When business is going well, many business owners seek to expand into franchising. Whether you’re the business owner who wants to do this, or a business-inclined individual who wants to purchase a franchise of an existing business, having a franchise law attorney is the right first step. There will be documentation needed, and legal representation is a powerful way to start on the right track.
The Difference Between Franchisor and Franchisee
The franchisor is the person or entity who’s trusting someone by giving them the rights to certain aspects of their business. They’ve either created or built up the business, and now they are ready to expand. In many cases, this is a very lucrative choice for the franchisor as they’ll receive royalties from this scenario.
The franchisee is the person or entity agreeing to expand the business. They purchase certain aspects of the franchise by way of specific legal agreements, and they benefit from the profits by complying to specific requirements, rules, and regulations. Usually, the franchisee and franchisor have a continuous relationship throughout the life of the franchise.
Before any of the above can be put in place, legal requirements must be met. This is where your franchise law attorney comes in. Franchise Disclosure Documents (or FDDs) are the documents that the franchisor gives a franchisee for review. It’s extensive, complex, and contains crucial legalities and provisions.
Although it can be a daunting document, it’s important that people who consider starting or expanding a franchise review them. Your franchise attorney can help you understand the document, clarify and explain certain clauses.
How Cronus Law PLLC Can Help
At Cronus Law, a Phoenix, Arizona franchise attorney firm, we understand that you want to run your franchise right. We can review your FDDs with you and all other franchise documents.
We can also help you with the documentation required to start or expand a franchise as the franchisor, or even transfer the franchise when it’s time if you decide to do so.
Additionally, if there’s ever a dispute, we’ll be there for you. We can guide you through the process and prepare the required documentation for you. We hope it never gets to this, but we’re prepared to protect your assets with knowledge and experience.
Expansion and Sale
If you are the franchisor and are ready to sell franchises to expand your business or simply to begin a different business venture, we can help. There are documents to prepare, and we’re well versed in helping you with this need. We give you the professional counsel you need to feel ready to make the right choice for your business.
Request a Consultation
To request a consultation with one of our Phoenix, Arizona franchise attorneys, send us an email at email@example.com, or call us Monday through Friday from 8 a.m. to 5 p. m. at 480-467-3188. We look forward to helping you expand, start, or evaluate your franchise needs!