Not everyone wants to go into business for themselves. Some prefer to let others handle the decision making processes. If you are an enterprising entrepreneur looking for a good business opportunity, purchasing a franchise might be the way to go. You will have independence with the assurance you are offering the buying public a brand with an established reputation and immediate name recognition. In order to get the best deal, you will need the services of an expert in the franchise and dealership law Illinois firms handle.
One of the first documents you will see when you begin the process of becoming a franchisee is known as the Franchise Disclosure Document. This legal instrument outlines the general terms and conditions under which you will become an owner of a particular franchise. All franchisors are required by the Federal Trade Commission to make it available prior to any contract agreement. These are not easily read. They require someone familiar with legal language and complicated terms to interpret them.
In addition to the disclosure documents, there will be a separate contract agreement between you and the franchisor, which is drawn up by their attorneys, and provides the exact terms and conditions under which you will operate. Some of the items in the contract include dispute resolution, transfer restrictions, audit rights, supervision, time dedication, insurance and guaranties.
Unless you have been involved in other franchises, you probably won't know whether your contract is comparable to others or has unusual conditions included. A good attorney will be able to look the documents over and point out anything outside the normal conditions. Any questions you have can be answered before you actually sign the documents and commit yourself to a formal partnership.
You may believe the contract you receive from the franchisor is non-negotiable. They might even tell you that is the case. You may not be able to amend initial fees or the royalty structure, but there could be items in the contract that can be reworked to your satisfaction. Some of the areas of compromise might include protection of territory, audit expenses, transfer of ownership, non-compete clauses, and indemnification.
Transaction documents are only a part of the business process. Your attorney can help you with other stages of the operation such as deciding on the type of entity you will create that will most effectively protect your assets. You may need assistance with real estate transactions, leases, hiring management personnel, and ownership agreements.
Legal services are expensive, and you need to know you have the best possible representation when you hire an attorney. It is a good idea to ask questions about the individual's expertise, such as the number of franchises he or she has helped establish and how familiar disclosure documents are to them. If you can find someone who is respected in the legal community, lectures peers, or has published relevant work, so much the better.
Franchises are great opportunities to make money and have satisfying careers. In order to get the best deal, you will need the services of an experienced professional to help you navigate the complexities of the process. You will be glad you made the call.
One of the first documents you will see when you begin the process of becoming a franchisee is known as the Franchise Disclosure Document. This legal instrument outlines the general terms and conditions under which you will become an owner of a particular franchise. All franchisors are required by the Federal Trade Commission to make it available prior to any contract agreement. These are not easily read. They require someone familiar with legal language and complicated terms to interpret them.
In addition to the disclosure documents, there will be a separate contract agreement between you and the franchisor, which is drawn up by their attorneys, and provides the exact terms and conditions under which you will operate. Some of the items in the contract include dispute resolution, transfer restrictions, audit rights, supervision, time dedication, insurance and guaranties.
Unless you have been involved in other franchises, you probably won't know whether your contract is comparable to others or has unusual conditions included. A good attorney will be able to look the documents over and point out anything outside the normal conditions. Any questions you have can be answered before you actually sign the documents and commit yourself to a formal partnership.
You may believe the contract you receive from the franchisor is non-negotiable. They might even tell you that is the case. You may not be able to amend initial fees or the royalty structure, but there could be items in the contract that can be reworked to your satisfaction. Some of the areas of compromise might include protection of territory, audit expenses, transfer of ownership, non-compete clauses, and indemnification.
Transaction documents are only a part of the business process. Your attorney can help you with other stages of the operation such as deciding on the type of entity you will create that will most effectively protect your assets. You may need assistance with real estate transactions, leases, hiring management personnel, and ownership agreements.
Legal services are expensive, and you need to know you have the best possible representation when you hire an attorney. It is a good idea to ask questions about the individual's expertise, such as the number of franchises he or she has helped establish and how familiar disclosure documents are to them. If you can find someone who is respected in the legal community, lectures peers, or has published relevant work, so much the better.
Franchises are great opportunities to make money and have satisfying careers. In order to get the best deal, you will need the services of an experienced professional to help you navigate the complexities of the process. You will be glad you made the call.
About the Author:
Get an overview of important things to consider when selecting a franchise and dealership law Illinois practitioner and more information about an experienced attorney at http://www.cdcaruso.com right now.
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