Run, Don’t Walk Can you walk away from buying the perfect franchise business for you, if the franchise agreement has one awful, horrible clause? Ok, if there’s one, there are likely more. When I started my law practice, franchise agreements seemed pretty balanced. You would usually find franchisor’s approval rights were softened by the qualifier […]
Buying A Franchise? Do These Things First
Franchise agreements are not fair contracts. Once training is done and the business opens, franchise agreements shift the entire burden of the franchise business to the franchisee. Taking the right steps before signing that franchise agreement is critical, not just for success but for your financial survival. Critical Steps to Buying a […]
Is The FDD A Contract?
“FDD” stands for Franchise Disclosure Document. The franchise regulators think that this is a plain English term for “prospectus”. Webster defines a prospectus as a preliminary printed statement that describes an enterprise (such as a business or publication) and that is distributed to prospective buyers, investors, or participants. If you thinking of buying a franchise, then you […]
The Franchise Buying Season: Do You Really Need an Attorney?
Why not just save a little money? The Internet is a tremendous source of information. A lot is written about franchises and franchising. Unfortunately, I am still waiting for the next gen to produce infallible Truth or Lies software. In the meantime, it is all about Truth or Dare. You can find a franchise agreement for […]
Sometimes You Should Just Say No
… because franchise agreements can look just like credit card agreements. I started reviewing and writing franchise agreements, even before I moved to Texas in 1989. When I first got here, franchise agreements seemed pretty balanced to me. It was standard practice to use phrases like “[franchisor] shall not unreasonably withhold its consent…”. Nowadays the […]
