Franchisors:

Franchising is a great way to expand your existing successful business. As a successful business owner you are probably very aware of the numerous factors that must be addressed in all expansions. Franchising is no exception. Franchising your business means duplicating your systems to provide potential franchisees with a solid opportunity to succeed. That involves many legal as well as non-legal factors such as – training programs, operations manuals, policy and procedure manuals, marketing programs, franchise disclosure documents, offering compliance and franchise registration among others.

The offer and sale of franchises requires compliance with both federal and state laws which set out the minimum requirements. Every franchisor must provide a prospective franchisee with a detailed disclosure document or uniform franchise offering circular (usually called a "UFOC") generally 10 business days prior to the sale of a franchise. Additionally, 13 states have registration requirements for franchise sales specific to that state and 18 states have "business opportunity" acts which may require additional compliance.

Novak Law Office, LLC offers a full range of consulting and transaction services for franchisors:

• Uniform Franchise Offering Circular creation, development and registration as required by various jurisdictions for master franchise, sub-franchise systems and area development sales
• Uniform Franchise Offering Circular reviews and renewals for existing franchisors
• Preparation of contract forms for use by franchisees
• Formation of business entities and advice on general business issues
• Preparation of nondisclosure, confidentiality and other types of agreements to protect the franchisor
• Assistance in developing operations manuals, policy manuals, marketing programs as well franchisor’s company structure
• Registration and protection of trademarks, copyrights and the brand
• Advice on structuring the franchise system to maintain a positive relationship with franchisees
• Litigation Support- consultation and mediation of franchise issues and liaison with local litigation counsel if necessary

Franchisees:

Novak Law Office, LLC can advise you on every aspect of acquiring a franchise. Novak Law Office, LLC will help you with the initial search for a good fit for you, assist in the franchise agreement negotiation, help in the formation of your business entity for the operation of the franchise and counsel you on any other phase of the franchise acquisition. Generally, a franchisor must supply you with a disclosure document or Uniform Franchise Offering Circular (usually called "UFOC") which sets out various mandated requirement at least 10 business days prior to your purchase of the franchise. There are numerous rules and guidelines the franchisor must abide by before it can offer and sell a franchise to you. We can counsel you through it. Before you buy a franchise you must have a franchise lawyer read the disclosure document. You should also have a CPA review the franchisor’s financial information before your purchase.

Novak Law Office, LLC offers a full range of consulting and transaction services for franchisees:

• Assistance with evaluation of franchise opportunities
• Review and explanation of the disclosure documents
• Negotiation of the franchise agreement and of the acquisition
• Preparation, review and negotiation of lease and any supply contracts
• Assistance with business plan development
• Formation of business entities and advice on general business issues
• Ongoing business legal support
• Guidance in franchisor-franchisee disputes

The information you obtain at this site is not, nor is it intended to be legal advice. You should consult an attorney for individual advice regarding your own situation.

Copyright © 2006 by Novak Law Office, LLC. All rights reserved. You may reproduce materials available at this site, for your own personal use and for non-commercial distribution. All copies must include this copyright statement.