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Franchise Agreement Review

What is a Franchise Agreement Review?

There are a few things to remember when you are presented with the huge volume of documents representing the franchise agreement:

1. you have little, if any, leverage to change anything in the documents;
2. you have few rights under the agreement; and
3. you better understand what is in the franchise agreement, because if you donít your future business plans may crash and burn.

You should carefully research on the Internet the complaints of every disgruntled franchisee before proceeding.  Review pleadings in lawsuits filed against the franchisor to discover alleged franchisor contract breaches or misrepresentations made to prospective franchisees. Many franchisees have formed trade groups in an effort to leverage combined bargaining power against their franchisor.  Communicate with these groups before ever writing your first check, and before signing any document.

What are common concerns related to Franchise Agreements?

Reviewing the volume of documents representing the franchise agreement is a very time consuming undertaking, and to a lawyer, time is money.  And then explaining and summarizing the documentation to the client is also a lengthy commitment of time.  But if you donít understand the documents and then sign them, you will be bound by your agreement, whether or not you understand them.

I assist clients in reviewing, interpreting, and (occasionally) negotiating franchise agreements.

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