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What does a Franchising Lawyer do for Franchisees?

Posted on 11 June 2014
If the franchisee is entering into a new franchise arrangement the circumstances of the arrangement will dictate what services the franchise lawyer is required to provide.

Existing Business

If the franchisee is purchasing an existing franchise business then the lawyer will need to:

1.            Provide a review of the franchise agreement and disclosure document to the franchisee.  This advice will outline any issues with the documents and provide advice about the contents of the documents;

2.            Provide advice in relation to the enquiries the franchisee should be making in the decision making process;

3.            Undertake any negotiations with the franchisor;

4.            As the purchase is of a business it will be necessary to review the business sale contract, insert any necessary special conditions relating to the sale of a franchise business and act in the purchase which will include undertaking due diligence enquiries and all things usual in the purchase of a business;

5.            Review and advise in relation to a lease for the premises;

6.            Liaise with the landlord in relation to a new lease or an assignment of the current lease;

7.            Arrange for the execution of the franchise agreement and the lease; and

8.            Settle the business sale.

New Business

If the franchisee is entering into a franchise agreement for a greenfield site or a new site the process is similar except that a business sale contract is not necessary.

General Business

The franchisee may also require advice and services about business structuring and general commercial and business law.

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