While franchise businesses have a higher success rate than standard start-up companies, several complexities affect the relationship between franchisors and franchisees in Florida. In such circumstances, it is impossible to downplay the guidance of an expert franchise attorney. 

In this article, you will find the key reasons to hire a franchise attorney in Florida. 

Why Do You Need a Franchise Attorney in Florida  – In-Depth Review 

Franchisor’s Disclose Duties vs. Franchisee’s Due Diligence 

US law requires franchisors in all states to provide prospective franchisees with a Franchise Disclosure Document (FDD). This legal document details how the business relationship will be, including factors like: 

  • Background information about the franchise 
  • Information about the franchise’s affiliates, parent companies, and predecessors  
  • All relevant regulations to the franchise’s industry  
  • Intellectual property rights (e.g., trademarks) 
  • Technical and operational aspects 
  • Any history associated with bankruptcy or litigation  
  • The franchisee’s duties, including franchise fees, royalties, and all due fees 
  • The estimated costs to establish the franchise  

On the other side, the franchisee must conduct due diligence to have a full view of the elements involved in the transaction, including a comparison of the benefits and drawbacks of purchasing that specific franchise. 

While most contract negotiations can be settled with relative ease, a franchise agreement is complex and hard to settle, especially when a franchisor is constantly pushing for one-sided guarantees.  

In either case, it is imperative to consult with an expert legal advisor to navigate the whole process and ensure the transaction will be profitable for both sides involved.  

Drafting a Solid Franchise Agreement 

The cornerstone of the business relationship between a franchisor and a franchisee, the franchise agreement outlines each party’s contractual obligations, the terms and conditions of the deal, and how should potential disputes be solved in the future. The document must: 

  • Identify the franchisor and the franchisee  
  • Establish the area where the new franchise will operate 
  • Determine the franchisee’s minimum performance requirements  
  • Define the size of the territory for operations  
  • Establish guarantees (ideally, for both sides)  
  • Disclosing any restrictive covenants (e.g., non-disclosure agreements, etc.)  
  • Establish the right of renewal  

The Federal Trade Commission (FTC) and the state of Florida have a long list of regulations to guarantee full legal compliance in franchise transactions, which makes this type of company heavily regulated. 

Additionally, the document must include only clear language, as omissions, errors, or vague terms can result in stressful litigations. 

A seasoned franchise attorney in Florida can help by assessing each party’s legal obligations and meticulously drafting a proper franchise agreement. 

If the franchise agreement was already signed but the relationship between the parties has deteriorated significantly, it is urgent to seek guidance from a franchise lawyer in Florida.  

Ultimately, the earlier you work with a Florida franchise attorney, the better. Depending on the severity of the case, a zealot lawyer can represent you in court and protect your interests during litigation 

Waste no Time with Uncertainty – Immediately Contact Attorney Romy B. Jurado 

Whether you are a franchisor or franchisee in Florida, we will be glad to guide you to attain your entrepreneurial goals. Contact us today by calling (305) 921-0976 or emailing Romy@juradolawfirm.com for an individual consultation.