The franchise attorneys at Press, Dozier & Hamelburg work closely with clients who are interested in buying a franchise, by offering sound counsel and support throughout the franchise agreement process.
While the franchise model will provide answers about getting started and running a business, it places many obligations upon the franchisee. Because this relationship establishes an added level of oversight by the franchisor and additional costs such as royalties, advertising and training fees, the federally mandated Franchise Disclosure Document (FDD) provided by the franchisor is one document you want to understand fully.
The FDD gives information about the history of the people involved in the franchise, what the franchisor says they will do for you, what you must do to remain in good standing, estimates as to how much it will cost to get started, and how much you will pay in royalties. Additionally, a number of states, including Maryland and Virginia, have their own franchise laws with which the franchisor's FDD must comply.
It is important to have someone who has reviewed numerous FDDs and can point out issues you should be aware of before you sign the multi-year franchise agreement. Mr. Dozier, who has years of experience as a commercial mediator, can also offer guidance in your negotiations. When choosing to go the franchise route, it is good to have a law firm in your corner that can provide one-stop service to put the whole franchise package together.