Buying And Selling Franchises With The Help Of A Franchise Lawyer
Buying or selling a franchise is a big step for any entrepreneur. However, there is much more to buying and selling franchises than just signing documents or having the necessary funding. The details involved can quickly become overwhelming. As a result, you must go in with your eyes wide open so that you can maximize the value of your investment or the return on years of hard work. Whether you are buying or selling, working with a seasoned California franchise lawyer can ensure that the process is successful and proceeds as smoothly as possible.
Laying the Groundwork
We will work with you to prepare a letter of intent or term sheet for an eventual agreement to buy or sell a franchise. The letter of intent can be a very important document in purchasing a franchise. One reason is many lenders or other parties will not commit to the transaction until you have formally announced your intention to buy or sell the business. It can also help formalize the process, providing a clear record of when you began discussions and set parameters for future negotiations. Second, it can ensure that all parties are on the same page before investing the time and money in the due diligence and financing processes.
While there are plenty of online templates, a customized letter of intent drafted by an experienced franchise lawyer can help avoid future confusion and disputes. We know how to draft these preliminary agreements so that it accounts for any of the risks attendant in selling a franchise and so that it complies with the requirements of the franchisor. We also know how to take a client’s concerns and articulate the protections necessary to account for them.
Forward-Thinking, Carefully Drafted Agreements to Facilitate the Transaction
Once the letter of intent has been drafted and all parties are willing to proceed, the next step is to draft the documents needed to complete the sale or purchase. We will work with our clients to negotiate and draft the following as applicable:
- Asset purchase agreements
- Stock purchase agreements
- Transfer agreements
- Consulting or related agreements
We structure these agreements to help mitigate and protect you from post-sale issues. Our goal is to give you peace of mind and avoid the common post-sale pitfalls that can undercut the value of the transaction.
Responsiveness and Knowledge That Will Accelerate the Transaction
During this process, we will work with your lender to the extent applicable to ensure your lender has all the proper documentation for any loan tied to buying a franchise. This will help you get the deal funded as quickly as possible so you can move onto the next step in your new venture. We understand how lenders operate, what information they will need, and address their most common concerns. It’s easy for the purchase to get bogged down at this stage, but agile and responsive legal representation can minimize delays.
If you are purchasing a franchise, we can help you with the lease to open your new store. If you are selling a franchise, we will also work with your landlord, to the extent applicable, to ensure the lease is properly transferred. We also can help navigate any potential lease disputes that could jeopardize the transaction. We also make sure deposits and other funds are appropriately handled upon transfer of the lease.
When buying a franchise, it’s important to work with an experienced franchise lawyer to review, and if possible, negotiate the franchise agreement. When it comes to selling a franchise, we also work with the franchisor to obtain consent to the transfer. We will review your franchisor’s transfer requirements and ensure the sale is compliant (to the extent your state’s franchise relationship law requires it). We will help you communicate with your franchisor so the franchisor is involved in the process and not an impediment to closing a sale.
Buying or Selling a Franchise? Contact Luther Firm, PC
The purchase or sale of a franchise is a major undertaking, fraught with potential problems if you aren’t careful. California franchise lawyer Doug Luther has extensive experience assisting in the purchase and sale of franchises. He knows how to navigate the challenges and how to avoid the potential issues that can jeopardize the transaction or undercut your return on your investment. Whether you are in Orange County, Southern California, or beyond, if you are considering purchasing or selling a franchise, call or email us today to learn more about how we can help.