How to Work With a Franchise Development Company

If you are at a loss over how or whether your business should expand by franchising its operations, a franchise development company can provide specialized consulting and business expertise to resolve your questions.

Franchise.Law is your best resource for guidance on how to work with a franchise development company. Our lawyers, who maintain North Carolina licenses, have a national practice that enables them to help franchisors in all 50 states. Our legal oversight and management could help your business get the highest benefit from its relationships with franchise development consultants.

How Can Legal Help Enhance the Work of a Franchise Development Company?

Franchising is strictly regulated by the Federal Trade Commission (FTC) and regulatory authorities in every state. A business’s Franchise Disclosure Document (FDD) is the core requirement of both federal and state regulations. You can work with a franchise development company to get the business expertise you need to prepare your FDD, but you need an attorney to verify your business’s strict legal compliance with FTC and state rules before you launch your franchising efforts. Experienced lawyers, like the team at Franchise.Law, could review your FDD to verify legal compliance and address issues that regulators are likely to raise.

More specifically, knowledgeable franchisor attorneys could:

Verify that representations in your FDD match your audited financial records and projections with no overstatements or exaggerations

Ascertain that your trademarks and other intellectual property are registered and secured

Confirm that you have defined territories properly so that new franchisees are not located in territories that expose them to conflicts with other franchisees

Establish clear employment boundaries between the franchisor and franchisees

Review that your internal franchisee training and support protocols match representations and expectations in the FDD

Do not wait – get in touch with us today.

How Do Attorneys Reduce Legal Risks in a Franchise Development Company Relationship?

Through their extensive experience, Franchise.Law’s attorneys have acquired in-depth knowledge of the franchise development company industry. That knowledge, combined with their investigative skills and abilities, enables them to evaluate how each company works with franchisors and whether they have exposed franchisors to legal liability.

Further, independent legal counsel could revise and update the franchisor’s FDD and other franchise documentation to reflect changes in the franchisor’s business and finances. In a growing business, FDD reviews should occur at least once per calendar quarter by legal counsel who is familiar with the business’s growth and expansion.

Most critically, many franchise development companies use general boilerplate agreements that do not provide strong legal protection for franchisors. Those agreements, for example, often limit a development company’s liability for certain types of services and impose undue risk on the franchisor to independently assess all recommendations. A seasoned attorney could draft a comprehensive contract that better memorializes the relationship between the franchisor and development company and assigns liability for errors more equitably.

Call Us for Specific Recommendations on Working With a Franchise Development Company

If you have built your business to a point where franchising is viable, you likely understand the value of hiring personnel who can handle matters outside of your area of expertise. If working with a franchise development company is one of those areas, the lawyers at Franchise.Law are ready and able to help. Please call our office to schedule a meeting with one of our lawyers before you begin working with a franchise development company.

I am a Franchisor

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I own a business and want to franchise

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Franchise dispute

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