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Whether you are selling your first franchise or own several you wish to divest from your portfolio, the process is precise, involving federal and state laws, numerous disclosures, and many legal actions. The talented attorneys at Franchise.Law offer a full range of services for franchisors and represent them throughout the country from our Charlotte, NC, home base. We know what to do if you are selling a business in a franchise registration state or one that has enacted supplemental franchise laws.
We are licensed to practice law in North Carolina and abide by multi-jurisdictional practice rules under federal law, including how franchises are regulated. If you are selling a franchise in Georgia and would like a seamless experience with superb attention to detail, call now to discuss your project.
Under the federal Franchise Rule, as a franchisor, you are obligated by the Federal Trade Commission (FTC) to provide a Franchise Disclosure Document (FDD) to buyers considering purchasing a business from you. This document divulges 23 pieces of information about the franchise offered for sale, company officers, and existing franchisees, among other information. The FDD is meant to educate a prospective buyer about the risks and benefits associated with the investment and must be shared prior to a sale. Franchisors are bound by specific periods, including a 14-day FDD waiting period and a seven-day disclosure period during which other pertinent documents are shared before signing or accepting any payments.
Some states also require a franchisor to register an FDD with a state regulator and possibly provide disclosures beyond the federal FDD. Although Georgia is not a franchise registration state, a supplemental filing is required if your franchise does not own a federally registered trademark. Other states require franchisors with federally registered trademarks to complete a supplemental filing. These federal and state rules can be frustrating and confusing if your franchises are located in different states. If selling a Georgia franchise sounds complicated, it can be without experienced and careful guidance provided by the lawyers at Franchise.Law.
The FDD is not the only document or service Franchise.Law could provide. We strategize with franchisors to determine what they need for a seamless sale, and we deliver in a timely manner. This could include drafting letters of intent that indicate both parties are serious about exploring the sale specifics, confidentiality agreements to keep negotiations private, and the asset purchase agreement, which outlines the conditions of the sale. We assist you with due diligence to ensure your prospective buyer can close the deal. We could draft non-compete agreements when necessary and negotiate advantageous terms for your Georgia franchise sale because we familiarize ourselves with market data and how your franchise is valued. We also ensure that all agreements you need when selling your business meet the requirements of state law.
Franchisors who violate federal laws are held accountable in a variety of ways by the FTC. These penalties may include:
To avoid errors and risking FTC penalties, talk to the attorneys at Franchise.Law before selling your franchise in Georgia.
You have built your brand to be widely recognized, and now franchising your business is the logical next move. Where do you begin? The precise legal requirements for franchisors may seem daunting, especially if your businesses are located in several states. Federal and state laws complicate matters, and one misstep could bring the FTC around to penalize you.
Our skilled team is well-versed in applicable federal and state laws to provide a complete and smooth experience when you are selling a franchise in Georgia or anywhere in the country. Call now so we can plan together for an advantageous outcome.