Franchise Legal Documentation
Franchise Disclosure Document (FDD)
The Federal Trade Commission requires that clients have an FDD before they can offer franchises. We do not provide legal documents ourselves, but instead always recommend the use of independent franchise counsel. We can refer clients to competent franchise lawyers but we do not participate in legal fees collected by outside counsel, allowing objectivity in our recommendations of counsel.
We engage with legal counsel during the drafting, review and information-gathering process pertaining to legal documentation, but stop short of drafting legal language and advising the client directly as to legal language or other legal issues.
This methodology enhances our overall value to the client. With the client, lawyer and consultant working in unison to create the overall best franchise system, the combined efforts will likely be greater than the individual parts.
We also help clients determine all of the key elements of the offering, and we coordinate all client activities with outside counsel to provide a seamless approach to the development of each franchise program.
To best serve the client, we lend expertise and aid in the creation of more comprehensive, accurate legal documentation by providing insights to competent legal counsel about business strategies, so those strategies may be clearly and accurately communicated in the legal documentation.
Since we typically have knowledge of many different aspects of a client’s franchise system, we can be extremely helpful in ensuring that the legal approaches embedded in a franchisor’s FDD and other franchise agreements are reflected in a franchisor’s operations manuals, day-today operations, franchise sales processes and culture. We are able to provide feedback to both the client and legal counsel, helping to ensure consistency across the entire franchise system.