TRADEMARK FILING - The first step to a franchise system is filing your trademark portfolio. One of the 3 requirements to become a "franchise" is that you have a trademark. We will ensure that your trademarks and servicemarks are filed properly to give you the maximum protection of your brand.
THE FDD - All Franchisors are required by the Federal Trade Commission to provide the prospective franchisee with a very detailed document called the Franchise Disclosure Document ("FDD"). This document contains all the details of the franchise and what you will require the franchisee's to do to become and continue as a franchisee. However, if done properly it can be a great sales tool that will assist you in launching a very profitable system brand.
STATE COMPLIANCE - There are many states that have their own requirements above the FDD federal requirement. Some states even require registering with them prior to marketing or selling in their state. We will ensure that you are in state compliance to avoid costly fines and penalties.
THE FRANCHISE AGREEMENT - This Agreement is the actual contract between you and the franchisee. This document is written by the franchisor's attorney because you usually want it to be very one sided. After all it needs to protect you and your other complying franchisee's from franchisee's are not not following your system. We can help you 1) determine exactly what the terms contained in most Agreements mean, 2) help you compare terms to other franchises in your industry 3) avoid illegal requirements and 4) create the best terms for your system.
1. UNDERSTANDING THE TERMS OF THE AGREEMENT - The Franchise Agreement is usually quite lengthy. It is imperative that you understand not only what the words mean, but what effect those terms will have on a working and growing system. This is the time for questions, such as what items or functions are you going to require?And do they really need to be required? What liability does it potentially create if I require it from the franchisee?
2. COMPARE INDUSTRY TERMS - Part of the startup process should be evaluating what terms and requirements are being offered by competing franchisors. This will ensure that your system is marketable. Areas we will evaluate include:
- Feasability studies
- Franchise format determination
- Manual preparations
- Master Franchisee and Area Development arrangements
3. AVOID ILLEGAL REQUIREMENTS - The Franchise Industry is also governed by the Federal law called the Sherman Act. This deals with pricing structures that fall under the Antitrust statutes. It is imparitive that your system not violate this Act.
4. CREATE THE BEST TERMS FOR YOUR SYSTEM - The final part of the startup process is deciding on the terms that will be best for your brand. We will assist you in determining what will be profitable, sustainable and yet will offer the franchisee room to grow in. The best franchises have happy and profitable franchisees. We will provide guidance on:
- Royalties and fees
- Confidentiality
- Reporting and Auditing procedures
- Master Franchisee and Area Development arrangements
- Non-competition and Transfer terms; and
- Renewal and Default terms.
OTHER BUSINESS MATTERS - There are many occassions when it is wise to have your own attorney. We can provide:
- Creation / revision of your business entity whether it be a corporation, limited liaiblity company, or limited partnership
- Creation or amendments to the ownership agreements
- Restructuring of Dealer or Distributor programs
- Review and negotiate leases
- Employee contracts and non-disclosure agreements
- Dispute Resolution measures
- Advise on other legal business issues
