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Franchise Law

Franchises are part of American lore and success story. From fast food franchises to auto dealerships and others, franchising helps local experts sell national or international products by buying in to a larger network and selling well-known goods. However, owning and operating a franchise isn’t as easy as having a desire to do so. There are strict rules governing the establishment of a franchise by the franchisor (the organization or person allowing someone else to operate under their name with their company logo and trade secrets) and the franchisee (the person who is operating at a local level representing the brand). Our firm has handled everything from franchise creation to termination and can help you throughout every step of the process.


Franchise Registration


Franchise registration is mandated by the State of New York under the law. When doing so, a franchisee and franchisor must submit a variety of documents without which they will not be able to do business. This tedious work can be helped through the use of a franchise attorney who is well versed in all the requirements needed for these important documents. Additionally, a franchise attorney can help ensure all filing fees and subsequent renewal fees are paid on time so there is no danger of losing the franchise.


Franchise Disclosure Documents (FDD)


In New York and pursuant to the Federal Trade Commission (FTC), Franchise Disclosure Documents are designed to give the state perspective into all financial elements of the franchise and help determine whether the franchisor complies with the law. These documents, which are substantive and include issues such as criminal history, financial status, former and current litigation, and other crucial disclosures are key to the granting of the franchise. Sometimes, businesspeople attempt to draft these documents and inadvertently make an error causing needless harm and delay. Let our firm help you by putting our experienced attorneys who have assisted others with Franchise Disclosure Documents to work so that you can get your business going.


Franchise Agreement


Besides the laws governing franchises, franchisors and franchisees are governed by the franchise agreement which many times is detailed and sets out how and under what circumstances a franchisee must comply with a franchisor’s demands. Usually, this is fairly straightforward agreement governing choice of color in restaurant, dealership, or other place in addition to how and when to run marketing promotions, sales, or other things. However, franchise agreements can also be treacherous for a franchisee who does not read it carefully as it may entitle the franchisor to the lion’s share of profits or other benefits that are associated with the franchise. Our franchise lawyers can help ensure that your rights are protected, and you understand your obligations under the agreement.


Franchise Termination


Sometimes, franchises may not work out due to a variety of factors. Terminating a franchise either from the perspective of the franchisor, the franchisee, or by mutual agreement may be the best way forward. Our attorneys can help ensure that termination goes smoothly either through handing off an existing franchise to another franchisee or by winding down the franchise to the satisfaction of all parties. No matter what your franchise termination issue may be, we can provide counsel that will see you through.

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