Your local franchise contract law attorney in Chicago will stress how vital agreement negotiation remains within the world of franchising. Disclosure document complexity isn’t necessarily meant to confuse the average person; though that is often the result. To add to that, some franchisors will try to convince you that their contractual elements are impenetrable, but this is far from the truth. Business is booming in the international hub of the Midwest – deep franchise related knowledge will put you ahead of the curve as you seek out a great investment.
Construction and/or Development
It may go without saying, but the first step, of course, relates to the almighty dollar. Make sure to clarify costs associated with storefront progression and maintenance. The financials should be carefully laid out in the franchiser’s disclosure document. One important question to ask from the beginning is: who is responsible when costs run over budget? Realizing the contingencies is just good business.
Contract Caveat
Some agreements come with certain exclusive clauses. One of the most popular requires the new franchisee to maintain relationships with previous suppliers, despite already having an established network. There could be a prior track record of excellence, but interruptions occur and there are many options on the market.
The Liability Cap
Depending on the strength of your connection with the franchisor during due diligence, you may or may not have a limit on your personal guarantee. In this way, personal liability decreases significantly.
Looking for a franchise contract law attorney in Chicago? Look no further than Liss & Lamar PC, the well-established law outfit. Contact the firm at us today.
