Many hard-working men and women dream of owning their own business and believe that purchasing an established or new franchise is their ticket. At times, the franchisees fail to read or understand the fine print in the contracts drafted by the franchisers for their benefit and protection. Though federal and state laws give franchisees certain rights and may require particular disclosures, often a prospective franchisee may not fully appreciate their significance. A prospective franchisee should consult with an attorney, thoroughly review the contract and obligations, pore over the disclosures, and understand the commitments that he or she is undertaking. Prospective franchisees often give up important rights and remedies when they sign on the dotted line. Therefore, before investing all your assets with a franchiser, talk to a lawyer. This conversation may be one of the most important ones of your life. Don’t accept the promises at face value, and understand that franchisers prepare contracts for you to sign for their benefit and protection, not yours.
If you have already purchased a franchisee and promises of returns and profits have not materialized, talk to a lawyer.
