Are you considering buying a franchise? If this year has pushed you to finally take the leap into entrepreneurship, then buying a franchise might be a great option for you.
When you opt to purchase a franchise, you eliminate the time and risk associated with starting from scratch. This includes developing your own brand, product or service offerings, pricing structure, marketing strategy and operating methods.
However, it is important to note that even with a franchise, success will not happen overnight. So how can you prepare to become a franchisee? Garcia & Milas is here to help.
Whether you are considering your own start-up venture or entering into a franchise relationship, we can provide you with the guidance that will set you and your business up for success.
Franchise Disclosure Document (FDD)
Find out what you need to know before you buy a franchise and how to navigate the Franchise Disclosure Document (FDD).
What should I know if I’m considering buying a franchise?
If you are thinking about becoming a franchisee, there are a few things you should consider before jumping into an agreement. When beginning the process to buy a franchise, the first item you will receive is a Franchise Disclosure Document.
What is a Franchise Disclosure Document?
A Franchise Disclosure Document, also known as an FDD is a legal document that a franchisor must disclose to a prospective franchisee before a franchise may be sold.
An FDD contains 23 sections of disclosed information about the franchisor, the franchise opportunity being sold, fees charged by the franchisor, the legal relationship between the franchisor and franchisee, and the terms of the franchise purchase.
Why is a Franchise Disclosure Document Important?
A Franchise Disclosure Document is important because it allows the potential franchisee to make an informed decision about the purchase of the franchise.
An FDD helps franchisees understand the franchise system they are buying into, as well as the potential benefits and of a franchise relationship.
If you are considering the purchase of a franchise, we highly recommend that you seek legal representation. A Franchise Attorney will help you review the FDD and understand the terms of the franchise agreement.
Federal and state law requires the disclosure of an FDD to allow franchisees to make informed decisions about their potential franchise purchase.
What is an FDD review?
An FDD review allows you to evaluate whether a franchisor is dependable, stable, and has a good track-record. An FDD includes information about the franchise system, initial investment costs, your obligations, and the franchisor’s support offers.
At Garcia & Milas Law Firm, we provide a thorough legal review of the FDD, allowing us to discuss and advise you on:
In addition, this includes the following Franchise Documentation:
- Protection Against Same-Brand Competition
- Termination and Renewal Rights
- The Franchisor’s Obligations
- Your Obligations
- Sale and Transfer Rights and Restrictions
- Non-Competition Provisions
- Dispute Resolution Procedures
Additionally, if we deem that it’s necessary, we will suggest and help negotiate changes to the franchise agreement on your behalf.
Before purchasing a franchise, allow yourself the benefit and opportunity of understanding your Franchise Disclosure Document. Garcia & Milas Law Firm has attorneys that are available to help you navigate this process with you.
Contact us to set up your consultation with one of our Franchise Attorneys today.
By Jaime Paoletti, Garcia & Milas, P.C.
Jaime Paoletti
Jaime Paoletti is an attorney at Garcia & Milas, P.C. who represents franchisors and franchisees nationwide, as well as start-up companies and wholesale distributors. Attorney Paoletti’s experience with the franchise model from both the franchisor and franchisee perspective provides her with valuable knowledge and insight that she applies to the benefit of her clients.
This publication is for general information purposes only and is not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.
Schedule a Consultation with a Franchise Attorney
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Top Franchise Attorney in New Haven CT
Garcia & Milas Law Firm located in New Haven, Connecticut represents franchisors and franchisees nationwide, as well as start-up companies and wholesale distributors. Our experience with the franchise model from both the franchisor and franchisee perspective provides us with valuable knowledge and insight that we apply to the benefit of our clients.
We help our clients evaluate whether a franchise system is a beneficial way to develop their business, assist them in structuring franchise business programs and entities, prepare and register FDDs, and advise on legal compliance matters.
Our firm provides a full range of services in all aspects of developing, registering, offering, restructuring, and expanding franchisor businesses. To learn more about the services our business and franchise attorneys offer, visit our Franchise Law page.
