Legal Points
    Please seek legal advice.

  • If you feel that you are being threatened,  intimidated, or treated unfairly by your
    franchisor. Start documenting everything.
  • If you think that they are in contract or UFOC violation
  • If you are considering closing your store
  • If you are considering opening a drop-off store

You may be in a very good position if you don't try to take matters in your own hands, or
make what appears to be simple decisions on your own. For reliable council on issues
concerning your relationship with your franchisor we recommend you contact an
attorney who specializes in helping franchisees.

This site is not intended to be used in place of professional legal
council, but to make you aware of the need for it under certain
circumstances.
    What happened to my legal fund?
Most franchisors have a section in their agreements, whereby, any disputes between the
two parties will be handled by mediation and arbitration (M/A). That might sound like a
reasonable request when you're eager to get your first store open. Don't get blindsided by
enthusiasm. That clause favors the franchisor because M/A is very costly for a franchisee
who has lost thousands of dollars due to unethical behavior by a franchisor. The
procedure can be drawn out for a long period of time by a franchisor using stall tactics.

Check with your franchisee attorney about an alternative method before you sign a
contract.
    Your store lease
When negotiating your lease with the landlord remember these four things
  1. Include an option to terminate the agreement at twelve months without penalty.
  2. Include a statement that lets you out without penalty if your franchisor terminates
    you.
  3. Include a graduated buy-out plan should you need to terminate before the end of
    the lease.
  4. Don't sign a personal guarantee.

A franchisee attorney should be able to determine what's right for you.
© 2006-2007 eCential
Group, LLC