Arizona Franchise Lawyers, Offices in Mesa & Scottsdale
As owners and representatives of small businesses ourselves, we, the Arizona business attorneys at Denton & Peterson, have experienced many of the complexities that are part of operating a business.
Top-Rated Arizona Franchise Attorneys
Franchising is a complex area of law. There are both opportunities and dangers for both the franchisor and the franchisee. Franchisors are required by law to fully inform prospective franchisees about the franchise and franchisor, using a Franchise Disclosure Document (“FDD”). If you are franchising your business or looking to buy a franchise, an experienced franchise attorney can assist you through the process. A franchise attorney can help you review already-drafted franchise documents, or prepare the necessary franchise documents, depending on your franchise needs.
Preparing the Franchise Disclosure Document
In our initial meeting with prospective franchisors, we address most of the critical issues for the start-up franchisor, including the structure of the proposed franchise. We help clients determine what type of franchise they will offer – unit franchises, area representation franchises, or some other type of franchise structure. We use our proprietary questionnaire and initial meeting with our clients to discuss their goals and objectives. After the initial meeting, we then draft the appropriate documents in accordance with federal and state laws.
The Mesa attorneys at Denton Peterson are experienced in drafting franchise disclosure documents. We walk our clients through the disclosure requirements. The franchise disclosure document (FDD) includes 23 items or sections and is a lengthy document. Some of the information required in the FDD is the litigation history involving the franchisor or its officer, disclosure of parent and affiliate companies, initial and ongoing costs of the franchise, training and advertising information, disclosure of current and former franchisees, financing offered by the franchisor, and financial information with audited financial statements. The FDD also includes several exhibits including sample franchise agreements, the table of contents for the operations manual, financial statements, and other sample agreements. We also advise clients about making financial representations in the FDD and the added risks of doing so. We get to know our franchise clients throughout the process in order to make the correct disclosures about their business.