What Does a Franchise Lawyer Do?

It has always been troublesome for us not to know how things work, like how networking does its magic, how a specific machinery functions, and how the law applies to our everyday lives. So if you have no idea how franchise lawyers work and how they can help, you just found the right article to help you out. And while we are on the subject if you need a franchise attorney in scottsdale be sure to call Jeffrey Frankel Law.

A lawyer, franchise lawyer, and franchise attorney are people who are well-versed in how legal issues involving federal and franchise law applies. They are your lifeguard when you are about to drown and have trouble getting back up on your foot.

Without further ado, let us briefly discuss what these lawyers can do for you and how you can benefit from it.

What Do Franchise Attorneys Do Exactly?

 A well-versed franchise attorney can help future business owners move their way to the preliminary process needed for starting a franchise operation business.

They help out reviewing certain documents and agreements like (FDDs), known as Franchise Disclosure Documents, which is provided to the potential franchisee by the probable franchisor candidates.

Some franchise agreements tend to favor the franchisor, and this is where the franchise attorneys come in. They are willing to review these agreements and make negotiations that may favor the franchisee. They will look for unfair terms and will urge better terms for it.

Some of the FDDs will consist of:

  • The liabilities of the company franchise in both prior and after opening the business.
  • The starting fees and recurring fees will be required for the franchisee to pay.
  • List of financing arrangements provided
  • A breakdown of the startup incurred during the initial investment before and after the business opening.

A franchise lawyer is a valuable key asset for business matters that may arise during the operation if you lack knowledge of how to resolve matters and eventually lose leverage against their franchisor.

The Takeaway

Suppose you believe that you lack knowledge on how the law works, especially when it comes to franchising. Get in touch with someone who knows what they are doing and can help you stand your ground if you are being violated or there has been a breach with the contract that has been signed.

Never risk-taking matters on your own when you have little wisdom in these kinds of grounds. When you do something wrong that is not according to the law, you will be eaten alive, and before you know it, you have already lost your business and your invested money.

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The Good, the Bad and the Ugly of Franchising

Franchise Operations can make substantial earnings. (The Good)

Every hour in the United States a franchise is sold. Franchising has grown into a thriving and established business activity. Large corporations are using franchising as a means for diversification, while franchisees seek it as a competitive edge over other small businesses It is apparent that franchising has become a major force in the food industry. Not only are fast food restaurants franchised today but theme restaurants, catering operations, and family-style restaurants are being packaged and marketed to a seemingly inexhaustible market of anxious would-be restaurateurs even during recessionary economic times. Franchising is unique in that it probably is one of the few forms of business activity that by its very nature recreates itself by establishing new business units from within itself. The United States Department of Commerce has reported that over one-third of all retail sales are currently made through franchise stores. This growth is expected to continue. Notice:  Business Lawyer in Scottsdale AZ

Buying an existing Franchise opportunity (The Good & The Bad)

Owning a successful franchise in the foodservice industry can be a truly comforting feeling. You go to work, hang out your shingle, open your doors and the crowds come rushing in to purchase all of your world-famous products. They pay top dollar for them and then go out singing the praises of your establishment and another 50 customers come in and start the cycle all over again. This goes on until you close for the day. Then you lock up and get ready to start the process all over again the next day. Right?

Wrong! This may be the stereotypical version of the way it’s supposed to be, but in many instances, this example does not apply. The reality of the situation is exactly the opposite. Be aware that in some cases the candidates who pay fees to purchase a new franchise are really signing on for research and development of the concept at their own expense. These newer Franchisers often have not marketed their product sufficiently to know if it will work in all parts of the country or for that matter, the world. Instead, they use the money of their franchisees to further develop their concepts.

Knowing this, why open a company store in a new market area when the risk can be transferred onto an unsuspecting franchisee? I say “unsuspecting” because the profile of a prospective franchisee usually shows far less experience and exposure in the field than that of an experienced independent operator. And after all, isn’t that the reason a prospective franchisee, usually with little experience, buys a franchise? Be aware that not every franchise can be for you. Today, there are still dozens of fly-by-night franchise concepts that go in and out of business every year, taking many investors down with them in a flaming crash.

Starting a new Franchise. (The Good)

I was involved for many years with franchise operations and problems as a VP and CEO of franchise companies. I understand that franchising is a rapid and relatively low-cost way to expand your business when compared to the money, people, and time that otherwise would be required to build, open and operate a chain of company-owned stores.

