Law

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.

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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 Agreement signed in Waterloo

Four Types of Franchise Agreements

Opening a new franchise is an exciting opportunity, but it can also be a bit overwhelming if you don’t have a lot of experience. Whether you’re opening a single store or a new chain, your franchise agreement helps determine the guidelines for the relationship between franchisee and franchisor.

A franchise lawyer can help you understand your franchise agreement, but it’s important to understand what type of agreement you are entering into so that you can choose the right lawyer for the job. If you are considering opening a new franchise, here are the four types of franchise agreements that you may come across:

Single Unit Franchises

Single unit franchise agreements are the most simple and common form of agreement, and the name pretty much says it all. These agreements allow a franchisee to open a single franchise location, and they are a great way to learn about the franchise system before considering additional units.

Multi-Unit Franchises

Multi-unit franchise agreements grant the franchisee permission to open multiple units. They outline the number of units the franchisee is allowed to open over a specific period of time. If franchisee owners have multiple units, there’s a good chance that the franchise organization is stable and doing well.

Area Development Franchises

Area development franchise agreements are similar to multi-unit agreements in that they allow the franchisees to open a specified number of units. The only difference is that this type of agreement limits development to a specific area.

Master Franchise Agreements

Finally, master franchise agreements are just like area development and multi-unit agreements, but with a bit more authority. These agreements allow franchisees to open a specified number of units in a given area, but also give them the power to sell units and usually receives royalties from franchisees.

Before signing a contract agreement, make sure you talk to a professional franchise lawyer. Contact Law Works in Waterloo for expert business and legal advice on all types of franchise agreements.

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 agreement lawyer in Guelph.

Is a Franchise Business The Right Fit For You?

At one point or another, many of us have flirted with the idea of starting our own business. The complicated process can stop many dead in their tracks while they wrestle with such tough decisions; what type of business should I create? How am I going to run it? Do I need a partner? Most default to starting a brand new idea, but there is a strong argument to be made about entering a franchise agreement.

Opening a franchise is a unique way of starting a company as it allows individuals to build their own business while having the recognition of an established entity behind them. For some this is an ideal scenario, however it is essential to be well informed and patient when structuring the franchise agreement. The agreement is meant to be a mutually beneficial arrangement, therefore, you must ensure there aren’t any clauses that could lead to future conflict or disputes.

While franchises are often beneficial in most regards, the aspect of partnering with a well-known company can just as quickly deter potential franchisee suitors. That is because it can be very intimidating when it comes time to negotiate the franchise agreement. Being prepared by entrusting the negotiation process to a franchise lawyer can rid yourself of any anxiety and instill confidence that your best interests are their primary concern.

A healthy relationship is vital for success, and should benefit both parties to ensure that neither is treated unfairly. As such, a well-structured franchise agreement in the early stages will lead to future benefit by preserving this bond. If you’re interested in finding out if a franchised business is right for you, contact Law Works in Guelph to speak with a franchise lawyer today.

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.

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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.

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3 Tips to Selecting the Right Lawyer for You

There are many steps and processes involved in legal cases and trying to navigate them, on top of daily responsibilities can be overwhelming. Making sure you have the best representative for you and your needs is of key importance. When it comes to selecting a lawyer consider these 3 steps to help make your decision:

Select a Lawyer with Particular Expertise

Selecting a representative who has expertise in the area your case involves will be the best support system because they understand your needs and can best represent you and your case.

Research Potential Lawyers

Your local bar association will provide you some insight, as you will be able to find public records of complaints and disciplinary actions taken. There are also online sites that provide reviews but make sure to check more than one in case of bias.

Check their Website and Arrange Consultations

A lawyer’s or law firm’s website will have specific information on the type of law the attorney practices, as well as reference their years of practice and any achievements. Once you have selected a few top ones, set up consultations to get a feel for their style and take notes to refer back to.

These 3 steps are a brief guideline in how to begin the process of selecting a lawyer but the key is selecting a lawyer with expertise in your particular case. If you require a franchise lawyer in Mississauga than Law Works an expert in Franchise law is the firm for you.