Entrepreneurs who have tasted success often look into the next steps in further improving the way of their business. The primary way of expanding operations is through franchising, which has gained popularity in the market over recent years.
Franchising your business model can be ultimately beneficial as it gives the chance for better talent that would further work to build your brand, without you having to mind everything in terms of expansion capital because franchisees pay for their own outlets under your chain. This, in turn, is a relatively smaller growth risk that can generate much return for both you and your franchise.
Of course, challenges come with venturing into franchising a business model. These can be very complicated when franchising is done wrong. You can research on your own, but nothing beats having a franchise legal team to help you out. Here are some reasons why:
They can help you protect your business
Hiring a lawyer who specialises in franchise over a generalist lawyer will also give you an advantage due to the familiarity with precedents and commonalities among the sector. An inexperienced franchise lawyer might miss some things that could be warning signs to a bad agreement.
A legal team can help you review hundreds of pages of the franchise disclosure document. Any single clause in it can make a big difference to how your business can go, and this is why getting aware intimately of this documentation is important. Aside from this, a franchise consultant can also give advice about brand and asset protection, personal guarantees, tax law, privacy law, consumer law, employment law, and business structure. Most of these may be difficult to understand without legal representation and advice.
They know what you need
An experienced franchise consultant will ensure you get your desired franchise structure which includes specifications on branding and fees. A franchise lawyer helps you get and develop the heart and the ultimate need for any franchising venture: the franchise agreement. Franchising can be very stern and technical, always sticking to rules and regulations that both parties have set up in the beginning.
For a franchise to be valid, it has to follow the Franchising Code of Conduct. Having experts by your side can help you demand the obligations and restrictions to your franchisee that are ethical and that abide by the ever-changing franchising laws. These are essential for a successful expansion of a brand.
They give you a fighting chance in disagreements
Franchising is a legal matter, and it is not impossible for legal conflicts to arise. If things go south, and a riff comes between the franchisor and the franchisee, a legal team can help you tidy things up.
When one party wrongs another or thinks they are wronged, the signed legal papers such as the franchise disclosure document and the franchise agreement are key factors to get things straight. Observance of the Franchising Code of Conduct is also necessary on both sides. This shows that you need a team of franchise experts understands the technicalities and can make impeccable contracts and documents at the start of the franchise venture to avoid disagreements or gain an advantage when there is one.
If you think you are ready for franchising and want to learn more, contact your local legal team today.