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Franchises often seem to clients like vehicles to assured success, but they are risky ventures.
The task for lawyers advising clients about franchises is to counsel them about setting reasonable expectations and help them understand the practical obligation of franchise agreements. This is no easy task because these agreements are a complex arrangement of restrictions, fees, operational requirements, intellectual property protections and reporting periods. But understanding how these agreements work – and the range of what's negotiable and what's not – is essential to client success.
This program provides a real world guide to the framework of franchise law, practical due diligence of franchise opportunities, and reviewing and negotiating the most important provisions of franchise agreements.
Part 2 topics include:
- Major economic and non-economic provisions in franchise agreements
- Determining what's truly negotiable – and what's not
- Scope of territory – rights within in it and the opportunity to expand
- Tiers of fees, royalties and marketing expenses
- Operating standards and covenants – and negotiating for local modification
- Transfer and exit issues when a franchisee wants out