OUR LEGAL SERVICES

I. Phase One – Preparing to Franchise

Draft Franchise Disclosure Document, Franchise Agreement, and all associated Exhibits and where appropriate, draft the Area Development Agreement and Ancillary Agreements such as the Employee Non-Compete.

II. Phase Two – The Franchise Sale and After Sale

A) Disseminate Federal Disclosure Document, Franchise Agreement and associated Addendum (as appropriate), to prospective Franchisee with explanation of how to sign each document.  Follow-up call with each prospective Franchisee to ensure any questions about the documents are addressed.  Obtain and verify all documents are executed correctly.  Track and maintain records of pertinent information.  Specifically:

  1. Prepare and send the Franchise Disclosure Document (FDD) to the prospective Franchisee.
  2. Track receipt of the document.
  3. Obtain mandatory “Signed Receipt Page” via electronic signature of all pertinent parties.
  4. Verify the required Federal Law time period is adhered to before execution of the Franchise Agreement. 
  5. Follow-up call with each prospective Franchisee to ensure any questions about the documents are addressed.
  6. Prepare and send the Franchise Agreement and associated addendum with instructions for completion.
  7. Track document delivery, signatures and completion, verifying all documents are executed correctly.
  8. Log all documents into our tracking system and provide Franchisor and Franchisee a digital copy of each signed agreement.
  9. Thereafter provide Franchisor with a spreadsheet of all dates documents were signed, term of each agreement and expiration date for each agreement.

B) Prepare and Disseminating Addendum / Modifications to Franchise Agreement including 30 minute conference call with Franchisor and if requested, Franchisee to discuss proposed addendum.  Transmittal of all documents, obtaining electronic signatures of Franchisee and Franchisor for execution and logging addendum into our tracking system to be accessible by Franchisor when necessary.  Specifically:

  1. Prepare Addendum for approval by Franchisor, including 30 minute conference call with Franchisor and if requested, Franchisee to discuss proposed addendum.
  2. Send Addendum to Franchisee and Franchisor for electronic signature.
  3. Track document delivery, signatures and completion, verifying all documents are executed correctly.
  4. Log all documents into our tracking system and provide Franchisor and Franchisee a digital copy of each signed agreement.

C) Notice to Cure & Default Letters

When the Franchisor has engaged our firm to provide the services in options I and II A above, we will review a Franchisee’s default with the Franchisor, review the Franchise Agreement to set forth the legal default, and review the State Law where the Franchisor is located and where the Franchisee is located to ensure notice requirements are met as well as compliance with State Relationship Laws.  We will send the letter by the required method designated in the Franchise Agreement, track receipt and advise the Franchisor of delivery.  We will post the Notice To Cure letter in Franchisor’s matter reference and make the letter and tracking information available to the Franchisor when requested.

D) Termination Letters

When our firm has performed the services in option II C above, we will review the State Termination Statutes and advise the Franchisor of the State Law requirements including issues to consider before, during and after termination.  The termination letter will then be prepared in compliance with State Law and the letter sent per legal requirements, tracking the letter for delivery, making the tracking information available to Franchisor, filing the letter into the Franchisee’s digital matter and making all information available to Franchisor when requested.

III. Annual Franchise Disclosure Document (FDD) Update / Registration / Renewals

A) Annual Update

The Federal Trade Commission requires every Franchisor to update its FDD annually. We will perform an Annual Legal Review of the critical areas you must as a Franchisor update every year, updating your document and reviewing system changes, modifications and new case law that may affect your Franchise System.  We will then prepare an updated FDD and modifications to your associated Exhibits and Agreements as required.

B) Initial State Registration of Disclosure Documents

There are 14 Registration States that require Pre-Sale Registration and 5 States which have laws requiring a Franchisor to file either a Pre-Sale Registration or request an Exemption From Registration.  Our firm will prepare the necessary documents for Registration, obtain required signatures and file required documents with the State.

Registration States: (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin)

Exemption States: (Florida, Kentucky, Nebraska, Texas, Utah)

C) Annual State Disclosure Document Renewals

The 14 Registration States require your Disclosure Document to be renewed annually and contain all state specific modifications.  When a Franchisor does not timely renew a registration, it can no longer sell in that state.  In addition, the Franchisor must go back through the initial registration process and pay the higher registration fee.  Our firm will track your filing date, prepare the necessary documents for your Renewal Filings, obtain required signatures and file the documents for renewal. 

Registration Renewal States: (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin)

Exemption States: (Florida, Utah)

Monthly Retainer Plans

BASIC PLAN

$500 /month

CONTACT

• Minimum term of 6 months
• Designed for the Start-up Franchisor that needs telephone consultation on day to day legal issues facing a new Franchisor.

SILVER PLAN

$1000 /month with no monthly terms

CONTACT
  • Designed for Franchisors which are growing and need consultation on system day to day operations as well as help in developing a compliance program.
  • Consultation with Amendments to franchise documents.
  • Consultation regarding Franchisee problems and sending Cure letters, and Cease and Desist letters for trademark issues.
  • Advise on legal disputes and assistance in which agreements are needed for the franchise system and suggested changes to incorporate for particular franchise systems.
  • Provide recommendations in your franchise documents resulting from system modifications.
  • Provide recommendations that need to be made as a result of new franchise laws or case law.