Work with an Experienced Oklahoma City Attorney
There are over 749,490 documented franchised units in the US, according to the IFA Franchise Business Economic 2012 Outlook. While this is a slight decline from past decade, it has grown again since 2011. That means that over 700,000 franchise agreements have been made in order to secure new businesses. Whether you are currently looking to buy a franchise or already own one, enlisting the help of an experienced business planning attorney is vital. Every franchise operation is typically governed by a franchise agreement between the franchisor and franchisee. Each franchisor is different in their requirements or regulations for a franchisee, controlling location, royalties and other factors at times.
Starting a franchise can be a big risk, but with the counsel and legal representation of our Oklahoma firm, you may be able to ensure a successful future. Each franchise has its own provisions and can be shaped by your opinion and discussion with the franchisor if you have the proper legal support to keep you informed. For more information on how a business lawyer from The Law Office of Bryon J. Will, P.L.L.C. may be able to help you with your franchise agreement, talk to one of our lawyers by phone or through email.
Working out the Agreement
When trying to come to a franchise agreement, it’s more than likely that most provisions made will directly impact how you run your business. The biggest factor you want to make sure you work out correctly is royalty payments, which are periodic payments to the franchisor. The timing of payments can vary from weekly to monthly and will be taken from your gross sale of their product or service. These fees can have a direct and crucial impact on your ability to make a significant profit. The agreement also includes the location, or site selection, which is often chosen by the franchisor. If you select your own location, it will need to be approved by the franchisor. This is important to your potential for making profit as well.
Knowing how to select the best and most profitable location is key. Your design and appearance of the franchise will depend heavily on the agreement as well, often having to fit previously set standards. Other functions like product or services sold, daily operations, sales area, advertising, and insurance all depend upon the agreement reached with your franchisor. Getting the best possible agreement requires informed and experienced legal representation. Having our lawyers review and negotiate your potential franchise agreement may save you on profit, expenses, royalty payments and ultimately the success of your franchise.
Do I have any control?
Franchise agreements can seem limiting and even restrictive if you don’t negotiate well and settle on terms that you feel comfortable with. All agreements are fixed for a certain amount of years and are subject to termination only by good cause. When the agreement expires, a franchisor may offer you a renewal, which may differ from your previous agreement. If your agreement expires soon or already has and your franchisor is offering you an undesirable agreement, contact an Oklahoma City business attorney today.
Most business decisions or judgments you make will have to go directly through your franchisor, depending on the agreement. Not following those regulations could lead to you losing your franchise and valuable investment. Don’t take your agreement lightly; maintaining the franchise agreement requirements is important for your small business’s success. For questions on how your franchise agreement might restrict or affect your decisions, contact us today. We have offices in Perry and Oklahoma City, and can help clients throughout the state of Oklahoma.