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2023 Franchise agreements: What you need to know before your client signs, part 1

Total Credits: 1.2 Self Study

Practice Area:
Business & Corporate |  Commercial / Collections / Consumer
Audio and Video


Recording available after original program date, 3/14/2023.

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

Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics, elimination of bias or Kansas credit.


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