Restaurant owners interested in successfully expanding their business enterprise may know that now is the time to expand but do not have the financial resources or the management personnel to build and operate a chain of company-owned stores. They should consider franchising. It can be an effective way to obtain capital to build stores and to obtain dedicated people to run those stores. Franchising has proven itself as a successful method to expand one’s business and gain national name recognition.

A successful franchise system starts with a successful prototype store. (The Good)

The franchised business must be profitable, have a name that can be registered as a trademark, and has business operating systems that can be taught to a new franchisee. A new franchiser must have sufficient capital to start a franchising program. Prior to selling or even offering to sell a franchise, a franchisor must prepare a comprehensive franchise agreement and register a franchise offering circular. The federal and state franchise laws regulate the pre-sale disclosure of information to prospective franchisees. A franchiser must understand the special ongoing franchise relationship, select qualified franchisees, and develop strong, long-term relationships with the franchisees.

The initial franchise fee is a one-time fee charged to new franchisees to secure the franchise, and it can range from $10,000 and up. The ongoing royalty fee is based upon a percentage of the gross sales of each franchise location. The franchise fee, royalty fees, and the sale of supplies to franchisees are typical ways by which a franchiser makes money. Though the amount of these fees ranges widely, a $25,000 franchise fee and a 6% royalty would be fairly typical. A franchiser can also provide money savings for all stores, including its company-owned stores, through volume discounts from suppliers of equipment, inventory, services, and advertising.

To undertake the legalities of a new franchise, you need a franchise lawyer and a restaurant consultant knowledgeable in franchising. Your franchise lawyer will write the franchise contract, draft and register the franchise offering circular, register the franchise salespeople and advertisements, review the real estate leases, prepare any necessary corporate documents, and have the connections with all the business services necessary for you the fledgling franchiser to get started. The Restaurant Consultant can assist with operation manuals, training programs, advertising and public relations materials, franchise recruitment programs, business plans and communication programs which are required by your State’s franchising authority. This consultant can also assist in fine-tuning your original operation into a smooth functioning multi-unit enterprise.

Franchisee problems (The Bad)

As franchising has flourished so have the problems between the operators and the franchiser. Over the years a host of franchisee advisory groups and franchise councils have been formed by franchisers to learn what franchisees want and need from the franchiser in order to grow and prosper. State and Federal regulations enacted beginning at the end of the 1970s, more tightly controlled franchising and tended to benefit the franchisee. The 1979 Federal Franchise Act reflects the modern tendencies at all levels of government for tighter control of what franchisers can say and do and with established procedures for the protection of franchisees regarding terminations, renewals, additional franchises, and claims against the franchiser. Even so, there are often serious drawbacks.

A real Franchisee Problem (The Ugly)

Here is a case in point – My company, GEC Consultants, Inc., was called in to help a franchisee of a small-sized but well known 50’s burger concept. The client’s problem was diagnosed as not having enough of the proper items to make it in Chicago’s diner market. GEC suggested five new items that were then inserted into the operation and for twenty-two days, they sold incredibly well. The franchisee then made a fateful error. He didn’t inform the franchise Company of his intentions. This was a violation of his agreement. As a result, the Company threatened legal action if he did not remove these items. Subsequently, the items were removed. A short time later, the franchisee made a request to once again put these items back on his menu, and permission was denied. Without the ability to alter the menu to help himself, the franchisee eventually was forced to give his unit back to the franchiser for very little compensation. The Company went ahead and began to operate this unit as its own. Shortly thereafter, a story appeared in an industry publication stating that this franchise was rolling out “new” menu items throughout all its stores and that their reception had been fantastic. These were basically GEC’s suggested menu changes.

Here was a case where operators were resourceful enough to see problems with the stability of their franchise vehicle, and found solutions to their problem but were restricted from using them, according to their franchise agreement, and they ended up solving a problem for the parent company unit-wide. When this happens, a franchisee almost never receives compensation nor any credit for aiding in the solution. They may even lose their franchise. It’s a no-win proposition.

This case indicates that the Franchise Company had always known about the weaknesses in its menu. The fact that it was hurting their franchisees did not seem to bother the Company. Why should it? They let GEC’s client pay for the marketing research and development of the new recipes. After restricting the franchisee’s ability to use these new menu items successfully, they simply went in, picked up the pieces, and then did all the things they wouldn’t let him do. The outcome was extremely profitable for the franchiser.

