Jump Starting Your Business Start-up
If you want to live the dream of owning your own business, buying a franchise is an option you should consider. Buying the right franchise can provide you business ownership, a proven idea, a developed business system and instant name recognition.
Like any business venture, however, a franchise is not guaranteed to be successful. You will be putting a lot of faith (and money) in the franchisor. You will be asked to sign complex agreements that will bind you for years if not decades.
Many brilliant people have come up with quality franchises, and utilizing their ideas may be the path you have been looking for to become a business owner.
How Epiphany Law Can Help
Epiphany law is in the unique position of having extensive experience both representing franchisors and franchisees. This experience allows us to provide you with a better analysis of what to expect should you choose to buy a franchise. Our goal is to make sure that you have a clear picture of exactly what you are getting when you buy your franchise so that you can ultimately be successful.
To accomplish this goal, the attorneys at Epiphany law will review your Franchise Agreement before you sign it and provide you with an analysis of the material terms and conditions of the Agreement. In addition, our attorneys can assist in drafting and negotiating substitute language.
Questions & Answers
Q: Aren’t all Franchise Agreements standard?
A: No. Franchise Agreements come in all shapes and sizes. While all Franchise Agreements are drafted to favor the franchisor, some are more onerous than others. Thus, it is critical for you to have an experienced business attorney review the Agreement to ensure your understanding of it.
Q: Can I transfer a franchise?
A: Whether or not you can transfer your franchise depends upon what the Franchise Agreement provides. Obviously, you will want to transfer your franchise business at some point; whether that is to your children or a third party. While it is reasonable for the franchisor to be able to review the new owner, it should not be impossible or prohibitively expense for you to transfer your business.
Q: What fees should I expect to pay?
A: Again, that depends upon the Franchise Agreement. Typically, there is an initial, one-time, franchise fee that is paid at inception. In addition, there are generally royalty payments made monthly. Many franchisors also require a monthly payment toward an “Advertising Fund.” Recently, however, franchisors have been adding many more creative fees with the hope of taking advantage of naive franchisees.