DESCRIPTION
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
Speaker:
David Gusewelle is an attorney in the Denver office of Drumm Law, LLC, where his practice focuses his practice on franchise and trademark law. Prior to joining Drumm Law, he worked for law firms in the St. Louis, Missouri area, representing businesses and individuals in a variety of legal fields including litigation, real estate, bankruptcy and corporate law matters. Before entering private practice, he worked in real estate for an international petroleum company. Mr. Gusewelle earned his B.S.B.A. from the University of Missouri-Columbia and his J.D. from Vanderbilt Law School.
Disclaimer: All views or opinions expressed by any presenter during the course of this CLE is that of the presenter alone and not an opinion of the Oklahoma Bar Association, the employers, or affiliates of the presenters unless specifically stated. Additionally, any materials, including the legal research, are the product of the individual contributor, not the Oklahoma Bar Association. The Oklahoma Bar Association makes no warranty, express or implied, relating to the accuracy or content of these materials.