In the franchise business process, an entrepreneur can create a comprehensive business model, along with the trademarks, support systems, and processes that are relevant to a particular industry. They may then rely on the franchisees for capital investments in the business. While the franchisees assume the risk of the day to day business, they also obtain access to the brand name, well- developed systems and easy entry into an otherwise competitive market. Thus the franchise model is beneficial to both franchisors and franchisees.
To run a franchise business successfully, franchisees and franchisors need to abide by certain regulations. The legal requirements for this business can be complex at times and it is thus wise to take the help of professionals.
At Shah Grossi, we have the know-how and extensive experience of handling matters for both franchisees and franchisors. Below are our offered services in this practice area.
Our Services for Franchisors
For franchisors, it is important that their businesses are correctly represented by the franchisees. Hence, we assist our franchisor clients in drafting strong Franchise Disclosure Documents (FDD) that are compliant with the regulations in place (FTC regulations, NASAA standards, and other state registration rules). In addition to this, we also advise our clients on formulating effective strategies to establish their franchise systems.
Some of our areas of services for franchisors are as follows:
- Franchise feasibility evaluation
- Systems and strategy development of the franchise
- Franchise relations advise
- Franchise registration according to state and other laws
- Litigation, mediation, and arbitration of franchises
- Uniform Franchise Offering Circular (UFOC) development
Our Services for Franchisees
For franchisees, it is essential to maintain a good working relationship with the franchisors in order to build a successful business. At the same time, it is also important to abide by all the terms of the contract between the two parties. For this reason, we offer services pertaining to the review of the FDD agreements and counsel our clients accordingly.
Below is the list of services we offer franchisees:
- FDD review and counsel on waiver of rights found in FDD/ADA
- Negotiation of franchise terms and formation of the entity
- Termination of franchise agreements
- Collective bargaining and lease negotiations
- Repurchase negotiations
- Litigation and class action defense
- UFOC evaluation
Other Franchise Related Services
We offer mediation services in case of disputes to both franchisors and franchisees. We also provide drafting services for different types of agreements and counsel our clients on a host of franchise-related business issues. Here is a list of some other franchise-related services available:
- Drafting agreements like broker/finder’s agreements, co-branding contracts, dual and multi agreements.
- Ensuring due diligence and legal compliance with the applicable franchise laws
- Carrying out negotiations for supplies contracts and subfranchisor registrations.
- Helping to develop, operate, and expand franchises through improved marketing strategies, asset management, and distribution channels.
- Negotiating document financing, securing loans and implementing franchise finance programs
- Resolving any disputes through mediation, arbitration, or litigation
- Resolving employment relationship issues arising out of actions like termination
- Protecting and licensing intellectual properties, trademarks, and trade secrets
- Developing franchise agreements, licensing, and renewals
- Drafting of employment agreements and other related contracts.
How Can We Help You
This business model can be quite successful and have a significant positive financial impact when executed properly. However, the regulations implemented by the federal and state governments make the process of compliance complex. Shah Grossi can help you achieve business success while being compliant with the rules.
If you are a franchise owner, we can assist you in creating a model that is not only effective but also adheres to all legal guidelines. We work closely with our clients to develop business strategies that cater to their individual needs and are relevant to the market.
On the other hand, if you are a franchisee, then you may need legal counsel to help protect you from retaliation from your franchisor. We ensure that franchisors uphold the terms and conditions of the agreement and navigate the litigation process in the case of any disputes.
To learn more about our services or for a consultation, please contact us at (213) 927-6980.