franchise

3 Things To Consider Before Signing Your Franchise Agreement

Franchises offer a balance between the freedom of starting your own business and the stability of an established brand. Unlike starting a business from scratch, purchasing a franchise offers access to resources, capital, brand identity, and other extremely helpful assets that can help your business thrive. However, there are a few things you should consider before signing your franchise agreement and opening your new franchise:

How much will it cost?

Starting a business can be extremely expensive, which is why franchising can be such an attractive opportunity. While the costs are still substantial, you may be able to get funding from the franchisor or use the brand’s reputation to help obtain a loan from a bank. Before signing your franchise agreement, make sure to consider exactly how much it’s going to cost and how you’re going to finance this new venture.

Is it right for you?

Franchising exists in a number of industries, not just fast food. As a potential business owner, determine whether your skill set and passion align with the needs and goals of the franchise. While it’s possible to run a successful franchise with no prior experience, being passionate or knowledgeable about the industry before signing your franchise agreement can be extremely helpful.

How much time can you invest?

Opening a franchise is just like opening your own business. It requires a lot of time and commitment to ensure everything runs smoothly. If you are already employed or have other commitments, consider if you’ll have enough time to dedicate to opening your new franchise.

Advertisements

3 Red Flags to Watch Out For When Buying a Franchise

Franchising is a great way to run your own business with a fraction of the risk of starting from scratch. You’ll have access to an existing brand and consumer base, an established supply chain, and more. However, there are times where opening a new franchise is not a good idea. However, if the franchise is consistently losing sales, taking advantage of franchisees, or there are any other noticeable issues, you may want to proceed with caution and consult a franchise lawyer before jumping in. Here are a few red flags to watch out for:

Supplier and Vendors

Some franchises require franchisees to purchase supplies from a single source. While this may be the most efficient and convenient option in some cases, it may also be a red flag. Mandatory suppliers may drive prices up and quality down, which could prevent your new business from reaching its full potential. Consult a franchise lawyer to get an expert opinion on the matter before making a final decision.

How Many Years in Business

Consider how long the franchise has been in business. While it’s possible for newer franchises to succeed, the possibility is much higher for brands that have already been around for decades. Speak with a franchise lawyer to find out what they think about your potential purchase.

Geographic Area

Does the franchise currently have experience in the area you are planning on opening your franchise? For example, the brand may be popular on the west coast, but may not work out on the east coast due to increased competition or other established options that could limit your growth.

Franchise lawyer with franchisee business contract

When Should You Hire a Franchise Lawyer?

Franchises can be an extremely effective way to grow an existing operation. Regardless of the industry, franchising offers a number of benefits to both franchisee and franchisor. Whether it’s an efficient supply chain, established brand identity, or a network of meaningful connections, franchises provide the opportunity to start a new business with a fraction of the risk.

While franchise agreements generally cover important terms and provisions that dictate the relationship between franchisee and franchisor, there are still a handful of issues that may arise. Whether you’re the franchisee or franchisor, franchise lawyers can help make your business relationship both effective and fair, even in the face of controversy. Here’s when you should consider hiring a franchise lawyer:

Before signing your franchise agreement

Franchise agreements provide a framework for how a new franchise will operate, complete with payment details, confidentiality agreements, and more. They are an essential part of any successful franchise, making it important that you understand the terms before you sign. A franchise lawyer can help you decipher the legal jargon to ensure that you understand what you’re getting yourself into.

When there’s a business dispute

If there’s ever an issue between franchisee and franchisor, it’s not advised to try to handle it on your own. Franchise lawyers can help mediate and smooth out any disputes so that all parties are satisfied with the resolution. Regardless of the nature of your dispute, you should consider calling a franchise lawyer before jumping to any conclusions.

Franchise lawyer on retainer

As a franchisee or franchisor, it never hurts to have a franchise lawyer on retainer. Doing so can help you run your business within all legal boundaries to ensure you don’t get yourself into any trouble. Experienced franchise lawyers can also help you streamline your operation, providing a greater potential for growth.

If you’re looking for an expert team of professional lawyers, contact Law Works. They’re one of Canada’s select few boutique law firms with expertise in franchise and business disputes. Law Works represents international and Canadian franchisors, master franchisees, multi-unit franchisees and local single-unit franchisees.

Franchise Lawyers in Guelph

What Do Franchise Lawyers Do?

Opening a franchise is a great way to gain experience as a business owner, and it comes with less risk than opening your own business. However, there is a lot that goes into opening a franchise, making it important to hire a franchise lawyer, especially if this is your first time. Opening a franchise can be expensive so you might be wary about the cost of a lawyer, and whether or not it is worth it. However, franchise lawyers are essential for any franchisee owner.  Here is what they can do for you:

Review & Advise

Opening a franchise requires a lot of paperwork, contracts, and legal jargon. If you are planning on opening a franchise, it can be a lot of information to digest, especially without the help of a franchise lawyer. Your lawyer will be able to review all documents and contracts, providing you with a better understanding of the relationship you are entering into.

