Franchise Law
If you are considering purchasing a business franchise, or if you have developed a business system for franchising opportunities, contact the Alpharetta, Georgia, law firm of Briskin, Cross & Sanford, LLC.
The firm’s attorneys offer extensive knowledge and experience, assisting both franchisees and franchisers. We represent clients throughout the Greater Atlanta area, including Fulton County and Cobb County. Our firm provides comprehensive business law services to clients throughout the region.
The Franchisee: Buying A Franchise Business
Many franchise operators are first-time business owners. Briskin, Cross & Sanford, LLC, counsels franchise buyers through the entire startup process, including business formation and consulting on employee matters, regulations, taxes and other business issues.
Our attorneys can also negotiate the terms of the franchise agreement. The franchisee must adhere strictly to terms of the contract regarding the product or service itself, as well as specifics about the use of the franchised name, signage and marketing materials.
Briskin, Cross & Sanford, LLC, has counseled clients in purchasing every type of franchise, including food service, retail, cleaning services, auto transmission shops and gas stations, real estate and publications. We will advise on any franchise opportunity you may be contemplating.
The Franchiser: Meeting All Requirements
Franchising a business can be rewarding and lucrative, but the franchiser must fulfill many requirements to show the business is legitimate and profitable.
As of July 1, 2008, the Federal Trade Commission requires each franchiser to provide a Franchise Disclosure Document (FDD). The FDD replaces the Uniform Franchise Offering Circular (UFOC), which previously was required. This document must describe in clear terms the franchise opportunity, the business and the owners of the franchising rights, and disclose all likely expenses incurred by a franchisee. The FDD must be updated annually (the franchiser may be fined $10,000 per day by the FTC if the FDD is not current).
Briskin, Cross & Sanford, LLC, assists clients in drafting and updating the UFOC. We also draft appropriate franchise agreements regarding use of the franchise name and logos, use of the business system, requirements and restrictions for marketing, and dictated procedures concerning the sale of the products or services pursuant to the franchise agreement.
For those who are not sure whether the business opportunity is a franchise, our firm provides counsel regarding relevant state and federal franchise laws, including the impact of the fairly obscure Georgia Sale of Business Opportunity Act, which functions in a manner similar, but not identical, to the FTC franchise regulations.
Commonly Asked Questions Regarding Franchise Law In Georgia
We aim to provide clear and supportive guidance for those exploring franchise opportunities in Alpharetta and Greater Atlanta. We understand this can be a complex process, and we’re here to help you navigate it with confidence.
Is franchise registration required in Georgia?
In Georgia, franchise registration is not a requirement. However, it’s vital to note that federal laws, particularly the Federal Trade Commission (FTC) Franchise Rule, govern franchise sales. This rule mandates franchisers to provide a franchise disclosure document (FDD) to prospective franchisees at least 14 days before any agreement is signed or any payment is made. While Georgia doesn’t require additional registration, reviewing the FDD thoroughly is crucial, and consulting with a legal professional can offer invaluable insights.
What laws specifically protect franchisees in Georgia?
While Georgia does not have specific franchise laws, franchisees are protected under general business laws and the federal FTC Franchise Rule. This rule ensures transparency and fairness by requiring franchisers to disclose essential information about the business, including financial performance and legal obligations. Additionally, franchisees may find protection under Georgia’s Fair Business Practices Act, which prohibits deceptive practices in consumer transactions.
How important is the Franchise Agreement, and what should I look for?
The Franchise Agreement is the cornerstone of your franchise relationship and is critically important. It outlines the rights and obligations of both the franchiser and franchisee. When reviewing this document, pay close attention to terms regarding fees, territorial rights, duration, renewal conditions, and termination clauses. Understanding these elements can prevent future misunderstandings and disputes. It’s advisable to have a franchise attorney review the agreement to ensure your interests are safeguarded.
What due diligence steps are recommended when evaluating a franchise?
Conducting due diligence is a vital step in the franchise evaluation process. Start by carefully reviewing the FDD and seeking clarification on any confusing aspects. Speak with existing and former franchisees to gauge their experiences and satisfaction. Analyzing the franchiser’s financial health and market reputation can also provide valuable insights. Additionally, visiting franchise locations and assessing the company’s support system can help you determine if the franchise aligns with your expectations and business goals.
Contact the Alpharetta franchise law lawyers of Briskin, Cross & Sanford, LLC, if you want to buy a business franchise, or if you are franchising a business system. Call 770-609-4457.