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Franchise Agreements: What Are They?

Before signing a franchise agreement, it is helpful to clearly understand what it obligates you and the franchisor to perform. The agreement must be tailor-made to meet the needs of both parties.

If you are developing your business through franchising, a professionally drafted franchise agreement is crucial to protecting your brand. 

What Is a Franchise Agreement?

A franchise agreement is a legally binding contract whereby a company licenses its intellectual property, business name, branding, and all rights to sell branded products and licenses to another business.

There are three types of franchising agreements:

• Business Format Franchise
• Product Distribution Franchise
• Management Franchise

Franchise Laws in California

The Franchise Investment Law in California generally requires the franchisor to register with the Department before offering franchises.

The Franchise Investment Law also requires that registration disclosure documents and final franchise agreements be issued to prospective franchisees at least fourteen days before the franchise sale.

There must be payment of an agreed-upon fee charged by the franchisor for the right to enter into the business for a franchise to exist. In case of termination of the agreement, the California Franchise Relations Act requires the franchisor to provide the franchisee with sufficient notice, at least 180 days.

How Can a Lawyer Help With the Franchise Agreement?

Brockmeier Law Group is a law firm located in California with an excellent Irvine business attorney who focuses on business, real estate and injury law. The attorney will assist you with all matters concerning franchising. The Irvine business franchise attorney helps clients determine the right fees to be paid to the franchisor and organizes a royalty payment structure.

The best business lawyer Irvine advises and represents individuals and companies on legal matters involving franchising a business, filing and renewing franchise documents, and litigations involving franchisor and franchisee relationships.

The business attorney Irvine can also assist you in negotiating the terms of your agreement and offer guidance on which aspects of the agreement are vague and require additional clarification from the franchisor.

For expert legal advice on franchising, get in touch with Brockmeier Law Group on 310-425-3431.