Negotiate Contracts

As we mentioned above, franchising involves a lot of contracts and legal documents that influence the relationship between franchisee and franchisor. A franchise lawyer can help negotiate the terms and contracts so that the agreement is fair and beneficial to both parties involved.

Help with Business Operations

A franchise lawyer can help you determine the best way to operate your franchise once it’s up and running. From legal guidelines to suppliers, they have experience on both sides of the relationship. They can help you determine the most effective and profitable ways to run your business while ensuring that your operation isn’t violating any laws or regulations.

If you’re interested in purchasing a franchise, get the help you deserve. Contact Law Works in Guelph, they can help you solve disputes easily with a team of professional franchise lawyers.  

How Franchise Lawyers Can Help with Franchise Agreements

Opening a franchise can be a fulfilling and exciting opportunity if you play your cards right. Often times, new franchise owners come across a lot of legal jargon and uncertainty in franchise agreements, which can be intimidating or even a bit overwhelming. Your franchise agreement dictates the relationship between franchisee and franchisor, so it’s important to make sure both parties are treated fairly. It never hurts to get some outside help if you are considering a franchise agreement, here are a few reasons why:

They can offer advice on how to choose a business entity

Should your business be a Limited Liability Corporation (LLC)? Maybe it should be a Subchapter S? Or perhaps you should file for a C-Corporation? If you don’t know the difference, you can set yourself up for future complications. It is paramount to choose the right business entity for your new franchise. It determines your legal rights and liabilities as a business owner, and also influences how your business is taxed. A franchise lawyer can offer useful suggestions on how to set up your your new franchise business.

They can help with legal compliance

Franchise lawyers possess relevant knowledge to ensure your franchise agreement complies with local, national, and international law. Whether it’s a small municipal law or a major legal principal, franchise lawyers can help you navigate your franchise agreement to ensure its fair for both parties.

Franchise lawyers keep things simple

Franchising, especially franchise agreements, can be complicated. Experienced franchise lawyers can help you cut through complications by explaining how certain terms or documentation work together, clarify legal boundaries, and negotiate a desirable agreement between franchisee and franchisor. Contact Law Works, Canada’s leading business law firm for professional franchising help. 

franchise business lawyer Ontario.

What To Look For When hiring a Franchise Lawyer

Franchise lawyers can make or break a franchise, since they can influence your franchise agreement and how your business operates. From clarifying legal jargon to helping you navigate legal boundaries or disputes, franchise lawyers are essential for both franchisee and franchisor. With so many lawyers around, it can be tough to find one that works for your situation. To give you a head start, here are three important factors to consider when hiring a franchise lawyer:

Franchisor vs. Franchisee Experience

Most good franchise lawyers have experience on the franchisor side of the equation, so it’s ideal to find someone who meets this criteria even if you are a franchisee. If your franchise lawyer does the majority of their work for franchisees, their approach might be skewed towards the franchisee. Either way, you should ask whether or not they draft franchise disclosure documents (FDDs), because if not, they’re likely unqualified.

Flat Fee vs. Hourly

Many franchise lawyers will work on a flat-fee basis, since they have enough experience to know how long the process takes. Flat rate franchise lawyers can be beneficial since the overall cost is predictable, often allowing for financing over a few months. However, they do have a downside; in some rare cases, it might be more expensive than if you were to pay an hourly rate.

Industry & Business Knowledge

While industry specific knowledge is not always necessary, in some cases the knowledge of relevant regulations can be very helpful. There are some cases/industries where industry specific knowledge is vital; medical franchising, health-care franchising, and dental franchising are a few of many. Try to ensure your franchise lawyer has experience in the industry you are getting into. If you’re looking for professional expertise in the franchise business, contact Law Works for a free consultation. 

Waterloo franchise lawyers

Why You Need a Franchise Lawyer

In the unique business landscape of franchising, maintaining a healthy relationship between franchisee and franchisor can be difficult. It’s essential to have a franchise lawyer whose expertise can ensure you’re taken care of.  When first entering an agreement, a franchise lawyer will review it meticulously to certify the terms and remove any falsifications that can lead to future disputes. Once a relationship has been established, you can rest assured that your best interest will be at the forefront when any issue arises.

There are clear benefits to franchising a business, but the goal is to have both parties working together in a harmonious relationship. A franchise lawyer has the specialized understanding to enact the most productive and efficient process for conflict resolution, contract amendments or any other issue that comes about. The intricacies of labour laws like overtime and employer liability can be unclear at times, but a franchise lawyer will be well informed and prepared for any situation that you’re faced with.

