Franchises
THINKING OF STARTING A FRANCHISE BUSINESS? START BY TALKING TO US.
Establishing a new franchise business has its own unique benefits and challenges.
Your main benefit is having a product or service that is already well known to the public so all other things equal, attracting customers should be easier and ramping up your business should be faster. The benefit comes at a cost of course, usually taking the form of initial franchise fees and ongoing royalties you have to pay, along with a lesser degree of control than an independent business. Another key consideration for you to consider is that your business has a finite time line, just like a commercial lease. At the end of the franchise’s term, the business comes to an end unless the franchisor and you have agreed to extend the term.
We can help you in a number of ways:
reviewing the franchisor’s disclosure documentation to learn more about them, advising you on the franchisor’s stability, track record, etc. – the “value” of their brand;- reviewing the franchise agreement and educating you on the key elements (eg. ongoing costs, territorial rights, rights and obligations, etc.) so you can better determine the viability of the intended business;
- negotiating the key terms to the franchise agreement (where possible) to best position you for success. The stronger the brand, the less flexible the franchisor tends to be;
- negotiating the key terms of the other legal documentation such as the lease/sublease for example; and
- assisting in completing the purchase of the franchise in an orderly manner.
Legal fees are based on time spent which can vary significantly from matter to matter and depending on the scope of services our clients request. Give us a call and we will provide you with a rough outline depending on the scope of your needs.