Understanding Franchises In Calgary, Alberta
Franchises exist in many forms. The type of agreements, obligations and benefits vary greatly between different franchises. Franchise lawyers help you to develop your franchise ideas from a legal basis. Franchise lawyers also help people who are looking to buy a franchise to understand exactly what it is that they are buying into. Reviewing and understanding franchise agreements and disclosure documents can be very confusing. Also, the question of whether your business is a good fit to be a franchise should be considered with the assistance and advice of a franchise lawyer. The franchise team at Kahane Law Office in Calgary, Alberta are available to help you get the most out of your franchise. In Alberta, franchises are governed by the Alberta Franchises Act. Call now 403-225-8810.
What Is A Franchise?
A Franchise is a business model that is based on systems and templates. A franchisor (the company that creates and owns the franchise) grants a franchise right to a franchisee (the person who will be operating the business). The franchisor sets up a specific business model for selling specific products or services. They create the branding, the marketing and establish how the goods or services will be offered. They set up a detailed, specific process for offering the specified good or service. The license the right to use an entire operating system to the franchisee. The relationship between the franchisee and franchisor are government by a contract called a franchise agreement. This contract is biding on both parties. Above all, you must understand this entire agreement before you sign it.
In addition, a franchisor is required by law to disclosure certain information and documents, on a timely basis, to prospective franchisees before entering into a franchise agreement. This document discloses the risks involved in buying into the business. Unfortunately, many people find properly understanding the disclosure documents difficult.
What Do Franchise lawyers Do For The Franchisor?
Franchise lawyers in Calgary help their franchisor clients to set up their franchise. This includes all aspects of a franchise from start to finish. For example, the type of work required of a franchise lawyer include:
- Incorporating the business;
- Determining if your business is a good fit for a franchise model;
- Set up of franchise structure;
- Franchise agreement reviews;
- Drafting the franchise agreement;
- Finalizing the franchise disclosure documents;
- Drafting all disclosure documentation;
- Negotiate and draft lease agreements;
- Draft service and employment agreements;
- Creating non-disclosure agreements ;
- Drafting confidentiality agreements;
- Consulting agreements;
- Drafting area development agreements; and lastly
- Drafting guarantee and indemnity agreements.
What Do Franchise Lawyers Do For The Franchisee?
When acting for a franchisee, our franchise lawyers understand that the process can be overwhelming. It is very important that you understand you obligations under the franchise agreement. Even small errors sometime include significant impacts to the business. Most important, it is critical to get a franchise lawyer to protect you when buying a franchise. Our involvement includes many aspects of the business. For example, franchise lawyers assist with:
- Review and explain the franchise agreement and disclosure documents;
- Negotiating and reviewing lease agreements;
- Franchise purchase due diligence;
- Acting for franchisee financing; and lastly
- Act for the purchase or sale of a franchise between franchisees.
Why Hire Franchise Lawyers?
In any franchise, there are direct and indirect costs. There are also usually obligations in franchise agreements that a franchisee must know before they agree to buy into the franchise. Our franchise lawyers will go through your agreement so that you know what you must do under the agreement as well as what you cannot do. They also let you know about the costs involved in the franchise. For example, these include any costs “hidden” in or not easily identifiable to someone unfamiliar with franchise agreements. Most important, is understanding. You MUST understand the nature of what you are agreeing to before you sign anything. More information on franchises is available on the Canadian Franchise Association website.
Finding a Franchise Lawyer in Calgary, Alberta
Starting or buying into any new business, including a franchise, is exciting. Many aspects of these type of businesses including confusing and critical components. Always ensure you know both the risks and the requirements before taking a legally binding step. Above all, due to the volume of paperwork involved in a franchise, always retain your lawyer with enough time to properly represent you. The franchise lawyers at Kahane Law Office in Calgary help with your franchise legal needs. Lastly, if you have any questions or need help, feel free to reach us toll-free at 1-877-225-8817 (or 403-225-8810 locally in Calgary, Alberta). At times email is easier for clients. Please email us directly here.