FRANCHISE LAW

Franchising is a proven and powerful business model, but it’s not always simple. Whether your idea is local, national, or international, Hight Law can help you create a winning strategy to protect and grow your business concept. We have the proven expertise to guide you through the complex web of evolving regulations so that you can focus on building business relationships and not miss an opportunity to grow. We serve both franchisors and franchisees at all stages of their business evolution.

PRACTICE SPOTLIGHT

Hight Law regularly handles franchising and franchise matters for:

Franchisees

Hight Law understands that the relationship between franchisors and franchisees is not one of equals. Franchise Agreements are typically one-sided documents drafted solely for the benefit of a franchisor. Franchisees are given very few rights and limited mechanisms to enforce those rights. However, the franchisee does have rights and Hight Law can help you protect them.

Before purchasing a franchise and signing the Franchise Agreement, it is extremely important to consult an experienced franchise attorney who can review the opportunity with you and counsel you on the particulars of the Franchise Disclosure Document (FDD). The FDD is a lengthy disclosure statement that contains FTC mandated information on the franchisor, the business opportunity and the agreements that you will be required to sign in order to purchase a franchise. Hight Law will help you review and interpret the FDD and Franchise Agreement by:

Performing a detailed review of each and every page of the documents;
Identifying any red flags during the review;
Preparing a written report of our findings in plain English;
Assisting you in comparing terms offered in other franchise agreements; and
Helping you formulate questions for the franchisor to better understand the opportunity.

Hight Law offers our FDD and Franchise Agreement review on a flat fee basis:

$950 for a single unit franchise opportunity.

$1,250 for and area developer combined with a single unit franchise.

We also offer additional services commonly needed by franchisees:

Creation of a new business entity to shield your assets. See our flat fees.
Lease review and negotiation. Hourly typically $750-$1,500
Employment contracts. Flat fees available.
Ongoing legal support (transactions, employment issues, litigation, general counsel advice).
Assistance with the Sale or Transfer of your franchise.
Dispute resolution with your franchisor.

New Franchisors

Congratulations on creating a business concept that is teachable, recreatable and franchisable. Hight Law can help you structure your new franchise and comply with all the Federal and State legal disclosure requirements. The first steps in this process are to form a new entity for the franchsing activity and to protect your intellectual property rights by registering any trademarks, service marks and copyright. If you have not already completed these first steps, Hight Law can assist you with these necessary protections.

The next step in establishing your franchise is to create the Franchise Disclosure Documents (FDD). Federal disclosure laws exist to ensure that potential franchisees receive adequate information about the franchisor, the business opportunity, and the contracts that the franchisee will be required to enter into. Certain states have their own disclosure requirements that franchisors must comply with if they operate a franchise system in those states. This can leave you with a patchwork of different requirements that your FDD must comply with.

In establishing your new franchise, Hight Law can assist you with:

Determining the right type of franchise structure for your business (single unit, area development, master/sub franchising).
Determining the best terms for your franchise agreement (fees, royalties, non-competition, reporting, renewals, transfers, etc.).
Preparing a FDD in compliance with the FTC-Rule.
Drafting a Franchise Agreement and related agreements.
Registering the FDD in any registrations states that you will operate in.
Negotiating and documenting deals with franchisees, area developers, or master franchisees.
Ongoing legal support (transactions, employment issues, litigation, general counsel advice).

Hight Law offers both flat fee and hourly arrangements to meet your unique needs and circumstances.

Our Flat Fee for preparation of the FDD and Franchise Agreement for a single unit franchise (inclusive of consulting & planning) starts at $9,750.

Established Franchisors

You already have an established franchise system. However, every business system evolves over time. You may want to change the terms of your franchise agreement, the way that you sell franchises, or the structure of your franchise system. You may look at selling franchises in new states that require registration. These are all exciting challenges that Hight Law understands and can assist you with.

Hight Law provides the following types of services to established franchisors:

Review, modification, and updating of your FDD.
Ensuring compliance with registration state disclosure requirements.
Registering your franchise opportunity in registration states.
Review, modification, and updating of your Franchise Agreement.
Preparing Area Development Agreements and Master Franchise Agreements.
Enforcement of franchisee obligations.
Negotiating and documenting deals with franchisees, area developers, or master franchisees.
Negotiating and documenting renewals.
Negotiating and documenting supplier and vendor agreements.
Ongoing legal support (transactions, employment issues, litigation, general counsel advice).

Hight Law offers both flat fee and hourly arrangements to meet your unique needs and circumstances.