Understanding and Planning
Understanding that the decision to franchise a business can be daunting and overwhelming, we provide both established and start-up franchise systems with a full range of legal services. We meet with our clients as often as necessary to determine the direction which they plan to take and to analyze their long terms goals and objectives.
Prior to preparing the disclosure documentation, we will analyze the current business and determine if the franchisor is prepared to proceed. If not, we assist our client in reaching that level. Some of the services which we provide with regard to this matter include the preparation and filing of the necessary documentation to effect the franchisor’s incorporation; preparation and filing of the necessary documentation to receive the federal tax identification number; procuring the corporate book, seal and stock certificates; and preparing and filing the documentation necessary to obtain corporate federal trade name registration.
Once the franchisor is prepared to proceed with franchising the business, we provide our client with easy step-by-step worksheets, which we use to prepare all of the disclosure documents required by and in accordance with the Federal Trade Commission, including but not limited to the Franchise Disclosure Document (FDD), the Franchise Agreement, Territory Development Agreements, and the Exhibits to both the FDD and the Franchise Agreement. If necessary, we also prepare and file any state franchise registration documentation.
For the client who requires a more “hands-on” approach, we also review and assist in the preparation of the Operations Manual(s) and business plans and in pursuing financing strategies.
Upon request, we provide our clients with assistance in negotiating with potential franchisees and their legal counsel, preparing and sending disclosure packages to potential franchisees, reviewing and negotiating real property leases, reviewing potential/current franchisee corporate documentation to ensure compliance with the Franchise System; assisting in the notification and file update with regard to the franchisee’s annual obligations (such as minimum insurance requirements and corporate resolutions), reviewing statutory regulations and judicial decisions to determine their affect on the Franchise System and each of the franchise documents, and updating the franchise disclosure package accordingly.