FRANCHISOR COMPLIANCE & TRAINING
Franchising your company is complex. There are statutes and regulations that must be followed. At Bundy & Fichter PLLC, founder Howard Bundy brings more than 30 years of experience in franchise law. In addition to representing franchisors and franchisees, he has been involved in the legislative and regulatory processes. He understands — and makes sure — that you comply with all regulatory procedures. He is able to train you and your staff to get the job done right.
What Is Required?
The Federal Trade Commission requires presale disclosure in all states. In addition, several states require registration of the franchise before you can offer or sell. A number of other states require notice filings. At Bundy & Fichter PLLC, we will guide you through the disclosure and registration process, including informing you about:
The franchise disclosure document — What needs to be disclosed?
The limits on advertising
Marketing your franchise on your website and elsewhere
When you can start talking to people about your plans to sell a franchise
How long it will take before you can start selling franchises
If you are in the process of franchising your company, it is important that you keep adequate records and maintain a detailed journal listing all prospective franchisees. We will help you develop the tools you need for franchise compliance.
Do You Need A Franchise Attorney?
It is imperative that you have a franchise attorney who has experience representing franchisors. Do not trust a non-attorney “consultant” to sell you a franchising package. If they are not lawyers, they cannot advise you of the legal implications and potential liabilities that are inherent in every franchise agreement and franchise relationship. Having a qualified and experienced franchise lawyer is the only way to truly protect yourself and your business.
Beware Of Unintended Franchises
If you are talking about or considering letting someone else do business under your brand and helping them with operations in exchange for a little bit of money, be very aware that what you are considering may well be a franchise. You may call it a “license” or a “joint venture” or something else, but if it has the three elements of a franchise, it is a franchise. We find that many attorneys do not even understand this and sometimes place their clients at risk by drafting documents that violate the franchise laws. If you are considering a transaction where someone else will be conducting a similar business using your trade name or brand, you should consult with an experienced franchise attorney before you enter into any kind of agreement. The adverse consequences of a mistake could be substantially greater than any amount of money your unintended franchisee will ever pay you.