Buying a Franchise? You’re In the Right Place
Buying a franchise is unlike buying any other type of business. While franchisors are subject to various legal restrictions, they still exert substantial control over their franchisees’ operations—despite the fact that the legal and financial responsibility falls squarely on the franchisee. As a result, it is extremely important for prospective franchisees to make informed decisions, and they need to ensure that they are protecting themselves as much as possible.
If you are thinking about buying a franchise, Kit is here to help. Whether you are buying a new franchise from a franchisor or buying an existing location (or multiple units) from a current franchisee, Kit will provide you with a global review and analysis of the opportunity so you can move forward with confidence or walk away if necessary. Together Kit can make sure you are not assuming unreasonable risks, and provide the insights you need to make a reasoned buying decision.
Buying a New Franchise from a Franchisor
Most new franchisees enter the world of franchising by buying a new outlet directly from a franchisor. If you are planning to go this route, you need guidance through all stages of the process, from comparing opportunities and conducting your due diligence to reviewing and negotiating the franchise agreement. Kit can help with the following services:
- Franchise Disclosure Document (FDD) Review – Kit will review your FDD in detail and explain everything you need to know, including outlining what is missing from your franchisor’s FDD and how this may impact your risk and your legal rights.
- Negotiating Franchise Agreement Terms – Franchise agreements are almost universally heavily one-sided in favor of the franchisor. While franchisees can’t expect an even playing field, they can expect to negotiate reasonable concessions that protect them from many unfair situations.
- Franchise Agreement Addendums or Amendments – Oftentimes, the most effective way to negotiate a franchise agreement is by proposing an addendum or amendment. If this makes sense in your case, our franchise law firm will draft a custom-tailored document and address any change requests from your franchisor.
Buying an Existing Franchise from a Franchisee
If you are thinking about buying an existing franchise from a franchisee, the process here is a bit different. Not only must you negotiate a deal with the seller, but you must deal with the franchisor as well. When representing purchasers of existing franchises, our services include:
- Transfer & Assignment Review – Kit will help you address the franchisor’s transfer conditions, review all relevant documentation, and negotiate on your behalf.
- Asset Purchase Agreements – If you will be entering into an asset purchase agreement, Kit will negotiate with the seller to ensure that you are getting everything you need and nothing you don’t.
- Bills of Sale – Our franchise law firm can also assist with drafting and/or negotiating the bill of sale for your franchise acquisition.
Ancillary Business Matters
In addition to handling franchise-specific matters for prospective franchisees, Kit handles ancillary business matters as well. This includes setting up new business entities, negotiating leases (and lease transfers), and addressing other business-related legal needs.
Learn More About How Kit Can Help You Buy a Franchise
If you would like to know more about our services for prospective franchisees, we invite you to get in touch. Please reach out online to schedule a free initial consultation today (by appointment only).