Generally, there are two main types of franchises:
Before you decide on what franchise to purchase, you should investigate the background and nature of the franchise company. Some questions to ask include:
The franchise agreement is the contract that establishes the relationship, including rights and obligations, of the franchisor and franchisee. Generally, the franchise agreement provides the following:
It is best to have an attorney review the franchise agreement before you sign it.
Many franchise companies are subject to the strict guidelines of the Federal Trade Commission (FTC). The FTC requires, among other things:
A lawyer can help you determine whether you wish to become a franchisee, start your own business or buy an existing business. When entering into the franchise relationship, an attorney can help you negotiate a franchise contract that best suits your business goals and priorities. A lawyer may also help you find legal relief if a party to the franchise agreement does not perform as promised, or is imposing unreasonable requirements.
Last Modified: 05-05-2014 02:46 PM PDTLaw Library Disclaimer
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