Franchise agreements can be negotiable to a certain extent, depending on the franchisor and the terms of the agreement. Franchise agreements are typically drafted by the franchisor and are designed to protect the franchisor's interests, so some provisions may be more difficult to negotiate than others.

However, many franchisors are willing to negotiate some terms of the agreement, especially if the franchisee has a strong business background or a proven track record of success.

It's important to note that while some aspects of the franchise agreement may be negotiable, others may be non-negotiable or have limits on negotiation. It's always recommended that potential franchisees consult with a franchise attorney or a knowledgeable business advisor to fully understand the terms of the agreement and the negotiation possibilities.

It is highly recommended that you hire a specialized attorney with years of experience in franchising to review your Franchise Disclosure Document (FDD).

An attorney with experience in franchising can help you understand the legal language and the implications of the terms and conditions of the agreement. They can also help you identify any potential red flags or areas of concern in the FDD and provide guidance on how to negotiate the terms of the agreement.

While it's not legally required to have an attorney review the FDD, it's a smart investment in protecting your investment and ensuring that you fully understand the terms and conditions of the franchise agreement.

Houston maintains a strict policy of not having any legal or financial relationships with franchisors or consultants. His loyalty and dedication lies solely with franchisees, and he works exclusively with them. Franchisors and consultants often refer their clients to Houston because they recognize his expertise in the industry and know that he has a reputation for providing valuable guidance and support to franchisees.

The 15-day window is a period of time that is provided by law for the franchisee to review the Franchise Disclosure Document (FDD) before signing the franchise agreement. The Federal Trade Commission (FTC) requires that franchisors provide the FDD to prospective franchisees at least 14 calendar days before the franchisee signs the agreement or pays any money to the franchisor.

During this 15-day window, the franchisee can review the FDD, conduct due diligence, and seek legal and business advice before making a decision to proceed with the franchise agreement. This is an important period of time for the franchisee to carefully consider the risks and benefits of the franchise opportunity and to make an informed decision.

It's important to note that the 15-day window is the minimum time required by law and some states may require a longer review period. The franchisor should provide the FDD to the franchisee as soon as possible to allow for adequate time for review and consideration.

Even if the franchisor has stated that they will not negotiate the Franchise Agreement, it's still a good idea to hire an attorney to review the agreement and advise you on its terms and conditions. An experienced attorney can help you understand the legal language in the agreement and identify any potential risks or areas of concern.

Additionally, even though the franchisor may not be willing to negotiate the terms of the agreement, an attorney may still be able to suggest changes or modifications to protect your interests. For example, they may be able to negotiate more favorable terms for renewal, termination, or default.

Ultimately, it's important to have a clear understanding of the terms and conditions of the Franchise Agreement before signing it. Hiring an attorney can help you avoid any misunderstandings or surprises down the road, and can help ensure that you're fully informed and protected throughout the franchising process.

Whether or not you need to form a Limited Liability Company (LLC) or corporation before signing a franchise agreement depends on the requirements of the franchisor and the laws of your state.

Some franchisors may require that you form a legal entity, such as an LLC or corporation, before you can sign the franchise agreement. This is because the franchisor wants to ensure that you have a legal entity in place to operate the franchise and to protect your personal assets from any potential liabilities.

In addition to the requirements of the franchisor, there may be legal or tax advantages to forming a legal entity. For example, an LLC or corporation can provide liability protection and can offer tax benefits, such as the ability to deduct business expenses.

It's important to consult with an attorney and/or an accountant to determine whether forming a legal entity is the right decision for your specific situation. They can advise you on the legal and tax implications of forming a legal entity and can help you navigate the process of setting up the entity in accordance with the laws of your state.

Whether or not the personal guarantee in a Franchise Agreement is negotiable depends on the franchisor's policies and the terms of the agreement. Some franchisors require a personal guarantee as a condition of the franchise agreement to ensure that the franchisee has a personal financial stake in the success of the franchise.

That being said, in some cases, the personal guarantee may be negotiable. If you are concerned about the personal guarantee or its potential implications, you may want to discuss your concerns with an attorney who is experienced in franchising. They can help you understand the legal and financial implications of the personal guarantee and may be able to negotiate more favorable terms on your behalf.

It's important to carefully review the Franchise Agreement and understand the terms and conditions, including any personal guarantees or financial obligations, before signing the agreement. An experienced attorney can help you navigate the agreement and identify any areas of concern, so that you can make an informed decision about whether to proceed with the franchise opportunity.

Here is what we provide… no hidden fees!

1. A call to take the time to learn about you, your goals, and why you are choosing this particular franchise.

2. Comprehensive review of the Franchise Disclosure Document (FDD), the Agreement you will sign with the Franchisor, and all of its Exhibits.

3. Comprehensive written analysis of your Franchise Documents including Indication of major red flags and critical provisions in the contract client may want to negotiate or consider further

4. Overview and outline of critical provisions in the contract, the client may want to negotiate or consider further, and potential strategies for such.

5. Phone/Zoom consultation (however long it takes- typically 30 min to 1 hour) with the Client regarding all the above.

6. Drafting of the language of an addendum if changes are negotiated with the franchisor.

(basically, everything to get you to the signing of the Franchise Agreement)

Call or text Houston directly and he can help! 919-636-1522

Every section of the Franchise Disclosure Document (FDD) is important, but some of the most important sections include:

Item 3: Litigation History - This section discloses information about any litigation that the franchisor, its affiliates, or its officers and directors have been involved in, including any ongoing or settled legal disputes. This information can give you an idea of the franchisor's legal history and any potential risks.

Item 6: Other Fees - This section discloses information about any other fees that the franchisee will be required to pay, such as advertising fees, royalties, and transfer fees. Understanding these fees is important for assessing the financial obligations associated with the franchise.

Item 7: Estimated Initial Investment - This section provides an estimate of the total costs associated with opening and operating the franchise, including the initial franchise fee, real estate costs, and other expenses. This section can help you understand the financial commitment required for the franchise opportunity.

Item 19: Financial Performance Representations - This section provides information about the actual or potential financial performance of the franchise. Not all franchisors provide Item 19 disclosures, but if they do, it can be a valuable tool for evaluating the franchise opportunity.

It's important to read the entire FDD carefully and seek advice from a qualified attorney and accountant to ensure that you understand the terms and conditions of the franchise agreement and any financial implications associated with it.

It is recommended that you hire a franchise attorney early in the franchise evaluation process, ideally before signing any agreements or making any significant financial commitments. This allows the attorney to review and analyze the Franchise Disclosure Document (FDD) and other legal documents related to the franchise opportunity, and provide you with advice on potential legal issues and risks.

Here are some key points in the franchise evaluation process where you may want to consider hiring a franchise attorney:

Before signing a Letter of Intent (LOI) or any other pre-contractual agreements: These agreements may contain provisions that can have significant legal and financial implications, and it's important to have an attorney review them before signing.

Before signing the Franchise Agreement: The Franchise Agreement is a binding legal contract that outlines the terms and conditions of the franchise relationship

Yes! The FDD has a copy of the franchise agreement, and that is part of my flat fee services.

If the Franchisor sends a separate agreement or makes changes, I am happy to review any and all versions at no cost!

You will always and only work with Houston. He will never have you working with any junior attorneys or other staff, you will have full access to him and his expertise!