Franchise Law

 

Franchising is an increasingly popular way to go into business for yourself, but not by yourself. Prospective franchisees can choose from several thousand successful franchised business concepts. Franchising can also be an appropriate way for the owners of a proven business model to expand into new markets without incurring all of the substantial capital costs and risks associated with expanding via company-owned operations and with company employees. Franchising can thus offer both the franchisee and the franchisor a way to minimize the risks associated with business ownership, while preserving the substantial economic incentives inherent in business ownership.

MGM Law has a thriving franchise practice. MGM lawyers regularly counsel and advise prospective franchisees about the unique legal issues presented by franchised business opportunities. We review franchise disclosure documents and agreements and make sure the prospective franchisee understands its obligations under these documents. The experience gained from reviewing and analyzing many different franchise system agreements enables MGM’s franchise lawyers to efficiently spot issues in these agreements and suggest appropriate modifications. 

In addition, the law can impose significant limitations or restrictions on a franchisor’s conduct that may not be apparent from the face of the franchise agreement. We make sure that prospective franchisees understand their rights and obligations both under the franchise agreement and the law. We can also help select and form an appropriate business entity such as a limited liability company for the franchisee’s business, as well as perform the other legal work that may be necessary, such as reviewing leases and reviewing or creating other necessary legal documents such as employment agreements.

MGM also assists business owners considering franchising as a way to expand their operations, as well as serving as counsel to established franchised businesses.

Occasionally, disputes or disagreements arise involving franchised businesses. MGM’s litigators have extensive experience counseling clients and, where necessary, litigating disputes involving franchises. Typical examples of such matters are franchise termination actions, and legal actions concerning covenants not to compete or the misuse of intellectual property and proprietary or confidential business information. For more information concerning MGM’s franchise practice area, please give us a call.

Attorneys:

Scott Simmons

Additional Resources:

Thinking About Owning Your Own Business? Some Considerations about Buying an Existing Business Versus a Start-Up

Thinking About Owning Your Own Business? Some Considerations about Franchises