This is a question that I am often asked. To start, you may be able to change the documents. But even if you can’t, here’s 3 reasons why:
- Changing the legal documents and renegotiating the terms of your franchise agreement is usually overrated. To be sure, there are times when doing so is necessary and makes a big difference. But don’t be mistaken, this is an UNEQUAL relationship. The franchisor has the upper hand, and always will. This, however, does not mean that you should not buy the business. It just means you must be careful. Hence, a real reason why you want a professional experienced in these types of matters to review your documentation.
- Education. Franchise Disclosure Documents and Agreements are long, boring, and filled with legalese. A Good attorney will be able to explain these terms to you in an easily understandable fashion. This will help you make a better decision.
- Questions: Whenever I review franchise documents I always list questions for the potential buyer to ask the franchisor. This is vital to the research process and important to fully understand what you are purchasing.
The reality is, there are many reasons to hire a franchise attorney when buying a franchise. The above reasons merely state three.
If you don’t already know this, though, don’t let me convince you otherwise.
Just remember, I have never heard anyone say: “Geez, I really regret doing my due diligence before investing in this franchise.”