Trusted Franchisor Attorneys
Our law firm specializes in franchising and we excel at providing complete legal solutions throughout the business life cycle. We support franchisors from launch to maturity by providing the knowledge and support they need navigate the complex legal landscape of franchising and maintain franchise relationships. We handle the nuances of the law while entrepreneurs focus on growing their business.
we provide the legal support franchisors need to succeed in Franchising
Solution Oriented and Committed to Business Growth
Franchising is an accelerated growth strategy that presents a unique opportunity for successful business owners who are willing to share their systems and processes with other entrepreneurs. Expanding with company owned locations is capital intensive because growing at scale requires extensive upfront cost along with ongoing infrastructure and support. Many entrepreneurs simply don’t have the time or capital to open 100, 1000, or 10,000 locations across the United States.
Franchising presents the potential to grow at a rate and scale that often is not attainable through other growth strategies. Essentially, a company with a proven concept can expand their footprint by utilizing other eager entrepreneur’s time and capital. Franchise owners have skin in the game and they are motivated to succeed in a manner that is difficult to find when hiring a manager for company owned location.
So, how does a company start franchising? The short answer is that business leads and attorneys must work together to prepare the appropriate legal documents and ensure that the business systems and processes are well documented. This is an ongoing relationship and we work with franchisors from launch to maturity to ensure the business leads can focus on growing the business while the attorneys focus on compliance. Click here for the longer answer.
What does franchisor legal support entail?
As a franchise focused law firm, we tailor our legal support to meet each clients needs and budget expectations. This will often depend on the size of the client’s operations and their demand for legal support. Franchising requires constant legal support as each prospect is disclosed, franchise agreements are negotiated, and the disclosure document is updated. All franchisors need a certain level of support which will increase as a franchisor grows in size. Regardless of the size of your business, we can deliver prompt and reliable legal support.
The Initial Setup
The first step to franchising is to develop a franchise disclosure document. We consult with prospective clients and quote a fixed fee once we learn more about their business. Next, we work with the franchisor business leads to understand the franchise system and craft an disclosure document tailored to their business. After the FDD is issued by us, we take the steps required to ensure a franchisor can do business in each state where they would like to offer franchises as laws vary by state. Throughout this process we educate our clients on the legal aspects of franchising. We specialize in franchise law, but we are more than a franchise law firm. When we say we are the law department for your business, we mean it.
In the United States, a franchise opportunity can only be sold through the disclosure of a Franchise Disclosure Document (often referred to as the “FDD”). Federal franchise law requires all FDD’s to contain 23 specific areas of disclosure covering thousands of issues. These disclosures are designed to help buyers make informed decisions about the franchise opportunity. In addition to federal requirements, franchises are also regulated on the state level in many states. Some require formal review of the FDD before a franchisor can offer any opportunity in their state. A failure to comply can result in severe consequences.
Ongoing Legal Suport
The relationship starts with our attorneys drafting the FDD, but succeeding in franchising requires ongoing legal support. Our law firm excels in supporting franchisors because our attorneys have the experience needed to address franchise specific issues and general business issues through transactional support and litigation support. Our firm often represents franchisors as outside general counsel on a fixed monthly fee. This means our clients often request analysis, advice, and consultation on dozens of topics. Our fixed fee approach means franchisors can budget for legal expenses and focus on business growth and mitigate risk as they make decisions guided by sound legal advice.
Client Feedback
What makes a Franchise a "Franchise"?
Franchising occurs anytime the following three elements are present:
Right to Operate
The buyer will obtain the right to operate a business that is identified or associated with the seller’s trademark, or to offer, sell, or distribute goods, services, or commodities that are identified or associated with the franchisor’s trademark
Degree of control
The seller will exert or has authority to exert a significant degree of control over the buyer’s method of operation, or provide significant assistance in the buyer’s method of operation
Exchange of money
As a condition of obtaining or commencing operation of the business, the buyer makes a required payment or commits to make a required payment to the seller or its affiliate. In Virginia, this includes any direct or indirect payment of at least $500.
If these three elements are present, its a franchise! This is true regardless of what the parties call the arrangement and regardless of rather the agreement is written or oral. Its important to work with trained legal counsel to understand what satisfies these elements and ensure you either franchise correct way or do not accidentally franchise. The consequences of illegal franchising can be severe.
From Launch to Maturity
Launch
We manage the formation of your business by establishing the entity, preparing operating documents, and providing corporate guidance.
Protecting IP
We help you protect your brand by analyzing whether your brand name is likely to obtain a trademark and provide legal support throughout the trademark process.
HR Support
We help you develop employee best practices, draft form offer letters, and help you develop incentive programs for key employees such as option grants and shadow stock programs.
Franchising
We walk you through the process, prepare the FDD, register the FDD, and help you maintain compliance. We guide you towards long-term success through compliance and best practices.
Maturity
We provide ongoing legal support as you managing the challenges of growing operations. In good times and bad, we are your trusted legal advisors. We are the law department for your business.
Navigating The franchise process
Formation
We work hard to understand our Client’s goals and objectives and navigate them through the development of a franchised business. Franchising is regulated on the federal and state level. Understanding the nuances of franchise law and compliance shouldn’t consume all of your time. We will help you prepare for franchising and develop the franchise disclosure document (“FDD”).
Registration
Certain states require registration of the franchise disclosure document (“FDD”) before allowing a franchisor to do business in their state. We will explain the process and cost of registration in each state. You decide where to register. We take care of the rest.
Compliance
There are twenty-three separate areas of disclosure required by franchise laws and almost half of the country regulates franchise opportunities to some degree. The FDD must be updated annually and on the occurrence of certain events. Its a lot to keep track of. Let us focus on the legal work while you focus on the business. Compliance is our priority.
contracts
Our contracts are used to conduct billions of dollars in business each year. The primary contract found in every FDD is the franchise agreement. This contract contains the rights and obligations of the franchisor and franchisee. We listen to your goals and objectives to ensure contracts best protect your business. The typical franchise agreement is for a ten-year term and its important to get things right the first time.
Relations
Avoiding and resolving disputes is essential to the success of any business. In franchising, success requires happy and successful franchisees. Unfortunately, your franchise opportunity isn’t right for everyone. When disputes arise, we work with business leads to manage and address them in a productive way.
Support
We offer a full platform of support for your franchising needs. We can manage the disclosure of the FDD to ensure compliance, prepare franchise agreements, and manage all required reports and renewal filings. We manage franchise relations, advice on best practices, and help avoid disputes. The level of support your business needs is up to you; however, we typically provide complete support to franchisors on a fair monthly fixed-fee.
Why Choose Our Law Firm?
World Class Legal
You shouldn't need to speak latin or have a law degree to read a contract. We draft disclosures and contracts to protect your interests without the legalese.
Accessible
We are accessible by text, call, e-mail, video-conference, or in person in Hampton Roads, Virginia. We make ourselves available for next-day appointments.
Responsive
We respond to our clients within hours, not days. We value open and honest communication. You can count on us to pickup when you call.
Complete Solution
Decades of experience have lead to vast legal knowledge across various practice areas. We provide knowledge to enable clients to best accomplish any task.
