FRANCHISE LAW
DiPasquale & Summers has extensive experience in franchise matters, representing both franchisors and franchisees.For start-up franchisors, we answer questions like “What is a franchise?” and “How do I franchise my business?” On behalf of existing franchisors, we draft Franchise Disclosure Documents (FDD) in compliance with the Revised FTC Franchise Rule and state law. In conjunction with the drafting of an FDD we draft franchise agreements and ancillary documents mandated by federal and state franchise law. The franchise agreement governs the franchise relationship between franchisor and franchisee. Also on behalf of franchisor clients, our firm registers the FDD in all states which require the registration of franchisors. After drafting and registering the FDD in various states across the county, our firm oversees the annual renewal of the FDD registration in these states. We also ensure that franchise sales advertising materials are registered in those states requiring it.
During the sales process, the firm is available to franchisor clients for negotiations of the franchise agreement, for salesperson questions of what representations may be made and what may not be said, and to ensure that the FTC Rule and state law are complied with during the disclosure and sales process.
In the final step of the sales process, the firm attends closings on behalf of franchisor clients to ensure that the offer of sale was lawfully made, and that the franchise agreement and ancillary documents are executed properly by the parties.
In representing those interested in purchasing a franchise, we help answer the question “How do I purchase a franchised business?” and “What should I know about franchise law” when doing so. We review and analyze the franchisor’s FDD, and when necessary attempt to negotiate changes to the terms of the franchise agreement and ancillary documents on our client’s behalf. In doing so, we advise prospective franchisees of the pitfalls of the agreements so that the prospective franchisee client can make a fully informed decision.
For existing franchisees of a franchise system, we assist franchisees in matters pertaining to the sale, assignment, or transfer of a franchised business; expiration or termination of a franchise; issues surrounding renewal of a franchise agreement; and disputes involving breach of a franchise agreement, disputes involving royalty and other fees, interpretation of non-compete agreements and issues involving exclusive territories and encroachment.
Here are just some of the franchise law services we offer our clients:
Drafting Franchise Disclosure Documents (FDD) and Franchise Agreements
Startup franchising to convert your business into a franchise system
Serving as fractional general counsel to Hawaii and nationwide franchisors
Counseling franchisees in purchasing franchise units
Trademark Registrations
Conducting pre-franchising, suitability analysis for entrepreneurs
Advising clients regarding the alternatives to franchising (e.g., licensing and distribution programs)
Filing franchise registrations throughout the United States
Training franchise sales personnel in franchise law compliance issues
Negotiating asset sale, merger and acquisition agreements for franchise networks and individual franchise units
Reviewing and evaluating franchise opportunities for prospective franchisees
Compliance and regulatory issues
Pre-litigation legal counseling
Franchise litigation, arbitration and mediation