COURSE DESCRIPTION
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 will provide you with 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.
Day 1:
- Setting and counseling clients about realistic franchise expectations
- Practical guide to reading/understanding a Franchise Disclosure Document (FDD)
- Phases of franchise review – due diligence, negotiation of agreement, and lease work
- Spotting red flags early in the process
- Framework of franchise law and relationship of federal/FTC regulations to state regulation
Day 2:
- 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
Speakers:
Kerrin O'Connell is an attorney from Denver, Colorado who has focused her practice on franchise transactions and intellectual property licensing for Drumm Law. Prior to joining Drumm Law, she served as an associate at a law firm specializing in the development of franchise disclosure documents and franchise agreements for emerging franchise brands, and previously worked in the contracts department of one of the largest real estate franchisors.
Ethan Larson is an attorney from Denver, Colorado who joined Drumm Law after bouncing around in various legal fields, but has now found his home at Drumm Law, where he can put the interests of his clients first. He prides himself on providing quality work for his clients while keeping their costs down. He enjoys getting to know his clients on a personal level, and developing relationships that extend outside of the virtual office.