Seeking legal counsel is an important component in due diligence when considering not only the purchase of a franchise, but through the lifecycle of the business. Understanding the legal climate and specific regulations impacting the decision making will help reduce risk and potentially avoid future litigation.
Here is an article by The Witterman Law Firm P.C. discussing the importance of following legal guidelines when considering the purchase of a franchise.
Click here to view the article – Follow Legal Guidelines When Considering Purchasing A Franchise
Potential franchisees are advised to follow all legal guidelines
Georgia entrepreneurs wanting to buy into a franchise may see a business opportunity leading to dancing dollar signs, but they need to follow the legal requirements to operate this type of business. A franchise is an agreement between the operator, or franchisee, and the franchise, or business, to use the business brand and marketing strategies to realize a faster return on their investment. Theoretically, it may sound simple on paper. But building a successful franchise takes careful planning and solid business advice.
Franchises can include either starting from scratch or taking over an existing business. There are as many franchising opportunities as there are types of businesses, and before embarking on this type of endeavor the franchisee should decide what they want in a business. It brings greater risk than working a 9-to-5 job, the hours are longer and there is always the possibility of losing money. But owning a franchise can also generate greater financial rewards.
After doing the research and attending franchise workshops and webinars on the topic, finding a trustworthy franchise broker is an important first step. An ethical broker can help the franchisee avoid making bad business decisions that might lead to legal trouble. Deciding whether to take on a business partner or go solo is also critical, as is learning the laws regarding employees’ rights on the job. Small businesses are the backbone of Georgia’s economy, and entrepreneurs with a clear understanding of the legal landscape can avoid litigation more easily.
Georgia is one of 26 states with business opportunity laws in effect. Many of those laws ban sales of business opportunities unless the seller provides potential purchasers with a pre-sale disclosure document that was previously filed with a designated state agency. Unlike some other states, however, no filing is required in Georgia. This is an important detail, and potential franchise operators can obtain legal counsel from a business and commercial lawyer.
Source: Advantage Business Magazine, “Are You Thinking About Buying A Franchise? Here Are 10 Things You Need To Know“, Ellen Sullivan, June 10, 2013