Franchise Attorney- Prepare Well Defined Franchise Agreement
A franchiser needs to evaluate and understand a number of things before he allows franchisees to use the rights and trademarks of the business he owns
. The franchisee is usually charged by the franchiser for allowing him to use the rights and the franchise name and do business. This fee is called the franchise fee. In addition to the franchise fees, ongoing franchise royalty fee is also collected by the franchisee from the franchiser. The franchise agreements include details about these fees and also about the business. The same can be developed with the help of a franchise attorney and is signed by both parties before finalizing the business deal.
After planning to franchise a business, several factors need to be studied carefully and evaluated. The franchise laws of the country should be analyzed carefully. This helps in understanding the qualifications required for franchising and also a detailed insight of the business.
Patent should be obtained from the government and the brand should be trademarked. This prevents others from copying the product and helps in obtaining a unique name in the market. If there are several similar products and brands in the market, the business value is sure to drop and the franchiser may find it hard to find franchisees who are interested to invest in his business.
A Franchise Business Plan should be created before franchising a business. The same should describe the goals and objectives of the business to be franchised, along with its financial setup. A Franchise Manual which elaborates the operating procedures should be maintained for better understanding of the franchisee. In order to learn about the franchise law and gain knowledge about franchising a business, a reputed franchise consultancy firm can be approached. They provide guidance to their clients regarding all the aspects of a business. Understanding that a lawyer is necessary for legal dealings that take place between the franchiser and franchisee, the firm also provides the clients with franchise attorney directory from which they can opt for a qualified lawyer.
The legality of a franchise varies from place to place. The franchising agreements of a particular state describes the rules and legality of business of that area. Its framework varies depending upon a number of factors like state jurisdiction, franchise system, franchisee, franchiser and the arbitrator. It is mandatory that the franchiser as well as the franchisee should be made aware and clear about the agreements mentioned in the legal papers.