Fuggedaba tax day

April is upon us, and while most of us are dreading the timely completion of our taxes, Franchise lawyers are focusing on the other date--the period of time in which franchise filings (for companies in which the calender year is the fiscal year) are due. A couple of things to remember to keep yourself sane.

1. The transition to the new California FDD is over.
2. Ask your client to send as much information as possible up front, well before the audit is complete.
3. Check all formatting three more times or get someone who still has their eyesight to do it for you.
4. Ask your client the questions even if you think you know the answers--things have a tendancy to change.
5. Try to smile when you are told that the audit will come late and are asked to submit the circular as a placeholder. Then remember to offer your client the right and candid advice about what not to do in the interim.

Franchise: Big Firm versus Boutique

As we face the end of the year, we are all attempting to complete work on the desk so that we can enjoy the holidays. However, this is also a good time to reassess our annual franchise registration fees, and that includes lawyer's fees. Although it may make sense to work with large franchise law firms for some, others will notice that a lot of the work is repetitive. Why not find out if there is a way to cut costs by working with a boutique law firm? The benefit of a large firm is that paralegals do much of the work so perhaps you do not pay the senior partner's rate. Generally, the resources of the larger firms are superior, especially when it comes to disputes and litigation. With a boutique firm however, the attorney manages your registration, hourly fees tend to be much less, and you may even be able to negotiate a flat fee for the work. You can nearly always get a lawyer of this firm on the phone; if not, you will be contacted within an hour or two of placing your call. We work in a network of other lawyers practicing outside the franchise, licensing and corporate arena so our resources are exceptional. Call Rob at 415-377-3919 for details.

Franchisees Who Close Their Eyes Before Signing

Franchise law is an extended business expansion system that involves the exercise of territorial rights, intellectual property rights, 3rd-party vendor relationships. It also involves the law of distributors, agency, employment law, products liability and many more areas of business law.

When I am not a franchise lawyer, I work with media entrepreneurs including advertising and marketing people and certain business authors. What they all have in common is the drive to develop marketing relationships that make everyone money. Unfortunately it is easy to lose sight of the value of your franchise proposition from the perspective of someone who has purchased a franchise by leveraging his (or her) home or all his savings. This is the precise time franchisees plunge in to the franchise waters with eyes closed. When people come to me with a signed franchise agreement (and UFOC) that had not been negotiated by an attorney, I often do not want to read that document myself. I am afraid of what I might find. More often than not, if a client comes to me with a document before signature and after reading my memo, they either (1) do not sign it or (2) address a few key issues that will enable them to move forward. You would be surprised at how many franchisors will change some language that will permit both parties to move forward comfortably.

An Introduction

Thank you for taking the time to read Franchise Lawyer, the blog. Franchises are growing steadily with no end in sight. If you are thinking of buying a unit or territory from a franchise, or if you are forming a franchise, there are many good resources for franchise law and the related news of the day. Unfortunately, on the Internet, much of the noise of advertising and marketing overshadows some great sources. I will do my best to bring together some effective sources for analyzing legal issues around your franchise or franchise unit.

If you have any questions, you may contact me at preskilllaw@hotmail.com or by phone 415-377-3919.