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Forum Newbie
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Last Login: 10/12/2008 8:41:28 PM
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| I'm in the final stages of researching a Snip-its franchise and I'm awaiting pre-qualification loan approval. I'm wondering if I need to find an attorney and cpa before signing franchise agreement.
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Forum Newbie
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Last Login: 9/26/2008 2:24:58 PM
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| As a franchise advisor, I help prospective franchisees through the sometimes daunting process of validation. I always strongly recommend that my clients meet with an attorney and CPA. It's best to find a franchise attorney, as they are more familiar with the disclosure documents and can evaluate them more easily. If you're using a franchise advisor, they should be able to recommend a good attorney. Cost to review the FDD can run from $750 - $1500, but if you're serious it's well worth the money to be sure you understand what you're getting in to. Feel free to contact me and best of luck! Diana Hutcherson 877-264-7619 or diana@franchise-pro.com
Diana Hutcherson
Franchise-Pro
303-751-2788
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Forum Newbie
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Last Login: 2/24/2009 5:08:31 PM
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As a franchise attorney, it may come as no surprise that I view this as a rhetorical question. I would offer the following:- A franchise agreement is quite possibly the most important contract a prospective franchisee will ever sign (long-term commitment, significant investment of money, etc.). An experienced franchise attorney can help: (i) explain your rights and obligations under the franchise agreement, (ii) identify "red flags" or atypical provisions for your consideration, (iii)suggest revisions that will clarify existing language or shift risk back to the franchisor, and, if necessary, (iv) advocate and negotiate on your behalf with the franchisor.
- I have never heard of a franchisor, advisor, or consultant discouraging a prospective franchisee from seeking legal advice before signing a franchise agreement. I would be suspicious of anyone who did.
- An experienced franchise attorney can efficiently review and analyze an FDD without causing unreasonably delay or interference in the process. A primary reason for the required 14-day waiting period is to provide prospective franchisees an opportunity to carefully review the FDD and get assistance.
- The more a prospective franchisee approaches the process in a business-like fashion, then all else equal, the more informed their decisions will be and the better their chances of long-term success.
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Forum Newbie
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Last Login: 3/22/2009 10:30:00 PM
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Forum Newbie
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Last Login: 5/11/2009 10:30:10 AM
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