Not everyone wants to be a business owner. Some are more comfortable working for others who make the decisions and take the risks. There is a large segment of the population that would consider becoming independent if it was economically feasible and made good business sense. These individuals might want to think about becoming a franchisee or dealer. Before they do so however, it is important to get professional assistance experienced in the franchise and dealership law Illinois firms specialize in.
There are specific requirements all franchisors must meet when it comes to potential franchisees. They have to provide a copy of their Franchise Disclosure Document, FDD, to meet the Federal Trade Commission guidelines. This document outlines all the terms and conditions involved in any partnership agreement between the two parties. They are typically long, full of legal language, and complicated. It may take a seasoned professional to explain all the details in the document to you and point out any potential areas of concern.
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 are already familiar with franchises, you probably won't know whether the documents you are expected to sign are standard or not. This is especially true if you don't have anything to compare them to. A good attorney will be able to go over the documents and point out any items that should cause you concern.
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.
There is more to going into business than negotiating with the franchisor. You may need legal advice on whether to start an s-corporation, limited partnership, or limited liability company. You might need someone to negotiate lease agreements, establish ownership agreements, and interview key personnel.
Professional assistance is expensive, and you need to hire someone with expertise and experience in this field. When you initially meet with an attorney, you should ask how many franchises he or she has helped to negotiate and how proficient they are in the matter of reading disclosure documents. Trusted professionals often are published authors and lecturers.
Becoming an independent business owner is a great opportunity for the right individuals. Owning a franchise gives you instant name recognition, an established product or service, and credibility. An experienced lawyer can help you get started on the right foot.
There are specific requirements all franchisors must meet when it comes to potential franchisees. They have to provide a copy of their Franchise Disclosure Document, FDD, to meet the Federal Trade Commission guidelines. This document outlines all the terms and conditions involved in any partnership agreement between the two parties. They are typically long, full of legal language, and complicated. It may take a seasoned professional to explain all the details in the document to you and point out any potential areas of concern.
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 are already familiar with franchises, you probably won't know whether the documents you are expected to sign are standard or not. This is especially true if you don't have anything to compare them to. A good attorney will be able to go over the documents and point out any items that should cause you concern.
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.
There is more to going into business than negotiating with the franchisor. You may need legal advice on whether to start an s-corporation, limited partnership, or limited liability company. You might need someone to negotiate lease agreements, establish ownership agreements, and interview key personnel.
Professional assistance is expensive, and you need to hire someone with expertise and experience in this field. When you initially meet with an attorney, you should ask how many franchises he or she has helped to negotiate and how proficient they are in the matter of reading disclosure documents. Trusted professionals often are published authors and lecturers.
Becoming an independent business owner is a great opportunity for the right individuals. Owning a franchise gives you instant name recognition, an established product or service, and credibility. An experienced lawyer can help you get started on the right foot.
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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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