Franchising


Failure to comply with applicable statutes and regulations can result in significant liability for franchisors, while potential franchisees sometimes have difficulty understanding the risks and liabilities of a particular franchise opportunity. At McGrath North, our franchise and distribution practice offers an extensive range of legal services to both our franchisor and franchisee clients.

Our franchisor clients can benefit from our advice in developing a system for selling and maintaining franchises that complies with applicable law while avoiding legal pitfalls and damage to their brands. Franchisors can also benefit from our experience with negotiating, litigating, mediating and arbitrating franchise disputes.

Prospective franchisees can benefit from our expertise in identifying legal risks and liabilities and negotiating the best deal with the franchisor. Existing franchisees can also benefit from our experience in expanding their franchise holdings, resolving disputes with a franchisor in the context of applicable franchise laws, or in negotiating an early end to a franchise relationship.

Industry Experience: Preparation of franchise agreements and disclosure documents, trademark and copyright registrations, formation of corporate entities, regulatory compliance issues, international expansion, dispute resolution through mediation, arbitration and litigation, review of franchise agreements, disclosure documents, franchise manuals and advertising.

If you’re considering seeking advice from counsel, here’s what we suggest you keep in mind:

  • If you’re a franchisor, you want legal counsel that understands federal and state statutes and regulations governing franchise offerings and franchise-relationship issues, such as renewals, terminations, and transfers of franchises.
  • You also want legal counsel that is experienced in litigating, mediating, and arbitrating franchise disputes.
  • If you are investigating the purchase of a franchise, you want expert advice on analyzing franchise disclosure documents, negotiating franchise agreements, and handling other corporate, real-estate, and employment issues.
  • If you are an existing franchisee, you want legal counsel with experience in handling relationship issues with franchisors, such as modifications, terminations and franchise disputes.
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