Three Critical Reasons You Need a Franchise Attorney

You have located a franchise opportunity that you would like to invest in. You have already spoken to a few franchisees and performed some due diligence, and now you are carving out a business plan to invest. Before signing a franchise agreement, however, here are some reasons you need a franchise attorney. A business attorney with experience in franchise investing is critical to your own self-protection in your planned investment.

A Franchise Attorney Knows the Law

Franchises are heavily regulated by both federal and state laws. Those laws grant important rights to prospective owners like you. One of those rights includes receiving the Franchise Disclosure Document (FDD) from the franchise. The Federal Trade Commission (FTC) requires this 150-page document to disclose important rights, obligations and restrictions to prospective owners before they invest in a franchise. If you fail to follow the FDD, your franchise could be terminated.

A franchise attorney is well-versed with FTC requirements and can help you fully understand the obligations and restrictions set out in the FDD.

An Attorney Protects Your Interests, Not Those of the Franchise

While a franchising opportunity seems promising, all business opportunities carry some level of risk. As an investor, you are responsible for protecting your own business and personal interests. Hiring a franchise attorney is the best way to do so.

Also, if the franchise does not follow through on their obligations under the franchise agreement, your attorney can use legal remedies to force them to follow the requirements. More important, your attorney will ensure that you carry out your own obligations under the FDD.

Finding Opportunities to Negotiate

The franchisor sets the terms of its franchise, and you are only an investor. However, with an attorney, you can level the playing field somewhat, and seek to make the terms of the franchise agreement more favorable to your interests. Depending on the amount of leverage you can muster versus the franchisor, your attorney may be able to negotiate areas like grand opening dates, support, transgression corrections, and more.

Handling Disputes on Performance

You and the franchisor must both honor all obligations within your agreement. However, if the franchisor feels you are not upholding their standards, they could try to terminate your franchise. Your attorney can assist you with disputes that may arise during your franchise ownership and protect you in disputes that might otherwise result in termination of your franchise.

Starting a franchise is complicated, but with assistance from an attorney at Udall Shumway, PLC, you can ensure your private and business interests are protected.

This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Reasons You Need a Franchise Attorney, or any other litigation matter, please feel free to contact Stockton D. Banfield at 480.461.5356, log on to, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.