| When purchasing
a franchise, the best approach is to assemble a team of knowledgeable
advisors. This applies whether you are planning to purchase
an existing franchise location or planning to open a new franchise
operation. Your team of advisors ordinarily should at least
include a franchise attorney and certified public accountant
(CPA). Your team may also consist of a franchise broker or franchise
consultant, financial advisor or others.
A franchise broker can do a survey of your interests and
qualifications and help you find a franchise opportunity that
is right for you. Your CPA will review the financial and tax
aspects of the proposed franchise purchase. A financial advisor
can provide advice and options related to financial planning
for your immediate needs and for your future (including your
future plans for selling the franchise or passing it on to
your heirs).
Your franchise attorney will help you review your Franchise
Disclosure Document and Franchise Agreement before you sign.
This service will help you understand your rights and obligations
as a franchisee, which can reduce the chances of future relationship
problems with the franchisor. If needed and desired, your
franchise attorney can help you negotiate with the franchisor
to make favorable changes to the franchise agreement. These
negotiations are more likely to be successful if you and your
attorney can articulate to the franchisor how the changes
benefit the entire franchise system as a whole.
You will also need help from your attorney to create a business
entity (such as a corporation or an LLC) through which to
operate your franchise business; and possibly to prepare a
Buy-Sell Agreement between the owners of the franchise to
provide for future contingencies such as the death, disability,
or voluntary withdrawal of an owner. If you are purchasing
an existing franchise business, then your lawyer can prepare
or review the business purchase contract you will enter into
with the existing franchise owner.
Contact the franchise attorney at Peak Law Group now for
more information about buying a franchise! Peak Law Group's
franchise attorney is based in Portland, Oregon and serves
franchisors and franchisees nationwide.
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