My experience representing both franchisees and franchisors brings an understanding of both sides of the franchise equation to the table. Because of the size disparity between the typical franchisor and average franchisee, there are significant federal and state regulations that govern the franchise model. It is important for the franchisee to understand their rights under those regulations and for the franchisor to fully comply with those same regulations. The buyer of a franchise operation needs an attorney who will make a careful review of the franchise agreement and make sure that it fully complies with the state and federal regulations, that you understand all of your obligations under the agreement, and to negotiate (where possible) with the franchisor to ensure the best deal for their client. On the other hand, if you are considering starting a franchise operation, I can get you launched on your new venture.
What is a franchisor?
The franchisor is the company that has developed a system for running a specific business, including trademarks, products, and operating model, that allows a third party to operate a business using their system in exchange for an agreed-upon fee and (usually) a percentage of the profits from the business.
What is a franchisee?
The franchisee is the individual business or person that enters into an agreement with the franchisor to operate a business using the franchisor’s business model and system.
If I enter into a franchise agreement with a franchisor, what exactly am I buying?
Basically, when you enter into a franchise agreement as the franchisee, you are buying the right to operate the business under the franchisor’s system. You get the benefit of their expertise, their system itself and the market position of the franchisor. You do not own any rights to the trademarks, the trade secrets, or any of the good will that is generated by the businessTAB