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Franchise Lawyers Plymouth Meeting
Franchises are a great opportunity to start a business without the same level of risk as an independent business. A franchisee can draw on the experience, processes, and success of a franchisor while retaining some level of independence. If opening a franchise in Pennsylvania is a business avenue that you are interested in pursuing, then it is important to hire a Plymouth Meeting franchise lawyer to ensure you are legally protected throughout the process.
Our Skilled Pennsylvania Franchise Lawyers Plymouth Meeting team from Luther Lanard can guide you through the process, helping you maneuver among the various legal requirements you must follow. Since a franchisee must also maintain a working relationship with the franchisor, a lawyer can ensure the right agreements and terms are in place to create an amicable partnership, as well. Our team is ready to help you whether you are opening your first franchise, need to resolve an issue or need an assessment of your operations and structure.
An Overview of Franchising and Franchise Law
Franchising occurs when a business owner decides to replicate their existing business model and process to expand their business into other locations. However, rather than overseeing these additional locations directly, the owner/franchisor allows other individuals/franchisees to invest in and own a portion of the business. The business still remains under the control of the franchisor, but franchisees have the ability to access the owner’s network and resources while still retaining some business independence.
Franchise laws are the regulatory guidance that governs various legal aspects of a franchise business. From buying into the franchisor’s existing business to dispute resolution, franchisee law firms facilitate compliance measures and provide counsel that is designed to protect franchisees and their investments. They can draft and review franchise agreements, represent franchisees, and help resolve disputes if they arise. Franchise laws can be very complex, and having a lawyer on your side can set you up for success.
A franchised business vs. independent business ownership has the potential to be more successful with lower risk. However, it is best to consult with a franchisee attorney in Plymouth Meeting, PA to determine if you are in a good position to pursue a franchise.
Federal Considerations
The Federal Trade Commission (FTC) provides oversight and regulation of the franchise industry. One of the guiding principles in place is the franchise rule. This rule states that prospective franchisees must be provided with all relevant information about the franchise business in question so they can thoroughly understand the benefits and risks and determine if they wish to move forward. This information is outlined in a disclosure and provided to the prospective franchisee to review as they make their decision.
Compliance with the franchise rule is important for protecting the legal rights of both parties. It allows franchisees to understand the specifics of what they are choosing to pursue and protects franchisors from providing business access to individuals who are not prepared for the responsibilities that come with it.
State Considerations
Franchises are governed on the state level as well. These state-specific laws provide instructions and guidance on several matters related to franchises. Pennsylvania laws related to franchises can be found in Pennsylvania Consolidated Statutes Title 15.
The Importance of a Federal Disclosure Document
According to the FTC’s franchise rule, all franchisors are required to provide prospective franchisees with the Franchise Disclosure Document (FDD). In order for the franchisee to understand all the obligations, background, and restrictions associated with the business, franchisors must disclose 23 very specific pieces of information about their business. This document must be provided at a minimum of 14 days before the franchisee is expected to sign any contract or agreement. The contents of the FDD document shall include the following:
- The franchisor’s background, the duration of their franchise business, any parent companies, affiliates, or predecessors they have, and any special license requirements
- Background on the business and its directors, executives, officers, and management styles
- History of litigation, improper conduct, and/or broken agreements
- Whether or not the franchisor has filed for bankruptcy at any point.
- Initial franchise fees
- Ongoing costs
- Initial investment expenses
- Restrictions on your business operations, products, and services.
- Conditions for specific locations or territories in which the franchise must conduct business.
- Terms for engaging in e-commerce activities.
- Franchisee contribution and involvement in advertising and training.
- Legal responsibilities on the part of the franchisee.
- Type of support and level of involvement on the part of the franchisor.
- Logos, trademarks, and/or service marks that the franchisor owns.
- Copyrights, proprietary information, and other intellectual property owned by the franchisor.
- Daily business obligations required of the franchisee.
- Terms of renewing, terminating, or transferring responsibilities in regard to the existing contract. Additional terms and processes for dispute resolution.
- Type and nature of relationships franchisor has with public figures.
- Claims about the financial health of the franchise and sales and/or earnings.
- Detailed information about prior franchises, including turnover, growth, investments, financial data, and former franchisees.
- Financial statements and records.
- Copy of the agreement being proposed. It should include information and conditions about leases, finances, purchases, and other relevant information.
- Confirmation that the franchisee received the document.
The Benefits and Drawbacks of Being a Franchisee
Like anything else, there are both advantages and disadvantages to becoming a franchisee. When deciding whether or not to move forward with investing in a franchise, it is important to weigh both sides of the matter to determine if it makes sense for you, your finances, and your lifestyle. Some benefits you could enjoy as a franchisee include:
- Lower startup costs, risks, and rate of failure
- Recognized brand and loyal customer base
- Potential for franchisor support
- Increased buying capabilities and profit margins
Conversely, some drawbacks you may have to contend with include:
- Startup costs and ongoing fees
- Adhering to restrictions set by the franchisor
- Potential for disputes to arise between you and the franchisor
- No financial privacy
It is vital you take each of these facets into consideration and discuss your options with a franchise lawyer in Plymouth Meeting. Talking with a lawyer also ensures you are in a good position to take this on and are legally protected, should you choose to move forward.
