When it’s right, franchising can be the ideal business vehicle

On Behalf of | Jul 10, 2017 | Business Formation & Planning |

Diverse businesses across Southern California contemplate and sometimes pursue commercial activities across a nearly limitless universe of potentially profitable opportunities.

And proven business and commercial law attorneys help them explore those opportunities wherever they emerge, crafting sound legal strategies that both minimize risk and promote optimal outcomes.

On any given day, commercial entities in the Los Angeles metropolitan area or elsewhere in California are exploring or moving ahead on complex and multi-layered business deals. As we note on a relevant page of our business law website at the well-established law firm of Larson & Gaston, the terrain that marks business challenges and opportunities is truly vast.

For example, company principals might have their collective eye squarely fixed upon an asset purchase or sale transaction. Or perhaps corporate energies are being centrally applied to a merger and acquisition, the purchase of real property, a commercial lease, a buy-sell agreement or other matter.

For select business entrepreneurs and owners in California and nationally, that “other matter” can be due contemplation of a franchising opportunity, from the perspective of a franchisor or franchisee, respectively.

Franchising certainly doesn’t make sense in all commercial contexts, but there are solid — and many — reasons why it can be a logical business form to pursue in some instances. Some industries frequently see employment of the franchise model, like food and beverage outlets (think McDonald’s, Subway, Taco Bell and, easily, a score of other big-name brands), financial services companies, pet-care stores, hotels and many other business realms.

Unsurprisingly, franchise-related negotiations and agreements can be marked by a fair degree of complexity. As noted in one overview of franchising law, franchising forms and documents “usually are written in thick ‘legalese’ and can be [best] interpreted by an attorney.”

A proven business lawyer will also be sure to focus closely on state laws, which closely govern franchising opportunities, as well as matters relating to financing, royalties and negotiated prerogatives and restrictions.

In select instances, franchising can be an eminently viable business model. Timely and proven legal input can materially assist company principals evaluating how to best exploit opportunity through the franchise form.

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