What do you do if you're unsure about the terms in your franchise agreement?

The FDD can be viewed as an offering memorandum of sorts for a franchise brand and is required by the FTC to be written in plain English, making it easier to understand. All FDD's will be organized into the same 23 items (sections) which cover specific aspects of the business, fees, obligations and financial performance representations. Go through this first and ask the franchisor clarifying questions on areas you are uncertain on.

Read the franchise disclosure document (FDD) like it's the juiciest novel you've ever encountered. It's packed with all the important details about the franchise, from fees to obligations to performance.

Always refer back to the FDD as you will often find the answer to your question regarding franchise operations or terms within the many pages of the document.

If you are going to hire an attorney to review the agreement, this should be done towards the end of the discovery process once you have honed in on a single brand. When considering attorneys to review the franchise agreement, it is critical that the attorney exclusively specializes in franchising. This is a nuanced area of practice and needs specialized counsel. Most franchise attorneys will have flat rate pricing for reviewing the franchise agreement; if they are charging you by the hour for this service, you're using the wrong attorney.

Here's where it is of paramount importance to engage a franchise specialist lawyer to review the agreement you're considering signing. These agreements, in many cases, are set in stone and are unlikely to be changed to suit specific circumstances, but for peace of mind and reassurance, please have them looked over, this way you'll know exactly what your are getting in to. Ensure also to ask the lawyer to specifically see that the agreement has defined clauses around territory boundaries and that you understand what rights you have over the geography.

Franchise agreements are no walk in the park; they're complex legal documents that can significantly impact your business and financial future. As your dedicated legal counsel specializing in franchising, my mission is crystal clear: to safeguard your interests every step of the way, from negotiation to execution. Here's a breakdown of how I'll be your trusted partner in this intricate process: Thorough Review: Your franchise agreement is like a map, guiding you through the journey of entrepreneurship. Strategic Negotiation: Armed with an arsenal of legal expertise and industry know-how, I'll step into the negotiation ring on your behalf. Risk Assessment: Picture me as your legal Sherlock Holmes, sniffing out potential red flags.

Franchise agreements will always favor the franchisor and can seem heavy handed in some cases. Speaking to existing franchisees about their experience with the brand as it relates to specific areas of concern in the franchise agreement can provide helpful insight. You shouldn't rely solely on this feedback for your decision but it can be a helpful factor nonetheless.

Who better to give you the lowdown on the franchise experience than those who've been there, done that? Reach out to fellow franchisees for some real-talk insights.

Reach out to your franchisee peers and ask them your questions to see if they have experienced the same issue. They are a wealth of knowledge and I have found that most of them are more than willing to help others within the franchise network. Most franchise networks also have social media groups on Facebook that you can join. These social media groups are a wealth of knowledge and can usually answer your question or give you some advice on how they handled a similar issue. I am very active in several franchisee social media groups and learn so much from the daily posts.

If you want to understand the available options you should talk to coaches who are experts in their field. When in doubt, consult the experts. Whether it's a financial advisor or a business consultant, getting a second opinion can offer valuable perspective.

Make sure that you are working with a knowledgeable team of professionals that can help you, including a lawyer, banker, and CPA. They can help explain the franchise agreement to you and answer your many questions. They can also usually prepare some financial analysis using the financial data provided in the FDD such as historical financial results and operating expenses. I see too many franchisees overlook the review of the FDD and rush into a franchise investment or do not seek expert advice.

Franchise is not a business where profits are in one night. You would be taking care the Brand value, marketing, and Authenticity of the brand that the founder already established. Rome wasn't built in a day, and neither should your franchise decision. Take your time to weigh the pros and cons before jumping in headfirst