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Why should a prospective franchisee use a specialist franchise lawyer?
Q Why should a prospective franchisee use a specialist franchise lawyer to review their franchise agreement before they sign it?A The relationship between the franchisor and franchisee is governed by the franchise agreement and so any prospective franchisee should be clear on the terms of the franchise agreement they are entering into.Franchise agreements are often long and fairly complex documents and it is important that a prospective franchisee understands the extent of their obligations and the practical and legal consequences of entering into one. It is also important that they understand the duties the franchisor will have to its franchisees - for example, what level of initial and ongoing assistance that will be provided. Expert, professional advice is especially valuable if you are not familiar with legal documents or with the concept of franchising. A lawyer specialising in franchising should be able to help you understand the small print of the franchise agreement and highlight those provisions that are common practice in the franchise industry and those that are particularly onerous.Usually, a franchise agreement will be non-negotiable and a specialist franchise lawyer should be familiar with the terms that are industry standards and will not usually waste your time and money suggesting you try to negotiate terms in the franchise agreement with your franchisor that will simply not be agreed.
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