For those who are considering purchasing and owning a NYC franchise, there are a few things that need to be considered before signing on the dotted line. It is important to do your research to ensure that you know what exactly it is that you will be getting yourself into. If possible, talk to several current franchisees to get some of your burning questions answered. Have a business plan drawn up. Possibly visit, franchise headquarters. Once you’ve done your research and feel confident in making the leap into franchisee ownership, you’re almost there. You’ll have one more thing left to do, and it has to do with the legal aspect of owning a franchise.
You need to do everything within your power to protect yourself legally, and the only way to do that is to hire a franchise lawyer NYC. Here are four reasons, why hiring a franchise attorney will prove to be in your best interest.
1. They know what is important
By law, all prospective franchise owners are required to receive the Franchise Disclosure Document (FDD) prior to making the purchase. This document is generally 150-200 pages, and covers everything that the Federal Trade Commission (FTC) has determined that a prospective franchise owner will need to know about the franchise. It is vital to be intimately aware of everything that is contained within the FDD. Within the FDD you find certain restrictions and obligations that you’ll be required to abide by as part of a franchise, otherwise you could be terminated.
Franchise attorneys have specialized in franchise law and know what specifically to look for in the FDD and the actual franchise contract. Your attorney will know what to specifically look for in the FDD when reviewing prior to having you sign any document. Attorneys are also keeping up on the ever-changing laws regarding franchises that are specific to your state.
2. Advise you on a Business Entity
Should you establish your newly acquired franchise as an LLC? An S-Corp? Or a C-Corp? A competent franchise attorney will be able to offer useful suggestions when making this crucial decision. The entity that you choose will ultimately determine your legal rights and liabilities as the franchise owner, and will also determine how your business is taxed.
3. Help if things don’t go according to plan.
No one purchases a franchise and expects it to not be successful. But what happens if the unfortunate happens after you purchase and opened your franchise? There are a lot of factors that go into making a franchise successful, such as, how fast you can turn a profit, the location and so on. In the event that you find yourself in a situation where you are having to close your franchise, you’ll once again need the expertise of a franchise attorney.
4. Franchise Development Tells You that You Don’t Need an Attorney.
When a franchise development director tells you that you don’t need to hire a franchise attorney, and you’d be better off not wasting your money, he’d be lying. The real reason that a development director would make the claim that you don’t need an attorney, is that they want you to sign the franchise agreement. Salesmen are trained to get documents signed and in the case of a franchise agreement, they are trained to get a lengthy, wordy document, that is difficult for the average person to understand.
Warren S. Dank, ESQ., P.C. is a franchise lawyer NYC who has years of experience in helping franchise owners negotiate the world of FDD’s and protecting themselves. If you are thinking about purchasing a NYC franchise, give Warren S. Dank a call and hire the best franchise attorney in New York to protect yourself and your investment!