Unfortunately, you can’t say the same for the poor franchisee. After paying good money to purchase what he felt was a fully developed concept, he got instead a weak sister idea. After the franchisee hired professionals to help rescue their sinking ship, the parent company hid all the life preservers from them. They rescued themselves and discarded their franchisee (our client) like some old tattered pair of pants. This hardly seems fair.

The moral of this story reads like something out of Business Law 101. Caveat Emptor let the buyer beware! When you go out shopping for franchises you had better bring along an expert or you may be buying nothing but trouble and paying your money to further the development of someone else’s company.

SEO Services Phoenix

Do You Really Need SEO Services for Your Organization?

SEO Services for Your Business

Opposite to what several web designers would purposefully recommend; one can endure online without taking the support of any kind of SEO services company.

Yet this absolutely relates to a limited collection of situations. Blog owners that simply wish to broadcast their idea without seeking any kind of huge crowd to their website might not require SEO Services Phoenix. Internet site owners whose site is already recognized to its targeted audience numerous not always need SEO services to promote it better.

Once more, any person that simply wishes to get on the Web without any objective to be popular or motoring earnings can make it through without SEO restorative.

But these situations are actually rare, especially when somebody gets on the Web to earn money when somebody is on a service that is truly affordable and also when someone requires to target possible traffic to drive maximum interest.

Currently, the truth is almost all the sites wish to be the leader in their niche today. They wish to be prominent, they want to be fund and obtain discovered. As well as this is precisely where as well as why they need SEO services from a good SEO company.

Right here’s an in-depth view why the solutions of any SEO Company is really essential

The significant number of website traffic is originated from online search engine today. People will type key phrases in the search box to find what they require. If they don’t discover you in the first few searches, they could never understand who you are.

Local SEO Assistance

There are vast websites readily available today. The marketplace is competitive and everybody is below with something unique. Out of all these, internet search engines enjoy recommending searchers the most effective quality sites which might help them in taking a decision. Currently, SEO’s assistance online search engine do their work more conveniently by suggesting the sites they are dealing with. Thus, the internet search engine believes them.

SEO’s assists you get insightful thoughts. When you see the details of the activities initiated by the incoming traffic to your website, you understand what your audience really requires from you. Their key phrases, their preference, their likeness aid you enhance your website in a thoughtful method. You would see the following large write-up on your blog site is actually based on key words looked by your audience.

Unlike various other tools of marketing that can cost you cash and time, a great SEO services company in Phoenix for example needs much less time and also much less cash to show you quality outcomes. Your time is conserved as well as you improve advantages of an improved service.

An SEO Company can track down the intricacies of your competitors extra accurately. While you might presume what’s pulling up the success of your rival, the SEOs can identify their real success tale. They can learn the ideal key phrases, target market, and nature of techniques that your competitors are making use of to be on the top. Based upon the searchings for, they can obtain a reasonable photo of the marketplace, competition, and future game plan.

That’s fine, however, aren’t there any obstacles?

There are. In fact, there are many. With the substantial appeal of SEOs, the sector is coming to be widely effective. But then certain vital factors play a pivotal duty in determining its success constantly. Getting the aid of any SEO firm is useless if the solutions they give do not fetch you outcomes. This is the main point where video game changes. There should be numerous cases where an entrepreneur fails to understand the full powers of SEO.

They take their site through to the SEO services company really hoping some excellent news is on the stock quickly. However, when their IT spends return with absolutely no benefits, they start believing SEO is of no help. This develops out of lots of factors, a few of which numerous include:

The SEO Company is not experienced enough to comprehend your organization

The SEO Services Company failed to locate the right set of keywords which matters you the most

The company is utilizing unethical methods to place the internet site

The traffic is coming yet it’s not making the means for generating profits.

The client has not requested the complete benefit of SEO Services. This consists of obtaining fifty percent of the services when just a full-fledged SEO plan could be useful for him.

There is also a great deal of various other variables that collectively cause the failure of service. If a client understands the technicalities as well as smart enough to comprehend in advance what he actually needs to pay, he would definitely recognize a greater ROI. In conclusion, if you intend to be discovered on the internet, you need an SEO service. As well as if these solutions come from a quality SEO services company, you are sure to scale new heights of success. That’s it!