Buying a business | 2 min read
Buying a franchise is a huge commitment and investment, so it’s important that you take every necessary step to protect yourself. Franchising is a specialised area of law so to cover all the bases, your lawyer needs to know what they’re looking for.
Here are three reasons why it’s worth consulting a specialist franchise lawyer.
1. Franchise agreements are very different to ordinary business contracts
Franchise agreements and disclosure documents can be hundreds of pages long and are substantially different to regular business contracts. Among all of the paragraphs and jargon is important information about the business’s history, costs, ownership, intellectual property and your obligations – you need to know these things before you can make an informed decision. A specialised lawyer knows what is standard and what’s not. They can help you spot concerning obligations that you won’t be able to meet.
2. Some things can be negotiated and some things can’t
Having someone on your side that knows the intricacies of franchising and can give you advice on what is standard and what’s negotiable, is invaluable. Not only can they tell you whether a particular detail is appropriate, such as the cost of royalty fees, but they can renegotiate to get a better, more reasonable deal.
3. You’ll get comprehensive written recommendations
A diligent franchise lawyer will provide you with written legal advice. They can also help you create a legally binding document and ensure everything is executed correctly. Unlike a general lawyer, specialised franchise lawyers can recommend contract alterations and use their skills and expertise to recommend and redraft any special conditions within the franchise agreement. This means they can help you make a better commercial deal.
Ultimately, hiring a specialist franchise lawyer may cost more than your local lawyer, but in return you get a detailed view of your franchise agreement and obligations, as well asrecommendations to get the best deal possible. That peace of mind and security is money well spent and will help you start your business ownership journey on a positive note.
Want to find out about the benefits of buying a franchise? Read the Top 10 reasons to buy a franchise.
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