Whether it’s your first or your fifth, entering a franchise agreement with a well established company can be overwhelming. A franchise lawyer knows what’s best for you and will be able to help you throughout the process to answer any questions you have, make recommendations for your benefit, and stand by your side, all to establish a fair agreement. If you’re looking for advice or assistance it never hurts to speak with a franchise lawyer. Contact Law Works in Waterloo, a premiere franchise law firm that can assist you with all your franchise needs.

Franchise Agreement: Arbitration Clauses

Every franchise is governed by a contract between the licensor; the franchisor; a licensee; and the franchisee. These contracts are called Franchise Agreements. With franchise businesses accounting for 40% of all retail sales in Canada through 78,000 franchise units, mediation and arbitration clauses are becoming increasingly prevalent. While these franchise agreements may offer significant advantages in some disputes, they may be inappropriate or even increase the complexity, time and cost in other scenarios. Here’s what you need to know about arbitration to determine if it is an appropriate franchise agreement for your business.

Franchise arbitration is one of many clauses that can provide advantages during in-court litigation proceedings. An arbitration clause is a stipulation in your franchise agreement that requires the parties to resolve their disputes through arbitration, outside of court. The outcome of a dispute is decided by one or more persons (“arbitrators”, “arbiters” or “arbitral tribunal”), which renders the “arbitral award”. An arbitral award is legally binding on both sides and enforceable in the courts. A significant advantage of arbitration is the choice of arbitrator and the opportunity to specify that the arbitrator must be experienced in arbitrating franchise disputes.

However, disputes over the arbitration clause or agreement, especially over the enforceability of certain provisions or the choice of arbitrator, can prove costly and time consuming. In these cases, the complications often negate the expected advantages of these franchise agreements, since they are designed to be a quick resolution of a dispute. Law Works Waterloo specializes in franchise law and offers a variety of solutions to franchise disputes.

franchise mediation in Guelph.

Franchise Agreements: Mediation Clauses

Franchise agreements are the ticket to a fair and healthy relationship between franchisee and franchisor. Without a proper franchise agreement, either party may be treated unfairly if a dispute arises. There are a variety of stipulations that can be included in franchise agreements to ensure disputes are resolved in an efficient and fair manner. Mediation and arbitration are two effective tactics that repeatedly provide amicable solutions. While these clauses often provide substantial benefits over litigation of disputes, there are situations where they may be inappropriate or counterproductive, increasing the complexity, time and cost of diffusing the situation. As a franchisee, it’s up to you to stay informed about the fine print of your contract, which includes understanding the different tactics involves in dispute resolution. To give you a head start, here is what you need to know about mediation.

Including mediation clauses in franchise agreements can provide a wide range of benefits to both parties, and can be very effective during the early stages of disputes to encourage a timely and cost-effective resolution. Particularly, mediation offers the greatest advantages for disputes between franchisors and existing franchisees when there is a mutual interest in preserving the franchise relationship.

With that being said, mediation is most effective when it is voluntary, and agreed to by both parties. In the absence of a mediation clause in franchise agreements, parties may agree to mediate without having to comply with a specific aspect of the franchise agreement. Additionally, a mediation clause can act as an obstacle to a franchisor who would rather proceed immediately to court instead of considering mediation. If you have any other questions, Law Works Guelph specializes in franchise law and can help guide you through the intricacies of your franchise agreements to help achieve a resolution.

franchise dispute mississauga

3 Steps in Franchise Disputes

Day-to-day business responsibilities can be complex. Ensuring your business operates effectively and turns a profit can be a constant source of stress. The expectations for operation, double if your business is a franchise. Not only must you operate in a manner that meets your own business goals, the business must follow a certain set of criteria set out by the franchisor. The franchisor and franchisee relationship can be mutually beneficial however, there also is a potential for conflict. Franchise dispute can be an unfortunate circumstance, in franchise relationships and if you find yourself facing one there are a few steps to keep in mind:

Notify other party of the dispute

You must issue a formal notice of dispute, to the other part involved, wherein you explain what the dispute is about, what your preferred resolution is, and what other steps you believe the other party should take.

Attempt Resolution

Trying to resolve the matter is the preferred method but if a resolution is not possible either party has the right to request franchise mediation.

Attend Mediation

Both parties, in person, must attend mediation or a selected representative may attend on a party’s behalf. The goal is to resolve the dispute but ensure you are willing and able to attend because if you do not, you can be fined.

If you are facing a franchise dispute in Mississauga and require professional advice, guidance, and service then contact Law Works your expert in franchise litigation, arbitration and insolvencies.