Huck Bouma PC Attorneys At Law

Call 630-221-1755

Huck Bouma PC Attorneys At Law

630-221-1755

Creative And Strategic Legal Guidance

Helping Franchisors Fulfill Their Legal Requirements

As a franchisor, you have many federal and state legal obligations to follow when starting and maintaining a franchise. Existing franchisors or individuals looking to start new franchises or maintain a franchise program can benefit from an ongoing relationship with experienced legal counsel. A franchise law attorney can help ensure a company is structured to optimize its growth potential. The right lawyer can also position a franchisor to avoid the potential for liability.

Attorneys in the Franchise Law Practice Group of Huck Bouma have over 30 years of experience in helping franchisors meet their franchise law requirements.

Nationwide Franchise Legal Support

At Huck Bouma, experienced attorneys help franchisors nationwide fulfill their legal obligations. Some of the more complex laws that require legal knowledge include:

If you have concerns regarding your Franchise Disclosure Document, franchise agreements, franchise registrations, franchise compliance and training, managing your franchise relationships, or any other area of franchise law, the attorneys in the Franchise Law Practice Group of Huck Bouma has your back.

Full-Service Franchise Law Firm Working for You

The legal protections you make now and keep in place can help to protect your franchise company from liabilities and future litigation. The franchise lawyers at Huck Bouma will draft franchise agreements that work for and protect your franchise system and will counsel you and keep you informed so that you can make the legal decisions in the best interest of your franchise system. Ongoing counsel to address your current and long-term business needs can clarify issues related to:

Franchise lawyers know that maintaining a franchise is an ongoing effort. You can trust Huck Bouma to keep your Franchise Disclosure Document updated, keep your franchise registrations current and be available to provide ongoing consultation, while keeping you informed on any franchise law developments.

Helping Entrepreneurs Expand Their Focus

A big part of owning a franchise company is watching it grow. If you are looking for help developing and expanding your franchise program, a variety of legal services can help you take your franchise to the next level. Some common ways this is done is through initiatives related to:

When faced with preparing the contracts and disclosures for these programs and obtaining separate franchise registrations when necessary, having a knowledgable attorney is imperative.

‘As A Franchisor, How Can I Comply With Legal Regulations?’

Maintaining legal compliance is critical to the success of your franchise. Do not wait until a violation has occurred to contact an experienced franchisor attorney. Protecting your franchise program and your investments is a top priority.

There are many Federal Trade Commission requirements and state franchise laws and regulations that franchisors must comply with in order to sell franchises. The franchise attorneys at Huck Bouma stay abreast of laws and regulations relating to the offer and sale of franchises, registration and disclosure, and franchise termination, transfer and non-renewals and advise you of updates. This helps you comply with day-to-day business operations. Do not make important decisions without the legal guidance of attorneys you can trust.

Annual Franchise Renewals And Franchise Disclosure Document Updates

A franchise organization’s Franchise Disclosure Document (FDD) must be accurate and complete and must be updated on at least an annual basis, and more often if material changes in the information in the FDD occur during the year.

Under the federal franchise law, franchisors have 120 days after their fiscal year ends – meaning those with a December 31 fiscal year end face an April 30 deadline – to complete the annual FDD update process and issue an updated FDD. During those 120 days, the franchisor must work with their outside auditors to ensure that their year-end audited financial statements are ready by the end of the 120 period so that they can be inserted into the updated FDD. The franchisor must determine if they want to implement any new or revised fees, contractual requirements, specifications or policies for the franchise system that must be reflected in the updated FDD. They must then relay those changes to their franchise attorney along with other updates to the information currently in their FDD so that an updated FDD can be properly prepared.

If an updated FDD is not issued by the 120 day deadline, a franchisor must stop selling franchises. The franchise attorneys at Huck Bouma work with their franchisor clients to meet the updating deadline to avoid any down time during which franchise sales cannot be made. They understand that franchise companies are in the business of selling franchises.

In addition to updating the FDD, Franchisors who register to sell franchises in the states that require the registration of franchises need to renew those registrations on an annual basis. Renewal applications are typically filed once the franchisor’s FDD is updated. In many franchise registration states, the franchisor will not be able to sell franchises while the registration renewal application is pending so it is critical to work with franchise attorneys who know the state registration requirements and how to properly update the FDD to minimize the dark period during which franchises can’t be sold in registration states.

Our franchise attorneys at Huck Bouma have the knowledge and experience plus systems and procedures in place to help make the FDD updating and franchise registration renewal process as efficient as possible and done on a timely basis.

Buying Or Selling A Franchise System

The entrepreneur who first established a franchise company may have an intended exit strategy of selling the franchise system. A successful franchise company may be approached by other companies wanting to acquire the franchise system they have developed. Maybe the leadership team at a successful franchisor aspires to develop a greater market niche by acquiring similar businesses that have not yet reached the scope and success of their company.

Selling a franchise system requires special consideration. The franchise merger and acquisition legal due diligence process is much more complex than the process involved when simply purchasing a standalone business with one location and a handful of employees.
When looking to acquire another franchise system, reviewing contract terms, protected intellectual property, the level of success of each franchised unit and the franchisor’s relationship with its franchisees will be part of the process. The time invested in due diligence increases substantially with the size and complexity of the acquired organization.

For those listing a franchise system for sale, planning an exit strategy is of the utmost importance. This will include making sure that your franchise documents – Franchise Disclosure Documents and Franchise Agreements and related agreements with the franchisees – are in order and in compliance with law. Whether a competitor or a private equity firm intends to acquire the franchise, accurate disclosures and even transition support may be necessary to facilitate a smooth and profitable transaction.

The franchise attorneys at Huck Bouma are familiar with the challenges of business transactions involving franchise systems and can assist during sales, mergers and acquisitions. Our team of legal professionals can assist with research and planning for a smoother transaction and contract preparation and negotiation for the protection of your interests.

Contact Our Chicago Franchise Firm That Serves Clients Nationwide

Contact Huck Bouma to speak with an experienced franchise law attorney. Based in DuPage County, franchisee clients throughout Illinois and franchisor and subfranchisor clients nationwide turn to the Franchise Law Practice Group of Huck Bouma for experienced guidance. The suburban personalization with big city experience means your franchise gets the attention it deserves.