If you are, have you spoken to an experienced franchise lawyer?

Franchising has proven to be a preferred business model for a wide variety of industries.

Successful franchises provide a considerable number of jobs and generate impressive revenue numbers.

It is critical that a prospective franchisee obtain professional advice and guidance prior to completing the process of buying the franchise of choice. Typical advisors can include a franchise consultant, an accountant and a financial planning specialist.

A key service provider is also a business lawyer familiar with the legal requirements which apply to franchising generally and to the purchase and sale of individual franchises.

With the advice and assistance of a franchise lawyer, it is often possible to change some provisions of the franchisor’s standard franchise agreement. More importantly, and even if the franchisor refuses any requested amendments, the franchise lawyer will be able to explain the significance and provisions of, and review with the client the contents of, not only the mandatory disclosure document delivered by the franchisor, but the franchise agreement, the lease of the location (if applicable) and any other related materials as well.

The franchise lawyer will also look after the incorporation and organization of the corporation through which the franchisee will own the franchise and will consult with the accountant to make sure the corporation has the appropriate share structure and that any tax-related legal strategy recommended by the accountant is implemented.

The trail to becoming a franchisee is complicated to follow. An experienced franchise lawyer should be one of the guides accompanying you on the journey.

Please do not hesitate to contact me for more information on how I can assist with the proposed purchase of your franchise.

John S. Grant, Q.C

Senior Legal Advisor – Business Law Group

Disclaimer: This article is provided as an information resource. This article should not be relied upon to make decisions and is not intended to replace advice from a qualified legal professional. In all cases, contact your legal professional for advice on any matter referenced in this document before making decisions. Any use of this document does not constitute a lawyer-client relationship. Please note that this information is current only to the date of posting. The law is constantly changing and always evolving.


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