When you franchise your business, you’re expanding your brand while protecting your intellectual property. But before you take the plunge, it’s crucial to have a franchise attorney on your side.
In addition to safeguarding against Federal Trade Commission (FTC) violations, working with an experienced franchise attorney is imperative to ensure compliance with various regulatory agencies and laws governing franchising. Regulatory requirements can vary at the federal and state levels, making it essential to have legal guidance that is well-versed in the intricacies of these regulations. One FTC violation can be as much as $11,000. Say you have 100 franchisees. One mistake in your contract could cost around $1,100,000, if not more, in addition to hundreds of thousands in legal fees.
Franchise attorneys play a critical role in assisting you with the preparation and submission of necessary documents to regulatory bodies. This may include registering your franchise with state agencies as required by state franchise laws. Failing to comply with these regulations can lead to severe penalties and legal consequences.
Moreover, franchise attorneys can provide valuable insights into industry-specific laws that may impact your franchise model. They can help you navigate through zoning laws, health and safety regulations, and other legal aspects that vary from one jurisdiction to another.
Drafting franchise agreements and franchise disclosure documents (FDD) requires a deep understanding of both legal requirements and industry best practices. Your franchise attorney will work to ensure that these documents are not only legally sound but also protect your interests and provide clarity to franchisees. This is crucial in establishing a transparent and mutually beneficial relationship between franchisors and franchisees.
By partnering with Forward’s franchise lawyers, you benefit from their extensive experience in guiding clients through the multifaceted landscape of franchising. Whether it’s advising on compliance with federal and state regulations or helping you structure robust franchise agreements, our legal team is dedicated to mitigating risks and fostering the growth and success of your franchise network.