We specialize in franchise issues and represent franchisees in a variety of contract negotiations, disputes and other matters arising from their contractual relationship with their franchising partner. Our experience is gleaned from years of practice as special counsel at a franchise general partner and leading U.S. franchisor.
If you are thinking of buying a franchise, it will be helpful for you to conduct an on-site visit of a current franchisee so that you can become familiar with the day-to-day operations and dig into the financial operations of that location. Understanding the rules and by laws of the franchisor before you begin will save you time and perhaps money not creating products or setting up distributorships that do not comply with the by laws.
Before purchasing a franchise, having a lawyer review the documentation related to the franchise purchase, the rules and requirements will enable you to become aware of the many considerations before a final decision is made. For example, how much money must be paid up front, is there financing, what are up front expenses for building, location, supplies, products, employees and benefit costs.
Most franchisors will have this information prepare in a financial statement that will enable you to make an informed decision. But it is incumbent upon you the franchisee to make sure this model fits your skills, personality and lifestyle. Many people have made franchise purchases without realizing the time or additional costs involved with the purchase.