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do you need a lawyer to buy a franchise no
in fact you don't technically need a lawyer for anything
in any business transaction but I can confidently tell you it's
critically I mean critically recommended
so what should you be considering and why is a franchise lawyer important in
this process well there's two functions they need to serve for you
one function is to modify the franchise agreement
and ensure that your liability is limited
and the rights you think your obtaining that you actually obtain them
that your protected territory is a protected territory frequently i'm told
well
I didn't have a franchise lawyer or I didn't get one because I was told I didn't need
one
I was told there's nothing he or she can do anyway because we can't
modify the franchise agreement well that's a myth
franchise agreements are very commonly modified
we can't change everything but there are strategic modifications
that you do need to consider and very often can make
another important facet of the attorney relationship when you're buying a
franchise
has to do with the due diligence he or she will review
and should be reviewing the FDD and I understand its a large document and filled
with a lot of legal nonsense
but there's also some critical disclosures that a trained franchise
attorney
will identify will speak to you with
you have to remember part of your franchise attorney's role
may be to tell you not to buy a particular franchise
or to alert you to red flags that will indicate to you
this is not the opportunity you would consider so
franchise attorneys are not required but
absolutely recommended and at the very least
consider the information in this University video series
and use some of this information to prepare a list of questions
to discuss with your franchise lawyer or potential franchise lawyer
before you hire them and during the purchasing process