Common Legal Factors You Need to Consider While Buying a Franchise

Buying a franchise is quite similar to owning a new business with additional franchise legal requirements which are imposed by the franchisor. As franchising build a business relationship for long years, thus the foundation must have a clear understanding of the business model and legalities associated with the franchise program. However, understanding the legal terminologies and lawsuits associated with franchising can be intimidating for franchisees.

In such a scenario, you should you should take professional advice from an experienced franchise attorney who can make you understand all the information and details regarding franchise rules and regulations while purchasing a franchise. Well, franchising is governed by state and federal laws that need franchisors to provide prospective franchisees with all the legal information to build the franchisee-franchisor relationship.


Here are the two most common factors you need to consider while buying a franchise:


The Disclosure Agreement: The disclosure agreement is also known as the FDD through which the franchisee get all the information about the prospective franchise system and the agreement that need to sign while making an informed decision about the financial statements. A franchisor is not able to sell the franchise without presenting a disclosure document to the franchise as per the law. the disclosure document is comprised of the relevant details about the franchisor, the franchisor's bankruptcy and litigation history, territory rights, required investments, responsibilities, contact information and so on.


The Franchise Agreement: This is more specific than the FDD as it gives more clarity about the relationship between the franchisee and franchisor. The franchise agreement is completely legal and a written document that covers the complete information about the term (duration) of the franchise, rights, and obligations, procedures and standards, payments, termination, training, advertising as well as assistance. the franchise should review the franchise agreement closely and take the legal advice from the professional franchise attorney.


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Also, with JC Care, you can get the best franchise opportunity and earn huge revenues. JC Care provides you with complete technical support, global marketing support, outlet branding, sales collaterals, and training through which you can ensure the fastest ROI in your franchise business. For additional information, visit JC Care.

Mon, 24 Sep 2018