Illinois Franchise Attorney
Becoming a franchisee is an exciting endeavor that allows business-minded individuals to grow companies using established processes, known products, and recognizable brand names. Franchisees are also allowed to use trademarks, proprietary knowledge, and leverage proven business practices instead of starting from nothing. As exciting as this can be, it is imperative that franchisees work with an experienced business lawyer who fully understands the details involved with franchise opportunities.
Motiva Business Law has helped countless franchisees, just like you, remain aware of their rights and get the most out of their opportunities. Our Firm will help you understand the FDD and franchise agreement so you can make an informed decision before investing tens of thousands of dollars into a franchise. Our franchise lawyers are committed to listening to your goals and ensuring your business is a success.
Motiva Business Law Offers
When is the Best Time to Work with Franchise Attorneys?
The best time to involve our franchise attorneys is when you receive the FDD (Franchise Disclosure Document). Our Firm likes to get involved early in the process so we have ample time to review and negotiate the documents before the franchisor’s deadline (if the franchisor has one). Once we are engaged, we can review documents such as:
- Franchise Agreements
- Franchise Disclosure Documents (FDD)
- Multi-Unit Franchise Agreements
- Area Development Franchise Agreements
Benefits of Working with a Franchise Lawyer
You may be under the assumption that franchise agreements are non-negotiable, but that is a myth. Our Firm is here to help you understand legal jargon and franchise law. After we review your agreements, we can help you negotiate so the transaction better suits your long-term goals as a franchisee. Franchisees, like you, have many legal rights. We can help make sure a franchisor is complying with its duties to you. We are here to serve as your advocate and trusted legal resource.
Multi-Unit Franchise Attorneys
Opening one franchise is tough work, but buying and overseeing multiple franchises not only requires extensive business expertise, but also the right legal team. Motiva Business Law has worked closely with multi-unit franchise owners in both Illinois and Florida. Our Firm can help you navigate complex legal decisions, assist with reviewing key agreements, and ensure you have peace of mind. Our Firm understands that when you purchase multiple franchises, you have a big vision. Our goal is to make sure that vision has the legal foundation you need to continue to expand and scale your business.
Understanding Franchisee Exemptions
Franchisees who are more experienced have an exemption related to franchisor disclosure. This exemption applies to franchise transactions with large franchisees where the franchisee (a) possesses a net worth of at least $5 million (as of July 1, 2020, this monetary threshold of $5 million had been increased to $6,165,000 by the FTC to account for inflation), and (b) the franchisee has been in business for at least 5 years.
There is also an exemption in place for large investments. This exemption is available to franchisors when the franchisor and potential franchisee have relatively equal bargaining power and business expertise. If the potential franchisee can afford a large investment, then it is more likely that the potential franchisee is experienced in business and has the resources to protect itself. In Illinois, the initial investment amount must be $1 million. Additionally, franchisors must submit certain information to the Attorney General to apply for the exemption.
If you have questions about the aforementioned exemptions, contact Motiva Business Law to schedule a consultation with our franchise attorney.