1851

When deciding whether to invest in a franchise, it is crucial that prospective franchisees do everything in their power to protect themselves legally. By providing expert advice and guidance, franchise attorneys serve as important partners for people interested in becoming franchisees.

1851 Franchise connected with franchise attorneys Fredric Cohen, partner at <a href="http://www.chengcohen.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=4-tips-for-engaging-a-franchise-lawyer-2705137" target="_blank" rel="nofollow">Cheng Cohen LLC</a>, and Carl Zwisler, attorney at <a href="https://www.gpmlaw.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=4-tips-for-engaging-a-franchise-lawyer-2705137" target="_blank" rel="nofollow">Grey Plant Mooty</a>, for tips about when, why and how prospective franchisees should engage franchise attorneys.

1. Engage a franchise attorney as early as possible.

When it comes to timing, Cohen and Zwisler agree that prospective franchisees should consult a franchise attorney after identifying a franchise they are interested in owning.

&ldquo;Practically speaking, people should start looking for a franchise attorney when they find a franchise that they think is right for them,&rdquo; Zwisler said. &ldquo;Hire one before you commit to or sign anything, including agreements and leases.&rdquo;

Cohen believes it is important for people to engage an attorney before obtaining a Franchise Disclosure Document (FDD), which is a form all prospective franchise owners are required by law to receive before buying a franchise. The FDD covers everything the Federal Trade Commission believes prospects need to know about a franchisor, including critical provisions franchisees are legally required to uphold.

&ldquo;The disclosure document can be daunting to some, but it is essential that the prospective franchisee not only read and understand its contents, but also that he or she grasp the significance of the disclosures,&rdquo; Cohen said. &ldquo;Unless the franchisee is highly sophisticated and experienced in franchising, franchise counsel should be engaged to explain the disclosures and their significance, which may not be readily apparent.&rdquo;

2. Hire an experienced attorney who specializes in franchise law.

There are thousands of attorneys in the United States, but only a handful of them specialize in franchising. Therefore, it is important to engage a competent attorney who has taken the time to learn all the intricacies of franchise law. As experts, they know what to look for when reviewing FDDs and can help prospective franchisees navigate ever-changing franchise laws, including ones that are state-specific.

&ldquo;Attorneys who represent franchisees full-time, as well as those who represent franchisors, have seen a lot of issues and can anticipate what could go wrong,&rdquo; Zwisler said. &ldquo;It is worth the additional money to retain someone who has experience working with multiple franchisees and franchisors.&rdquo;

3. Seek counsel for all matters related to the franchise purchase.

Along with help reviewing FDDs, prospective franchisees usually require additional legal advice before investing in a franchise.

&ldquo;If the opportunity involves a brick and mortar operation, a lease will likely need to be negotiated and reviewed,&rdquo; Cohen said. &ldquo;If the franchise agreement calls for a personal guaranty, it will be important to consider the impact of a guaranty on the individual&rsquo;s estate planning and personal exposure. If the business requires licensing, counsel can help secure the license. If the business is in a highly regulated industry, counsel can help the prospective franchisee understand and comply with the controlling regulations. The issues the prospective franchisee will need to deal with will vary from situation to situation.&rdquo;

According to Zwisler, franchise attorneys can also help prospective franchisees determine if a franchise is the right fit for them. Beyond explaining legal documents, a good franchise attorney can offer an educated opinion about the feasibility of a new venture.

&ldquo;Understanding the business model and how a franchise operates compared with competing franchise concepts is very helpful for people trying to decide if they should become a franchisee and which franchise is best for them,&rdquo; Zwisler said.

Additionally, franchise attorneys can help people decide how their franchises should be set up, which will determine their legal rights as business owners and how they are taxed. They can explain the differences between a sole proprietorship, a limited or general partnership, a limited liability company (LLC), and S and C corporations.

4. Consult a franchise attorney after the purchase.

Franchise attorneys can continue offering counsel after the initial purchase. Whether it is a dispute with a franchisor, financial problems, or negotiations with contractors, suppliers and staff, franchise attorneys are able to provide legal advice to franchisees in a variety of situations.

&ldquo;The two most common times franchise attorneys are consulted by franchisees is when someone wants to get into a business and when someone wants to get out of a business,&rdquo; Zwisler said. &ldquo;If you decide you don&rsquo;t want to be a franchisee anymore, you have to consider how to sell the business, the return on your investment, and what limitations, if any, the franchise agreement imposes on when, where, and how you can sell your franchise. Of course, when a franchisee has a relationship problem with a franchisor that he can&rsquo;t work out, a franchise lawyer can sometimes aid in the resolution of the problem.&rdquo;

&nbsp;

&nbsp;

4 Tips for Engaging a Franchise Lawyer

1851 Franchise

Hiring a franchise attorney is a critical step for people considering becoming franchisees

4-tips-for-engaging-a-franchise-lawyer

Paris Baguette

Photo of array of Paris Baguette pastries

Paris Baguette Redefines Morning Routines With Fresh Breakfast and Premium Coffee Strategy

paris-baguette-breakfast-strategy-growth

TruBlue Home Service Ally

TruBlue’s Home Maintenance Plans: Peace of Mind for Homeowners

trublues-home-maintenance-plans-peace-of-mind-for-homeowners

Caring Transitions

Caring Transitions Targets Peoria, Illinois, for Franchise Growth

caring-transitions-targets-peoria-illinois-for-franchise-growth

Caring Transitions Celebrates a Strong Start to 2025 With 19 New Franchise Sales and Momentum-Building Training Events

caring-transitions-celebrates-a-strong-start-to-2025-with-19-new-franchise-sales-and-momentum-building-training-events

Right at Home

Right at Home 30th Anniversary in Home Care with Right at Home Logo

Celebrating 30 Years of Excellence and Future Innovations in Home Care

celebrating-30-years-of-excellence-and-future-innovations-in-home-care

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight graphic with photo of Amy Lepke and family and Papa Murphy's logo

After 14 Years as a Stay-At-Home Mom, Amy Lepke Returned to Papa Murphy’s — This Time as an Owner

papa-murphys-franchise-amy-lepke

Franchisee Spotlight with Micki Waters and Papa Murphy's Logo

Work Mom: How Micki Waters Became a Mother Figure to Her Entire Papa Murphy’s Team

work-mom-how-micki-waters-became-a-mother-figure-to-her-entire-papa-murphys-team

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

4 Tips for Engaging a Franchise Lawyer

MORE STORIES LIKE THIS