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www.FranchiseLawSolutions.com | 800. 976.4904

© 2013 The Internicola Law Firm, P.C. Not to be reproduced, copied or transmitted without the express written consent of The Internicola Law Firm, P.C. All Rights Reserved.

A step by step process to follow after you have

decided to buy a franchise but before you sign a franchise agreement.

7 Steps to Buying a Franchise

The Internicola Law Firm, P.C.

National Franchise Lawyer  

Charles N. Internicola, Esq.’s

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STEP 1: LEARN MORE ABOUT FRANCHISING

 

What do you need to know?

How do you buy a franchise?

What are your legal

obligations?

What is the Due Diligence

process?

READ: A Complimentary Copy of Mr. Internicola’s Book:  “An Entrepreneurs Guide to Purchasing a Business or Franchise” by clicking here. and visit www.FranchiseLawSolutions.com

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STEP 2:

Build your professional team

Build   a working relationship and work with a qualified franchise lawyer to assist and guide you with the franchise process.

Charles N. Internicola National Franchise Lawyer

800. 976. 4904 cni@BusinessandFranchiseLaw.com

CHARLES N. INTERNICOLA is a recognized attorney, author and speaker who represents individuals across the country when they are purchasing a franchise. Mr. Internicola has developed specialized programs focused on educating and informing his clients about the franchise process and protecting their business interests.

Mr. Internicola has an Excellent rating on Avvo.com—a website that rates, reviews and provides a detailed disciplinary history of lawyers.

Mr. Internicola has also been ranked and named as a franchise “Super Lawyer” for “attaining a high-degree of peer recognition and professional achievement.”

ACTUAL REVIEW: “I commend them on their end to end process…” “I recently dealt with Charles and his team and wanted to take the time to thank them. Brian was a partner through our research and decision to go ahead on a venture franchise and invest. He took the guess work out of the FDD, provided material to understand our risks and signed off on a leveled playing field where we were able to control our success or failure. Clearly they helped eliminate unknown risks. Our first meeting with Charles focused on the "why" and not the "what." Why did we want to invest, why not upsize our house residence instead of risk an investment. That is what we needed, not an attorney who thought an idea was good to run with.”

Mr. Internicola will negotiate on your behalf with the franchisor to obtain the necessary changes to level the

playing field, eliminate ambiguity and add more certainty to your rights as a

franchisee.

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 ur services start with a detailed conference between you and Mr. Internicola, Esq. During your conference call Mr. Internicola will discuss the franchising process and, most important, he will ask questions to get a better understanding about you, your expectations and particular issues or

concerns that you may have. After your call with Mr. Internicola, Esq., we will review, analyze and evaluate the Franchisor’s Franchise Disclosure Document (FDD) and Franchise Agreement in detail.

O

NOTE: During the period of time when we are reviewing the FDD and completing our analysis, Mr. Internicola, Esq. has a number of due diligence steps that he will be asking you to perform. So, while we are doing work, you also will have some important tasks to follow up on. See Step 3.

How we assist you in purchasing a franchise

We will provide you with a comprehensive and customized analysis letter reviewing the FDD and the Franchise Agreement, alert you to issues of concern and make specific proposals regarding franchise agreement modifications and negotiating points.  

Critical issues that Mr. Internicola, Esq. will review (in our comprehensive analysis) and discuss with you include:  

ITEM 1: THE FRANCHISOR, ITS PREDECESSORS & AFFILIATES

ITEM 3: LITIGATION

ITEM 5: INITIAL FRANCHISE

FEE

ITEM 7: INITIAL INVESTMENT

ITEM 9: FRANCHISEE’S OBLIGATIONS

Your Obligations

Inspections and Audits

Renewal Fee

Renewal Rights

Liquidated Damages

Transfers to Family Members

Protecting Your Territory Rights

Restrictive Covenants

Your Sales Obligations

Use of Trade Name

Effect of Rider

Limiting Your Liability

This initial review process typically takes 5 business days for us to complete.  

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STEP 3:

Personal Due Diligence

Take a moment to evaluate your personal and business goals, your personal finances and  why you want to buy a franchise. NOTE: While you are performing Step 3, our team will be working on the completion of your comprehensive review (Step 2). This way we both stay productive and you double check the reasons why you want to buy this franchise.

READ AND COMPLETE

Charles N. Internicola, Esq.’s “Buying a Franchise

Workbook Part I”

ACTUAL REVIEW: “Focus and dedication second to none…” “If you are looking for a lawyer who focuses on Franchising Law, look no further than Charles Internicola. His focus and dedication to a highly complex area of law is second to none. Charles takes the time to answer your questions and address the complex details of Franchise and business law.”

