buying a franchise | The Law Office of Wesley Scott Jones, P.C.

Operating a franchise business is a great way to operate a business provided you begin the process properly and stay compliant with all relevant laws. A franchise business typically comes with a set framework for how the business will be conducted, products or services offered, pricing, and special promotions. Franchisors also give franchisees very specific guidelines for everything from advertising to how services or products are offered to the public. For many, running a franchise business is ideal – they are provided with a business formula with a proven track record of success.

As an attorney for numerous business owners in and around the Wilmington area, Wesley Scott Jones knows that it can potentially be easier and less stressful to operate a franchise as opposed to a solo enterprise. Another plus is the fact that around the country, franchises seem to have a higher survival rate compared to other similar ventures. Having the financial backing and name recognition of an established business certainly doesn’t hurt.

However, starting and operating a franchise business can be daunting, complicated and unnerving. One of the problems that can arise is the iron-clad nature of the contracts that large franchisors want franchisees to sign. What should be the proper term for the contract – 5, 10, 20 years? What kind of Security Agreements, if any, should you be willing to sign in favor of the franchisee? Do you fully understand all of the terms and conditions of the Franchise Agreement and will you be able to comply with all them? Should you operate the new business as a sole proprietorship or under a new Business Entity? That’s why anyone considering a franchise business should discuss his or her plans with a business law professional, like Wesley Jones.

Wesley Jones also has experience with taking a business from private ownership to franchise, including consulting on and drawing up Contracts and all legal paperwork involved in the transaction.

To schedule an appointment with attorney Jones, please give his office a call at 910-256-5800. Initial phone consultations are free. Call now!

The office is located in Lumina Station, just before the Wrightsville Beach drawbridge. The address is 1904 Eastwood Road, Suite 301. Parking is free parking!

Wesley Jones is a Business Law Attorney serving all of Southeastern North Carolina including New Hanover County (e.g. Wilmington, Kure Beach, Wrightsville Beach, Carolina Beach, Landfall and Mayfaire), all of Pender County (e.g. Burgaw and Topsail Beach) and all of Brunswick County (e.g. Bolivia, Southport, Ocean Isle, and Oak Island).

For a small city, Wilmington, NC has an impressive number of franchise businesses. From fast food mainstays to upscale grocery stores, a variety of retailers and service companies, the Port City has proven a profitable location for such operations. Many prospective small business owners choose the franchise route because it usually simplifies the trial and error process and eliminates some of the headaches associated with business start-ups. Additionally, they have the added confidence due to the built-in support a corporate franchise headquarters can provide. However, many do not realize the pitfalls that owning a franchise may present.

As an attorney for the greater Wilmington, NC area, Wesly Scott Jones frequently works with small business and franchisee clients. Wes has walked down this road before and is aware of the legal complexities that owning or investing in a franchise can pose. Wes certainly acknowledges that each case is unique. However, when it comes to disputes within the realm of franchises and franchisees, there are several typical scenarios.

– Competition – Your franchise agreement should mention the limits on the number of franchises that may be established within a given geographical area. In setting yourself up for success, this is a very important detail to consider and confirm.

– Full disclosure from franchisor – As with all laws, this point can vary area by area. Most jurisdictions require franchisors to provide their franchisees with absolutely all of the material facts they know about the business. For example, unresolved legal issues, finances, insurance issues, or anything else that stands to impact the business. Omissions, misleading details, and misinformation, may be against the law and grounds for legal action.

– Breakdown in the support system – Many small business owners are attracted to franchises in the first place because of the promise they hold for ongoing support. All too often, that promised backup disappears after the final monetary obligation by the franchisee is resolved. Wes can review your franchise agreement and see if any violations have been made.

If you’re in the Wilmington area and thinking about starting a franchise, you should be aware of the many legal issues surrounding these types of businesses. Whether you’d like to review a proposal, have questions about an existing agreement or would just like to have a pair of experienced eyes look over whatever is already in place, we invite you to contact the Law Firm of Wesley Scott Jones.

For a free consultation, call 910-256-5800 or complete the form to the right.

OPERATING A FRANCHISE BUSINESS IN NORTH CAROLINA

Starting and Owning a Franchisee Business in Wilmington