successfully.

The Franchise Model

A franchise is a business model where a business owner, also known as a franchisor, expands their business and opens it up to other individual owners, known as franchisees, to invest and operate other locations under the franchisor’s name. Franchisees receive access to the franchisor’s network of connections, capital, resources and assets, and customer base. Franchising allows the franchisor to grow their business beyond what they could do themselves and increase their capital and presence without having to be fully involved. It also allows the franchisee to have part ownership in a business without the risk and at the same level of expense as an independent business.

Additionally, franchises are governed at the federal and state level. The Federal Trade Commission (FTC) regulates the necessary requirements for franchises. They dictate what information must be provided, what processes must be followed, and other compliance regulations. On a more localized level, each state also has control and oversight over franchising operations within their state. Florida has franchise statutes in place to outline the legality of various franchise activities and how they should operate.

Types of Businesses That Are Most Commonly Franchised

Franchised businesses are abundant throughout the U.S., and some industries are particularly conducive to this business model. Many of these are familiar businesses that are frequented on a regular basis, such as Chick-fil-A, Marriott, and the UPS Store. Some commonly franchised industries include:

Fast food
Automotive services
Hospitality/Hotels
Home services
Hair salons
Health and beauty services
Storage facilities and services

Skills and Qualities Needed for a Successful Franchise

Like running any business, certain qualities and skills can make or break its success. Possessing these qualities can also make it easier to deal with the ups and downs of the business, build customer loyalty, and meet the business and legal obligations for basic operations. These aspects are also important to consider when thinking about pursuing a franchise. Some qualities of successful franchisees include:

Patience
Resilience
Compliance
Work ethic
Passion
Growth mindset
Confident
Social skills
Collaborative

The Role of the Franchise Rule and Franchise Disclosure Document

When a prospective franchisee is considering investing in an existing franchise, the FTC requires franchisors to provide all relevant information on their business to the prospective franchisee. This is known as the franchise rule, and it ensures transparency between both parties so a potential franchisee can make a decision with all the facts in hand. According to the franchise rule, this information must be provided in the form of the Franchise Disclosure Document (FDD). The FDD contains very specific information about the franchise and has to be provided to the franchisee at least 14 days prior to investing or signing any contracts or agreements. Twenty-three items must be disclosed within the FDD and include the following information:

The franchisor’s background, including how long they have been in business, any parent companies they own, affiliates they have, predecessors, and any special licenses that may be required
Background on the business, including information on its directors, executives, and officers
History of any litigation the company has engaged in, improper conduct it has been accused of, and/or agreements with other parties that have been broken
Any history of bankruptcy
Required startup fees for the franchise
Any costs that are expected to be ongoing
Cost to invest initially
Restrictions the franchisor will place on the operations, products, and services of the business
Locations or territories that may have specific conditions about how or where the franchise must conduct their business
E-commerce operation conditions
Extent of involvement and financial contribution to the business’ advertising and training efforts
Franchisee’s legal obligations
How involved the franchisor will be in the franchise business
Franchisor’s logos, trademarks, and/or service marks
Franchisor’s copyrights, proprietary information, and other intellectual property
Expectations of the franchisee’s daily participation and obligations in the business
Process for changing the terms of a contract, including renewal, termination, or transference of responsibilities, as well as processes for dispute resolution
Information about the franchisor’s relationships with public figures
Claims and information sales, earnings and overall financial health of the franchise
Turnover rates, investments, company growth, financial information, and information about former franchises
The franchise’s financial records and statements
Copy of the agreement document being proposed, containing information and conditions about leases, finances, purchases, and other relevant information
Confirmation that the document was received by the prospective franchisee

It is important to review this document very carefully and consult a franchise lawyer in Central Florida, FL to ensure that the franchise is legal, you and your assets are protected, and any negotiations are overseen by a legal professional.

Franchise Disclosure Document v. Franchise Agreement

There are many documents and processes involved when entering into a franchise — all of which a franchisee attorney should review. The FDD and franchise agreement are among the most prominent, and it is important to understand the differences between the FDD and the franchise agreement.

The FDD is primarily a due diligence tool to gain a thorough understanding of the franchise you are considering buying into. It ensures you have all the relevant information you need to make a decision and not invest blindly. It also outlines what is expected of you as a franchisee and your obligations during the initial investment and as an established franchisee. This document is for informational purposes only and is in no way binding.

