subject: Franchise Law Attorneys- A Boon For Franchises [print this page] Franchise is a concept, which is used by companies for selling their products and services through retail outlets maintained by third party vendors. Through various legal procedures, a third party vendor is authorized to use the trademark of the parent company to promote their business. An ideal alternative to building chain-stores, this concept benefits both the franchisee and franchisor from the liability and investments of building the chain or the new business.
Once a vendor made a decision to purchase a franchise, the next step is to sign a formal franchise agreement. There are two types of franchise agreements namely unit and multi-unit. This document binds both the franchisee as well as the franchisor as per written legal obligations. Hence, it becomes important to take an advise of an experienced attorney from a reputed business law firm, as many of these agreements tend to be in favor of the franchisor.
Carefully developed, the agreement outlines different aspects of the franchise law in detail. These include the degree of training and operational support to be provided, renewal rights, investment cost, territory and exclusivity selling or transferring of the franchise, advertising policies, franchisee termination issues and settlements of disputes. In other words, business law firms can help both the franchisee and the franchisor from the day of registration, till all legal documents are duly signed.
Using the knowledge and expertise of franchise attorneys, effective and foolproof documents that clearly state the nature of the franchisor-franchisee and the franchisee-consumer relationships, can be analyzed. These documents can protect the franchise business from competitors, suppliers and customers who raise complaints. The tricky points of franchise disclosures can only be correctly understood by highly qualified and experienced franchise law attorneys. Moreover, franchise attorneys ensure that the legal documents are in compliance with updated Government regulations.
It is well known that 33 countries across the world have extremely strict laws pertaining to franchises. As per the law, a franchisee needs to deposit two specific payments, soon after making the decision of investment to adopt the successful business model of the franchisor. Only after the successful payment of the initial installments, the franchisees are allowed to use the franchisor's name. Moreover, a franchise can use the name of the franchisor for a limited period, which could vary from three to forty years, depending on terms and conditions.
A franchise agreement can also be terminated, depending on the terms and the extent of compliance made between the franchisor and the franchisee. For example, if one starts selling random unapproved items at a copy store franchise, the franchisor may terminate the agreement legally.
