FDD and Franchise Agreement Reviews
Franchising presents budding entrepreneurs with a unique opportunity to launch the businesses of their dreams. As with any business, though, there are challenges associated with franchising that can make purchasing a franchise seem like a daunting prospect. At Gouchev Law, we understand that New York franchise law can be confusing, and that’s why we’re here to guide you through the process.
Two of the most important documents you need to understand before you agree to buy or sell a franchise are the Franchise Disclosure Document (FDD) and the Franchise Agreement. Both are crucial to understanding your business obligations, and both can be quite long and complex. An experienced franchise attorney can help you review these documents to uncover any potential problems before commit to your new business.
What the FDD Covers
The FDD is intended to give those considering purchasing a franchise the information they need to understand the franchisor and make an informed decision. The Federal Trade Commission requires franchisors to provide the FDD to potential buyers at least 14 days before a sale.
The FDD includes several important pieces of information for potential franchisees to review, including background information about the franchisor, the relationship between the franchisor and the franchisee, the legal obligations of both parties, the costs associated with buying the franchise, and certain other financial information. In all, there’s detailed information on 23 different topics, and the document is typically lengthy – they can often reach into the hundreds of pages.
Our team appreciates that reviewing hundreds of pages of complicated legal disclosures is a highly burdensome task. That’s why we’re here to review it for you. Our attorneys are experts at franchise law, and will wade through the mountains of information to ensure that everything is in order.
Reviewing the Franchise Agreement
Unlike the FDD, which is aimed at disclosure, the Franchise Agreement is the binding document that legally governs the relationship and obligations between the franchisee and franchisor. This document is crucial to the success of your franchise, because it sets forth a clear and detailed understanding of your deal.
As with any business contract, Franchise Agreements need to be reviewed very closely. Every deal is unique, and every business has different goals. Reviewing the Franchise Agreement in detail is the only way to ensure that it accurately conveys the agreements reached by the parties.
Our team has extensive experience reviewing Franchise Agreements. We’ll look over every detail to make sure it fits with your goals, so you can rest assured that your interests are protected as you embark on your new venture.
Legal Guidance in Building Your Business
At The Gouchev Law Firm in New York, we work with businesses of all sizes, including start-ups and franchise businesses, across New York City and New Jersey, in meeting all types of transactional needs. Call us at (212) 537-9209 or schedule a free strategy session today to see what The Gouchev Law Firm can do for your business.
How we helped Eric
“Gouchev Law is an extraordinary business and trademark law firm. We feel so lucky to have found them. They overdelivered every time. There is more than enough complexity in negotiation with giant organizations, but their work product and personality made it feel effortless. Thanks!”
Eric Schleyer, JLine Productions Inc.
How can we help?
We know that understanding what legal documents and protections you need is not your jam. Relax: we’ve got you covered.
- Forming a New Entity for your Business
- Buying or Selling an Existing Franchised Location
- Trademark Registration
- Raising Capital
- State Registrations, Permits and Licenses
- Retail Commercial Lease Negotiations
- Negotiating a Restaurant Lease
- Independent contractor, supplier, employment, confidentiality and non-compete agreements
- Franchising Your Business
- Termination of a Franchise Agreement
- Private Equity Acquisitions of Franchise Systems
Building Your Franchise
Operating a franchise can be the best of both worlds: the independence and freedom to be your own boss and the name recognition of a national or regional brand. As a franchisee, you also have a number of unique legal challenges to face as you manage relationships with franchisors, customers, vendors, employees, and business partners. At Gouchev Law, we’ll help you navigate all the legal complexities of franchising and grow your business.
Franchising Your Business
For those entrepreneurs who are already building their business and looking to scale their business through franchising their model, our team will help you build your franchise empire. We will provide legal guidance to create franchisor/franchisee business agreements, protect and promote your franchise’s trademarks and other IP, comply with all applicable FTC and securities rules and regulations, find and optimize partnership and growth opportunities, and protect your interests in all franchise transactions.
Build Your Vision Today
Some clients are born great, some achieve greatness, and some have greatness thrust upon them. Whichever you are, we’re here to help you continue the greatness.
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