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Franchise Law

Investing in a franchise can prove to be the opportunity of a lifetime. However, with this investment comes great responsibility. Whether you are buying your first franchise, creating a new franchise or are a franchisor seeking to expand, it is imperative to take the time to carefully examine and prepare your investment strategy.

At Angiuli & Gentile, LLP, we have been advising clients in Staten Island and the surrounding areas for nearly 30 years. Supervising partner Gary C. Angiuli’s considerable experience, vast legal knowledge and entrepreneurial spirit have enabled many of our clients to build successful and prosperous businesses.

Please call 347-201-4447 to arrange a consultation. Our firm is a member of the International Franchise Association and has the skills needed to effectively analyze your prospects for success.

Helping To Buy Or Sell A Franchise

Many potential franchisees fall in love with the idea of owning a particular franchise. While enthusiasm is a positive entrepreneurial trait, financial and business realities must always be carefully considered. Our extensive experience in franchise investment matters helps clients understand these realities, as well as the steps they need to take to fully protect their investments.

Our firm can review the franchise disclosure documents (FDD) thoroughly, with an eye toward answering such key questions as:

  • What are the obligations of the client in terms of sales and the purchase of supplies and services from the franchisor or designated provider?
  • What are the franchisor’s obligations in terms of training and marketing support?
  • Is the client subject to any potential liability and, if so, what steps can be taken to limit any legal exposure?

We are also able to assist clients in engaging an accounting firm to create a pro forma financial statement, compare the franchise offering with similar franchise opportunities, make certain there is flexibility and opportunity to grow, and devise an exit strategy so that the business can be sold when appropriate.

Our firm believes that by undertaking advance planning, clients are better able to make educated decisions and capitalize on potential for growth.

Key Legal Issues In Franchise Agreements

For anyone considering or offering a franchise, understanding the legal structure of the franchise agreement is fundamental. These complex contracts govern every corner of the franchise relationship and contain provisions that can significantly impact business operations and profitability. For those among many more benefits, knowing what to look for helps protect your investment and business interests.

1. Territorial Rights And Restrictions

They define the geographic area where you can operate your franchise without competition from other franchisees or the franchisor itself. Clear territory definitions prevent market saturation and protect your customer base. These provisions may include exclusive territories, protected territories with certain limitations or nonexclusive rights. A well-defined territory can significantly impact your franchise’s growth potential and long-term success. Our attorneys can help negotiate these provisions to maximize your market opportunity while ensuring appropriate protections.

2. Renewal, Termination And Transfer Provisions

These critical clauses govern how long your franchise agreement lasts, under what conditions it can be renewed or terminated, and your ability to sell or transfer the business. Renewal terms often include fees, renovation requirements and signing of the then-current franchise agreement. Termination provisions outline circumstances where either party can end the relationship, while transfer clauses typically require franchisor approval and may include fees or right of first refusal provisions. We can help you understand these crucial terms as they directly affect your exit strategy and long-term investment value.

3. Fee Structure And Ongoing Costs

Franchise agreements include various financial obligations beyond the initial franchise fee. These typically include royalty payments (often 4 to 8% of gross sales), marketing or advertising fund contributions, technology fees and required purchases from approved suppliers. These ongoing costs directly impact your profitability and cash flow. Our attorneys carefully analyze fee structures to ensure transparency and help you understand the full financial commitment before signing the agreement, preventing unwelcome surprises down the road.

4. Dispute Resolution And Governing Law

Most franchise agreements specify methods for resolving disputes, often mandating arbitration or mediation before litigation. They also designate which state’s laws will govern the agreement, typically the franchisor’s home state. These provisions can significantly affect your legal rights and remedies if issues arise. Our lawyer team can help you understand these terms to help you evaluate potential risks and protect your interests throughout the franchise relationship.

5. Intellectual Property And Brand Standards

Franchisees must adhere to strict guidelines regarding the use of the franchisor’s trademarks, trade dress and operational systems. These provisions help maintain brand consistency but may limit business flexibility. We can help you understand your obligations and rights regarding the franchise system’s intellectual property, ensuring compliance while preserving appropriate business autonomy.

Navigating these complex legal issues requires experienced legal guidance. Contact us to help ensure your franchise agreement properly protects your interests and sets the foundation for business success.

Advice On Starting A Franchise

At Angiuli & Gentile, LLP, we have also helped get many new franchise concepts off the ground, and we advise clients on business organization and intellectual property matters.

When it comes time to sell a franchise concept, we can draft FDDs that comply with the law and provide the information that prospective franchisees need to fully evaluate the opportunity.

Contact us online or call 347-201-4447 today to schedule a consultation with a skilled Staten Island franchise lawyer.

You’re An Expert In Your Business. But When It Comes To Legal Matters In Your Business, Please Don’t Assume Doing It Yourself Is Safe. It Isn’t.

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