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FEE &
JEFFRIES, P.A.
ATTORNEYS AND COUNSELORS AT
LAW |
Practice
Area |
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Franchise Law |
Many
individuals who decide to go into business for themselves are
choosing to purchase a franchise instead of inventing a new
concept. By doing so, they greatly reduce the risk of failure
in return for paying a relatively small franchise fee and
royalty obligation. Entrepreneurs pursuing this route typically
need help in the review of the franchisor’s Uniform Franchise
Offering Circular (UFOC) and franchise agreement, as well as
commercial lease and other agreements attendant to any new
business. While franchisors typically do not like to alter
their franchise agreements for a single franchisee, it is
important for prospective franchisees to understand all material
risks involved and in certain cases, demand that a provision be
revised. For example, we have found that some franchisors
require that the owner of a corporate franchisee personally
guaranty all franchise obligations, including franchise/license
fees that continue even if the franchisee is forced to close due
to insufficient sales. We assist prospective franchisees by
reviewing the operative documents, assessing pertinent risks and
negotiating required alterations if possible.
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