- Ty Wilson, Esq., Atlanta, GA

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STEP 4:

Business Due Diligence

Investigate and evaluate your business

assumptions.

Actively investigate your franchise purchase.

Consult with a competent business accountant and prepare projections – especially if the franchisor made “financial performance representations”.

NOTE: While you are performing Step 4, our team

will be completing your comprehensive review (Step 2). In Step 5 we will be

putting everything together.

Take another moment. Look, Step 3 was all about reflecting on your personal goals and the reason why you want to buy a franchise. However, now you should reaffirm the business reasons why you want to buy a particular franchise. So, Step 4 is all about business due diligence. While we cannot recommend or tell you whether or not a particular franchise is a good investment (as lawyers we deal with the protection of your legal rights) or will be profitable, we nevertheless believe that it is critical that you evaluate your business assumptions.

Speak to existing franchisees.

ACTUAL REVIEW: “I wouldn’t hesitate to call Charles for any franchise law issue.” “I've had the pleasure of working with Charles both professionally and personally and his command of the law is very impressive. Franchise law is not an easy subject to master, which makes Charles' exceptional skills even more impressive. I wouldn't hesitate to call Charles for any franchise law issue.”  

READ AND COMPLETE

Charles N. Internicola, Esq.’s “Buying a Franchise Workbook

Part II”

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STEP 5:

Bring everything together

Steps 1, 2, 3 and 4 should now be complete so now is the time to put everything together and:

1 . Review the specialized FDD Review prepared by Mr. Internicola and his team.

2. Review with Mr. Internicola the Franchise Agreement modifications that he proposes with you.

3. Meet with Mr. Internicola to discuss and review your legal options and recommendations (face-to-face meetings are great, but if you are out of town, then extensive conference calls work very well).

4. Come up with a Negotiating Plan. This will involve a collaborative effort between you and Mr. Internicola.

ACTUAL REVIEW: “…you will be a more educated consumer and be in a better position to make the right choice concerning the hiring of an attorney…” I have been working with Charles on several matters and have known him for about a year. He impresses me as being very knowledgeable about business matters and franchising in particular. Franchising can be an amazingly complex area of the law and he was able to explain it to me, a personal injury attorney, so that I understood. I highly recommend that if you're considering franchising your great idea that you contact Charles, visit his website and read his book before making a hiring decision. You will not be disappointed. Even if you do not hire him you will be a more educated consumer and be in a better position to make the right choice concerning the hiring of an attorney which is a very important decision to make. Good luck with your business. - Benjamin W. Glass, III  

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STEP 6:

Sign your franchise agreements

Your business is now on the map!

NOTE: Sometimes signing a Franchise Agreement may not be the right thing. Sometimes, no matter how much you like a franchise, it may not be right for you. Remember, investing in a franchise is a big decision and your investment goes for beyond your “up-front” fees.

ACTUAL REVIEW: “He makes sure his clients stay well informed…” “Charles goes to great lengths at making sure clients, and potential clients, have all of the information they need in deciding whether to enter into franchise agreements, as well as other business related questions that arise in making such an important decision. I have been involved with Charles in legal discussions as to how best to serve clients and have always been impressed at how focused he is on making sure his clients stay well informed about the legal matter he is working on for them and which is probably the most important thing going on in his client's life at that time. I would recommend any friend or family member who wished to consider franchising a business to hire Charles Internicola.”

- Timothy Miley, Esq., Clarksburg, WV  

If all goes well and makes sense, Step 6 involves signing your franchise agreement.

After negotiating with the franchisor, we will finalize the addendum with the franchisor and you—the franchisee. Your transaction is now complete!  

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STEP 7:

Stay in Touch

This is really not a “step” in the franchise process but rather a request. Once you go forward in

your business, keep in mind that we will always be glad to hear from you and learn how things are going and maintain a long-term relationship.

Also, As a big fan and proponent of

“entrepreneurship” Mr. Internicola, Esq. recommends – absolutely

recommends – that you read the following books.

“Think & Grow Rich” by Napoleon Hill

Probably one of the most important books that you could

ever read. This book is about business success and so much

more.

“Raving Fans” by Ken Blanchard and

Sheldon Bowles

Read this book to understand that “having satisfied customers isn’t good enough... If you really want a booming business, you have to create Raving Fans.”

“The E-Myth Revisited: Why Most Small

Businesses Don’t Work and What to Do About It”

by Michael E. Gerber

Read this book to understand and hopefully avoid the mistake

that 99% of business owners make: They work “in their

business and not “on” their business.

 

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800. 976. 4904 | www.FranchiseLawSolutions.com

© 2013 The Internicola Law Firm, P.C. Not to be reproduced, copied or transmitted without the express written consent of The Internicola Law Firm, P.C. All Rights Reserved.