Franchise lawyer review before you sign
Free to ask. One franchise attorney gets your request and can check the franchise disclosure document (FDD) and agreement with you.
Your details
A franchise lawyer can sit down with the franchise paperwork before you put your name on it. You get to see what you are agreeing to while there is still time to walk away. The Federal Trade Commission suggests speaking with a lawyer and an accountant ahead of buying a franchise.
Your two weeks with the disclosure papers
FDD stands for Franchise Disclosure Document. It is the set of papers every brand must hand you before you pay or sign. The federal rules say you must have it no fewer than 14 calendar days ahead of any signature or payment. That is the minimum the law requires, not a deadline for signing.
Think of those 2 weeks as your window to get the papers properly read. Signing locks you into whatever terms are in there. Fill in the short form the moment the document lands in your hands, so a lawyer has time to review it with you.
Finding a franchise attorney near you
There is no need to hunt for a lawyer yourself or ring around offices. On the form you just name the state where you want to open. From there your request reaches one franchise attorney, and they get in touch with you.
Nothing is charged for the form. Sharing a phone number and a brief word about the brand you are considering is your choice.
Franchise agreement review: what gets checked
Before you sign, a franchise attorney can read both the FDD and the franchise agreement alongside you. A big focus is Item 17 of the FDD, a table summing up the agreement's key terms, as the federal rule lays it out. It deals with renewal, termination, handing the business over and how disputes get resolved.
These are the terms that matter when you want to carry on, walk away or sell, or when you and the brand end up in a disagreement. Knowing your position on each of them before committing is worth a lot. The full document is explained on our franchise disclosure document page.
Passing the business on one day
Item 17 includes rows about when the brand has to approve you transferring the business to a new owner. Whether that approval comes, and the conditions tied to it, can shape any future sale.
Another row covers the brand's right of first refusal, meaning the brand gets the first chance to buy your business when you choose to sell. Planning to sell at some point, or hand things over to family? Ask the attorney what those rows say about your particular brand.
Will an exclusive territory shield you from every rival?
Not necessarily. An exclusive territory means the area the brand reserves for you. The FTC cautions that this protection has limits when it comes to all forms of competition.
The real answer sits in the exact words of your paperwork. An attorney reading that wording with you can show you what the protection actually covers ahead of signing.
Looking at the numbers as well
On this site, every brand page pulls its numbers from the brand's most recent FDD filed with the Minnesota Department of Commerce registry. On every page you will find:
- what it costs to open (Item 7)
- the initial franchise fee (Item 5)
- the royalty, meaning the slice of sales or set sum paid to the brand, typically weekly or monthly (Item 6)
- whether sales or earnings figures appear (Item 19)
- how many outlets exist (Item 20)
Keep in mind that sales or earnings figures tend to be sales, not profit. The side-by-side tool lets you line up 2 or 3 brands for comparison. You then have solid numbers in hand when you meet the attorney.
Why raise questions ahead of signing?
Once you have signed or paid, the terms are fixed and a review can only tell you what they mean. Up until that moment, you can still take time to understand the agreement and make your own call. Share your details now so a lawyer can read your FDD and agreement with you while the choice is still open.