Florida franchise agreements must by law include certain key provisions, outline details about the franchise, and provide other necessary information. In this article, you will learn what you need to know about these requirements directly from an experienced Florida Franchise Lawyer.
What You Need to Know about Florida Franchise Agreements
Franchise agreements are legally binding contracts between franchisors and franchisees. Franchisors are holders of established businesses, and franchisees are parties who want to replicate those businesses to take advantage of the reputation of their brand. Florida franchise agreements are state legal documents, which essentially means that the state in which you execute them deals with and enforces them. Therefore, it is vital to work with an experienced franchise lawyer who knows the Florida franchise law well.
Generally, franchise agreements include information about the parties in the business relationship (franchisors and franchisees), recitals, disclosures, obligations, payments, rights, definitions, governing law, arbitration, and amendments, among many other things.
Before a franchisor and a franchisee can sign a franchise agreement in Florida, the parties must comply with what is known as the “Franchise Rule,” which establishes certain disclosure requirements franchisors must satisfy before signing a franchise agreement with a franchisee. The Federal Trade Commission regulates the specifics of these disclosures requirements. At least 14 days prior to signing, the franchisor must provide the franchisee with a Franchise Disclosure Document that adheres to federal standards.
After the parties sign the franchise agreement, there will be a 10-day period before the contract becomes a matter of Florida’s jurisdiction. Once this happens, Florida is tasked with enforcing the agreement.
What Florida Franchise Agreements Should Include
Although the content of a franchise agreement varies depending on the business, several items are common to most Florida franchise agreements, including:
- Franchise Disclosure Document
- State required disclosures
- Details regarding ownership
- Details regarding franchise fee payments
- Information about the parties
- Details regarding licenses
- Objectives of the parties
- Details about territory, trade name, start date, transfer issues, etc.
- Governing law
- Franchisee obligations
- Franchisee services
- Arbitration agreements
- Liability issues
Of course, a franchise agreement in Florida may contain many additional provisions, and because of the nature and volume of the content of most Florida franchise agreements, they tend to be complex documents. For this reason, it is crucial to work with a skilled and experienced Florida Franchise Lawyer when acquiring a franchise in the Sunshine State that is able to assist in the execution of the franchise agreement to avoid costly legal mistakes.
Work with an Experienced Florida Franchise Lawyer
I can guide you as you navigate the process of negotiating, reviewing, and signing franchise agreements in the State of Florida and deal other aspects of Florida franchise and business laws. This area of law can become astonishingly complicated astonishingly quickly, and the last thing you want when trying to purchase a franchise and negotiating and developing the contract is to be overwhelmed with unfamiliar terms and concepts.
I will help you 1) understand the nuances of your franchise agreement and 2) execute a bulletproof contract. In addition, if you are considering buying a franchise but are not sure whether it is the right move for you, I can help you make the right decision. Based on your needs, circumstances, and goals, I will help you choose the best route. If you are looking to start the business of your dreams, I can help you make sure it does not turn into a nightmare in the future.