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Consulting with a franchise attorney is important before entering a franchisee/franchisor relationship. Here are a few reasons you’ll benefit from receiving legal advice from a franchise lawyer.

A Lawyer Can Help You Choose the Right Business Entity

It’s important to choose the right business entity for your franchise. Your chosen business entity impacts your rights, liabilities, and taxation of your business.

Selecting the wrong entity can have negative financial implications and affect your ability to effectively run your franchise.

You’ll Have a Better Understanding of the Franchise Documents

Entering into a franchise agreement requires you to sign the franchise disclosure document (FDD). The FDD includes the franchise agreement, personal guarantees, the area development agreement, and applicable amendments.

Your attorney will explain any unclear language in the FDD and make sure that you understand your obligations. They’ll also confirm that the FDD adheres to state and local laws.

This allows you to address and mitigate problems before they occur.

Hiring an Attorney Can Ultimately Save You Money

It’s tempting to try to reduce your costs, but hiring legal representation is a smart decision. Legal counsel helps you make sure that the franchise is a good investment opportunity and fits your needs.

You Have Options if the Relationship Doesn’t Work Out

Few people invest in a franchise expecting the relationship to turn sour. If your personal circumstances change, you discover the franchise is a bad fit, or you feel the FDD included false information, your attorney will help you explore your options.

Your Attorney Will Advise You About Licenses and Other Business Documents

In many states, you need certain items to run a business, including a business license, employment agreements, and lease agreements. A lawyer will see that you have all the items you need to legally operate your franchise while protecting your financial interests.

Contact a Franchise Attorney

Have more questions about entering a franchise agreement? Contact Warren S. Dank, Esq. P.C. to schedule a free consultation.