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The Importance of an Experienced Attorney in a Franchise Establishment

Nov 28, 2020

Many entrepreneurs are attracted to franchise operations regardless of whether they are extending a personal project into a national chain or buying into an established franchise network. The process can work in both directions, and it is fraught with legalities all along the way. Every industry has specific laws that will apply to daily functioning and get the company established legally with respect to financing, licensing, and other legal necessities before finally opening. The most crucial aspect will be the franchise contracts that are always the first step toward all of the other measures needed to be ready for opening day. And having the right attorney evaluating the franchise agreement is essential for a successful start to the project. That San Jose franchise attorney is at the Law Offices of Nicholas D Heimlich.

The Advantage of Having an Experienced Franchise Attorney

Buying a franchise in San Jose is not as simple as opening a personal operation with a sales goal in mind. The sign that comes with the franchise will also come with some strings attached. An experienced franchise attorney can identify potential liability issues and lack of control that most new business owners may not realize. The corporate office can intrude easily, and owners are often required to comply even when they may not be so inclined. This means that the details of a franchise contract matter greatly. In addition, many franchise attorneys have dealt with the parent corporation before and understand first hand what to expect after beginning the opening process.

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Potential Issues with a Franchise Contract

Franchise contracts are not all equal in scope or responsibility designation, and many times they are slanted to protect the parent corporation or company. The size of the national chain and the nature of the industry can create contractual differences. However, there are some general specifics that an experienced franchise contract review attorney can address immediately, including:

  • Royalty payment structure
  • Right to close
  • Right of First refusal
  • Litigation parameters
  • Non-compete clauses
  • Franchise territory

These are all elements of a standard agreement, but consideration for the franchisee is often reduced as much as possible by the franchise entity authorizing the contract. There should be no grey areas with contracts of this type because a business may not take off as intended from the initial store opening. The most important aspect of the overall agreement is how much autonomy the franchisee has with respect to business operation because all markets differ in competition level, and there are 5 additional essential components of a franchise purchase.

Subsequent Representation

Another consideration for franchise entrepreneurs is any subsequent problems that arise for whatever reasons. Having an attorney who already understands the business relationship of the parties is always an advantage because operating contracts will typically already be on file in the legal office. Legal representation is just as vital after opening the doors as it is in getting established with an effectively balanced operating agreement. This is an added benefit when you retain a designated franchise attorney. Learn more about protecting yourself from personal liability.

Contact the Law Offices of Nicholas D Heimlich

All aspiring entrepreneurs in California should contact the Law Offices of Nicholas D Heimlich California Franchise Contract Review Attorney, before making any final decision or signing any franchise agreement. Offices are located in:

  • San Jose CA
  • Santa Clara CA
  • Mountain View CA
  • Palo Alto CA
  • Los Gatos CA
  • Saratoga CA

Call or contact us today and let us put our experience to work for you.

CALL TODAY TO SCHEDULE YOUR FREE CASE REVIEW