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West Palm Beach Business & Personal Injury Attorney
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Why Do You Need a Franchise Lawyer in Florida?


The legal aspect of the franchisor-franchisee relationship can be complicated, which is why franchisors and franchisees can benefit from having a West Palm Beach franchise law lawyer by their side.

Whether you are considering purchasing a franchise to become a franchisee or creating a franchise to become a franchisor, you need a West Palm Beach franchise law attorney to learn about Florida’s laws and regulations for franchise operations.

But why do you need a franchise lawyer if the process of creating a franchise seems quite straightforward? All you need is to package your successful business into a “box” and offer it to potential franchisees who would be able to replicate your success, right? Not necessarily.

Creating or buying a franchise requires you to enter into a business agreement. You must understand what the agreement is about.

Do You Need a Franchise Attorney? 

Depending on whether you are a franchisee or a franchisor, the reasons why you need a lawyer will vary. As a potential franchisor, you must address many legal issues related to turning your business into a franchise.

Among many other things, your attorney will prepare all the paperwork required by Florida law to create, operate, and license a franchise. As a potential franchisee, you need to understand that investing your money into a franchise is a risky and legally complex task.

Things a potential franchisee in Florida must consider are:

  • Why you are buying this particular business
  • Whether this is the right franchise to buy
  • The amount of money to invest
  • The estimated revenue from the franchise
  • The franchisor’s background
  • The accuracy of the franchisor’s claims to prevent material misrepresentation
  • The franchisor’s experience in running a franchise
  • The financial situation of the parent company
  • The type and degree of support the franchisor is offering

A Franchise Law Attorney Will Thoroughly Review the FDD and FA 

Florida law requires franchisors to provide their potential investors (franchisees) with the Franchise Disclosure Document (FDD) within 14 days of signing an agreement or accepting any money. In addition, they must present the Franchise Agreement (FA). The potential franchisee must thoroughly review both the FDD and FA with the help of a West Palm Beach franchise law attorney.

The Federal Trade Commission (FTC) and state law require franchisors to provide the FDD to ensure that their franchisees are fully informed about the business and its parent company. The FA, meanwhile, lists the rights and responsibilities of the franchisor and the franchisee.

The Franchise Agreement grants the franchisee the legal right to operate the business for a specified period. Basically, the FA is the formal contract between the franchisor and the franchisee that creates the franchise relationship.

The FDD and FA can contain hundreds of pages written in legalese. Any documents relating to franchise law are often confusingly drafted, which is why both the franchisee and the franchisor must hire a lawyer to go through every page of every document and agreement. Do not sign anything unless you fully understand what it says and the legal ramifications of the given contract.

Consult with our West Palm Beach franchise law attorneys at Pike & Lustig, LLP, prior to creating a franchise or investing your money in a franchise business. Call at 561-291-8298 to make sure that you fully understand franchise law.


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