Many carwash owners did not go through a corporate entity to start their business. However, for those who are considering taking this route, hiring a franchise attorney can be an essential step to ensure no details are overlooked during the process. According to smallbiztrends.com, three main reasons point to the importance of consulting the experts.
1. Franchise attorneys are experts – These specialists have studied the complexities of franchising and franchise law, states the article. Many of these attorneys began their careers as corporate lawyers, advising companies on corporate and trademark issues.
2. Franchise attorneys are familiar with franchise contracts – They read and write franchise contracts all the time, notes the article. This experience has taught franchise lawyers what to look for in a franchise agreement. They also keep up with the latest franchise laws, which can vary from state to state. “Regulations States” have the most comprehensive regulation of franchisees. They are:
- New York
- North Dakota
- Rhode Island
- South Dakota
3. Franchise attorneys know the Franchise Disclosure Document (FDD) front and back – The FDD contains 23 specific items about the franchisor, including litigation history, restrictions on sources of products and services, and obligations of the franchisee and franchisor, said the article. Prospective franchisees receive this document before they purchase the franchise.
Hiring a franchise attorney can protect your interests and your dream of owning a business. According to the article, a good franchise attorney “will offer his or opinion on the feasibility of your potential new venture.”
Click here to read the entire article, including resources on how to find a franchise attorney.