Indeed, franchising falls within the context of business management. The world where business persons breathe in is different from the sphere where lawyers revolve in. Yet, in many various situations, these two worlds may coincide, making one in vain without the other. One concrete example is when business persons turned to franchising.
Some may have a firm belief that they can go on with the franchising business without a lawyer on their side. Some experienced business men and women added that it would just be a waste of time and money to consult and retain the lawyer’s services as they are successful in taking care of their trade so far. Others may say that their money is not enough to afford the services of a lawyer. There are so many other defenses, so many preconceived notions we can hear.
But the truth of the matter is, franchisors and franchisees need the services of a good lawyer, not later when something wrong and unpleasant happens at some point in the franchise relationship, but even before deciding to enter into such kind of relationship.
Some of the many good reasons to have a lawyer on your side are exposed.
1. Lawyers can help protect the assets and avoid liabilities of either the franchisor or the franchisee from the very start by the exercise of due diligence in investigating, researching and reviewing the details of the franchise deal.
2. Lawyers can help you to understand the terms and conditions of the franchise agreement, franchise disclosure document, operating manuals, and other legal and financial documents.
3. They have the eye to look for possibilities of negotiation, to at least balance the scale between the franchisor and the franchisee.
4. In terms of payment of fees, renewal or termination of the franchise relationship, contracts with third parties like the suppliers, job contractors, and lessees, if any, lawyers can assist you in making a good deal.
5. Lawyers can do the processes of company set-up, licenses and registration.
6. Lawyers can help avoid or resolve dispute between franchisor and franchisee during the continuance of the relationship.
Franchising is a railroad process and it is not as easy as purchasing a cake. There are so many steps to take before ending up a successful franchisor or franchise holder. Each step requires you to have the guidance and expertise of a lawyer. It is not only when you are presented with the franchise agreement that you need the specialty of a lawyer but from the very beginning of the way. Lawyers do know the legal implications of what kind of world you are about to enter.