Franchising
The decision to franchise your business represents years of hard work in building your brand and the acknowledgment from a potential franchisee that your brand is a valuable asset. With decades of experience in the field the attorneys at Petock & Petock, LLC are ready to help you take your business to the next step.
Franchise Agreements:
The franchise agreement is the document that will define the franchisor/franchisee relationship. It is crucial from the standpoint of both the franchisor and the franchisee that this document clearly identify the rights and obligations of the parties. Failure of franchisees to operate the business in accordance with quality standards, for example, can not only hurt the brand from a marketing standpoint but can also have a disastrous legal effect on your trademark or service mark. A solid franchise agreement will ensure that the franchisor retains sufficient quality control over the franchisee’s business not only to maintain the brand but also to maintain the validity of the marks that represent the brand. Further, franchise agreements commonly contain provisions related to franchise fees and royalties, training and ongoing support of the franchisee, advertising requirements, term and termination provisions, territory and, of course, intellectual property rights. There is no one form of agreement that will suit the needs of all franchises- a franchise agreement should be drafted with the unique needs of the particular business in mind.
Uniform Franchise Offering Circular:
Franchising is regulated by both federal and state law. Franchisors are required by the Federal Trade Commission to prepare a Uniform Franchise Offering Circular (UFOC) which must be presented to a potential franchisee. In general the UFOC is intended to give potential franchisees sufficient information to make an educated decision respecting their decision to invest in a franchise. The goal in franchising should not just be to franchise your business but should be to franchise your business to the best possible candidate. A professionally prepared UFOC is key to attracting the best franchisees. Petock & Petock is ready to help you franchise your business by helping with the preparation of a UFOC that will not only ensure your franchising efforts are compliant with law but also serve to promote your business.
Franchisees:
What many franchisees do not realize is that virtually every word in a franchise agreement is negotiable. Often simple changes to an agreement can mean the difference between success and failure. Franchisees should be aware of language in agreements such as “No Royalties” or other provisions that seem to good to be true because they usually are. It is highly advisable that before a would-be franchisee makes what may be the biggest investment of their life they have the franchise agreement and the underlying franchised business reviewed by professionals experienced with franchises including by an accountant and an experienced attorney. Petock & Petock is ready to meet with you to discuss your new business venture.
