Unique issues arise for an on-going or growing franchise.
As time goes on, an existing franchisor may evolve, changing its structure, the way it sells franchises, or the terms of its franchise agreements. It may decide to sell franchises in new states. It may want to obtain or renew financing. Or, it may negotiate deals with vendors or suppliers.
At the same time, it will continue dealing with its existing franchisees. The franchisor will need to monitor existing franchisees to ensure compliance with the system and the franchise agreement. It may need to oversee or participate in transfers by franchisees. And, hopefully, it will want to renew most franchise agreements as they reach the end of their terms.
All the while, the franchisor will continue its own internal business operations, handling issues related to contracts, corporate matters, employment, real estate, negotiations, disputes, etc.
Our lawyers understand and have experience in these types of dealings. We provide the following types of services to established franchisors:
- Regularly review, modify and update your FDD, in compliance with the FTC-Rule
- Ensure compliance with the law of each particular registration state
- Review and modify franchise agreements and related agreements
- Negotiate and contract with approved vendors and suppliers
- Negotiate and document deals with new prospective franchisees
- Monitor and deal with existing franchisees
- Oversee and assist in transfers by existing franchisees
- Negotiate and complete renewals
- Provide ongoing legal support in all business areas (i.e. serving as general counsel in business transactions, employment issues, litigation (and litigation avoidance), etc.)