On the other hand, when an individual decides to move forward with investing in a franchise and become a franchisee, they must sign a franchise agreement, which is legally binding. This contract outlines all the terms and conditions of the franchise and the obligations of each party. Because there can be very little room for negotiations or getting out of a franchise agreement down the line, it is vital to seek the seasoned counsel of a franchisee lawyer and have them review the contract carefully. You should thoroughly understand all the details and fine print associated with the franchise agreement before you sign your name to it.

The Importance of Due Diligence and How our Franchisee Lawyers Near Me Law Firms Can Help

While a franchise can be a great opportunity for many individuals who wish to pursue business ownership, buying into a franchise is not a decision to make lightly. You must first weigh what this would mean for your life and whether or not you are in a financial or lifestyle position to take this on. If you find that you are, then it is vital that you conduct due diligence when buying an existing franchise.

Due diligence is an opportunity for you to thoroughly investigate all aspects of your prospective franchise venture. You will want to research and understand the potential franchise’s products or services, operations, management style, financial situation, customer base, and legal history, among other relevant data. You should bring in franchisee lawyers at this point to assist you not only with your due diligence but also review, analyze, and interpret the findings to determine if you should move forward or not.

It is not recommended to enter into a franchise agreement without all the pertinent information to make an informed decision. To gain the knowledge you need during the due diligence period, it is important to do the following with the guidance of a franchisee lawyer near me:

Research the franchise and franchisor on the internet and their business website
Talk to other franchisees, both current and former, to learn about their experience, recommendations, and advice
Analyze the FDD for violations or inaccurate information
Read and review the franchise’s financial statements, records, and documents
Research and verify the business model of the franchise
Research and understand employee history and activity
Research any litigation activities the franchise has been engaged in
Develop a relationship with the franchisor
Understand when you will see a return on your investment
Always be on the lookout for red flags

Franchisee Law Firms Near Me Can Help with a Variety of Legal Needs

Because of the intricate structures, processes, and restrictions surrounding franchises, it is highly beneficial to have a legal professional to lean on at all stages of franchise involvement. A franchise is a big decision and commitment, and it is important that you have the support and resources you need to make sure you are not risking your investment. Additionally, even though you are likely under many restrictions as a franchisee, you do still have rights that a lawyer can help safeguard. Regardless of where you are at in your franchise journey, a franchisee law firm in Central Florida, FL can provide services and representation in the following areas:

Purchasing or selling a franchise
Business formation agreements
Legal reviews
Due diligence
Drafting, reviewing, and negotiating contracts
Dispute resolution
Breach of contract
Fraud or unfair practices
Renewing, selling, transferring, or terminating a franchise agreement
Encroachment
Misclassification issues
Mediation, arbitration, and/or litigation
Compliance reviews and resolution
Franchise restriction issues

How our Central Florida Franchisee Attorneys Can Support and Represent You

Franchisee law firms play an important role in your decision to become a franchisee, as well as preserve your business and working relationship. They act as advocates for you and keep your best interests at the heart of everything they do. With so much at stake, your lawyer will ensure your potential business venture is legally sound and will not put any of your assets at risk. To do this, they will conduct an in-depth investigation and review all documents and records to evaluate the legality of the franchise’s business and business activities. They will also draft and review a variety of contracts and agreements that you will need to get started and maintain ongoing operations.

A franchisee attorney near me is also adept at resolving franchise disputes as they arise. They can provide effective representation to protect your rights and preserve the business relationship as much as possible. A lawyer will evaluate the situation and determine strategies that can be used to resolve the problem as quickly as possible. They will also assess what method of resolution may be best to reach an amicable outcome.

Resolving a dispute is often done through the use of mediation, arbitration, or litigation. Mediation and arbitration are the least expensive and time-consuming methods for settling a franchise dispute. Mediation allows both parties to have their side heard with the aid of an objective third party and reach a decision that both parties are satisfied with. During arbitration, a qualified individual, similar to a judge, makes a decision about a case that is legally binding. When these methods fail, going to court and litigating the matter may be the only option. A skilled lawyer will fight for you regardless of how your dispute must be resolved.

Hire a Franchisee Law Firm Near Me for Top-Tier Representation

Luther Lanard protects your interests as a franchisee so you can succeed in business. Our skilled franchisee attorneys are dedicated to providing you with sound and trusted counsel regardless of your franchise needs. We advocate for you so you see a positive return on your investment. To learn more about how we can support you and your franchise, contact us today to schedule a consultation with our experienced team.