Examples of Successful Franchises
There are many franchises in the U.S. that are well-known and frequented by the majority of the population. Each of these businesses has identified a business model and perfected a process that has helped them become the franchise giants they are known as today. Some of the most common examples of successful franchises include:
- 7-Eleven
- The UPS Store
- Chick-fil-A
- KFC
- McDonald’s
- Re/Max
- Pet Supplies Plus
- Pizza hut
- Midas
- Marriott
- Ace Hardware
- Great Clips
- Anytime Fitness
Franchisee Law Firms Near Me Can Provide Guidance on Important Decisions
If you are considering buying and operating a franchise, it is important to understand what you are getting yourself into. Besides making sure a franchise is a feasible option for you, you will also have to make several big decisions when pursuing this option.
You must first decide if buying a franchise is a good fit. You may want to own your own business, but you must choose whether you want to be the sole owner or join a tried-and-true existing network of businesses that still allows you some autonomy. You must ask yourself if you have the time to devote to the type of franchise you want to buy and whether or not you have the skills that will be required to successfully manage such a business. It is recommended that you take your time and consult with legal and financial professionals when thinking about buying a franchise for the first time in Plymouth Meeting, PA.
If you are a well-established franchisee, your decisions are more likely to be operational. You are also going to have to make sure you are running your decisions by your franchisor in some instances to ensure alignment with their vision and the condition of your agreement. If disagreements arise over decision-making in ways that become problematic, then it may be time to contact a franchisee lawyer to help settle the issue.
Franchisee Attorneys Near Me Can Assist with a Wide Range of Legal Matters
Issues can arise whether you are investing in a franchise for the first time or have been a franchisee for years. Regardless of what issues you may be facing, these problems can significantly impact your relationship with the franchisor and your ability to do your job. To ensure your rights are protected, you are legally compliant, and your business relationship with the franchisor is preserved, it is best to hire a franchisee law firm to provide counsel on the legal aspects of your business operations. Some issues that a franchisee attorney near me can help with include:
- Buying and selling a franchise
- Reviewing the franchise disclosure document
- Renewal, transfer, or termination of franchise agreements
- Compliance issues
- Issues arising from franchise and remodel requirements
- Breach of contract
- Franchise litigation
- Franchise disputes
- Franchise restrictions
- Encroachment
Each one of these issues can quickly sour a franchise relationship if not dealt with quickly. Such problems can even affect the ability to operate your business. To ensure the health of your franchise business and relationship, it is advised to retain the services of Franchisee Lawyers Near Me for the purposes of ongoing questions, concerns, disputes, and prevention measures.
The Advantages of Hiring a Franchisee Lawyer Near Me Law Firm
Hiring franchisee attorneys can make sure you are protected from day one. They can draft and review important documents and make sure your franchise agreement is fair and legally sound. A lawyer can also help you vet your potential franchisor and make sure their operations and business are healthy and legitimate. You have the right to conduct your due diligence when pursuing a franchise opportunity, and a lawyer can help you research, review, and evaluate the findings.
In the event that franchise disputes arise, a lawyer will also provide valuable representation and aim to resolve the issue as quickly and amicably as possible. Depending on the nature of the conflict, a lawyer may try to use negotiation or mediation to allow both sides a chance to be heard and reach a resolution that is satisfactory and fair to both parties. Arbitration may be another viable option to pursue if a stronger form of action is needed. A decision can be made regarding your dispute without having to go to court. However, your lawyer is equipped and ready to pursue litigation if that is the best option for securing a favorable outcome for you.
When you have the help of a trusted lawyer in Plymouth Meeting, Pennsylvania, you can have peace of mind about your investment and business interests at every stage. You are able to reap the benefits of your lawyer’s extensive knowledge and experience in federal and state franchise law. They will apply the most up-to-date and effective practices and strategies to your needs and tailor them accordingly.
Why You Should Choose Luther Lanard as Your Franchisee Lawyer
Luther Lanard has a seasoned team of legal professionals who provide excellent services in all areas of franchise law. While our team has a global reach, we ensure each client receives services that are customized to their specific situation and needs. With your best interests at heart, we make sure your voice is heard during negotiations, agreements, and dispute resolutions between you and your franchisor.
Our Franchise Lawyers Plymouth Meeting Law Firm Can Provide Exceptional Representation
Luther Lanard is devoted to helping franchisees be successful in their business endeavors and provides trusted counsel at all stages of the franchise process. No issue is too small when it comes to protecting your business rights as a franchisee and everything you have worked hard to build up. With more than 50 years of combined experience, our franchisee lawyers are your ally and provide you with the support and counsel you need. Contact us today to schedule a consultation and learn more about us and how our team can help you.