Minnesota Attorney Blog : Minnesota Lawyer & Attorney : Aaron Hall : Twin Cities Law Firm : Minneapolis, St. Paul MN : Business Litigation, Personal Injury, Intellectual Property

In Minnesota, a franchise is a popular way of starting or growing a business. Franchises include product and service companies. Special laws have been created to protect business owners buying into a franchise.

Minnesota Franchise Laws

Many states, such as Minnesota, have strict franchise laws. Minnesota has enacted a franchise statute called the Minnesota Franchise Act. Among other things, this statute requires franchisors to register in Minnesota. This franchise registration requirement is similar to such requirements in California, Hawaii, Illinois, New York, and Rhode Island.

Watch Out for These Franchisor Tactics

Like any industry, some people are unscrupulous. Be cautious if a franchisor tries these approaches with you.

• The franchisor says that he won't hold you to the franchise agreement that he wants you to sign.
• The franchisor says you don't need to have an attorney analyze the franchise agreement.
• The franchisor doesn't want you to talk with other franchisees.

When Should I Hire a Minnesota Franchise Lawyer?

In short, if you are planning to enter into a franchise agreement in Minnesota, you should hire a Minnesota franchise attorney.

Most importantly, a Minnesota franchise lawyer will analyze the franchise agreement, explain its provisions to you, and suggest areas to be changed before you sign the agreement.

A Minnesota attorney can help someone contemplating a franchise in a number of other ways:

• A Minnesota franchise lawyer provides legal guidance and advice on whether to franchise or pursue other means of distribution and growth.
• A Minnesota franchise lawyer provides legal guidance and insight on growing your franchise or distribution systems domestically and internationally, and wherever opportunity may be present.
• A Minnesota franchise lawyer provides legal counsel on multi-unit ownership and co-branding of the franchise.
• A Minnesota franchise lawyer provides a variety of transactional, litigation, and alternative dispute resolution services of the franchise.
• A Minnesota franchise lawyer provides representation of area developers and representatives, sub-franchisors, multi-unit and single-unit franchisees, licensees, dealers, distributors, and independent franchisee associations in transactional, litigation and dispute resolution matters.

Other Minnesota Franchise Attorney Services

A Minnesota franchise attorney provides advice and representation regarding a number of franchise law matters:

• Evaluating a franchise agreement
• Cure periods
• Indemnification
• Minnesota Franchise Act
• Arbitration vs. litigation
• Equitable remedies
• Accidental franchises
• Illegal franchise agreement provisions
• Franchisor's failure to register the franchise
• Terminating a franchise agreement
• Negotiating a franchise contract provision
• Franchise ownership disputes (fights among owners)
• Buying or selling a franchise

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Litigation can be an intimidating prospect. The court system can be confusing for people who are unfamiliar with it. There are several procedural rules and time limits that you must follow. Litigation can also be expensive. There are a number of different kinds of fee agreements, depending on your situation. Do not let the fear of legal costs keep you from consulting an experienced lawyer.

Here is a terminology break down that may help to better understand some of the various fee agreements:

Hourly with Retainer

Probably the most common attorney’s fee agreement involves an hourly rate. The attorney is paid a set amount per hour of work and usually tracks time in tenths of an hour. The amount billed per hour varies greatly depending on a person’s experience, expertise, and qualifications. It also may depend on the size and complexity of the case involved.

A retainer is a set amount paid in advance for legal fees. The amount is held in a trust fund. As you incur legal bills, the lawyer withdraws the amount owed from the prepaid retainer. If you fire the lawyer or settle the case and there is still money left from the retainer, the lawyer must return it to you.

Contingency

In a contingency fee arrangement, the lawyer accepts a percentage of the final recovery for his fee rather than a set hourly amount. The lawyer usually assumes the risk of losing - meaning if there is no recovery, the attorney does not get any fees. The percentage for the contingency fee may vary from 20% to 40%. Often the percentage is dependent on when the case resolves, reflecting the amount of work the attorney has to put in to resolve the case. Whether an attorney will accept a case on contingency depends significantly on the level of risk involved and likely recovery. Usually only personal injury cases are handled on a contingency fee basis.

Flexible Fee Structures

There is no question that litigation can be very expensive. That is why it is crucial to find an attorney you trust to keep your goals and budget in mind. The experienced lawyers at Twin Cities Law Firm will work with you to find a litigation strategy and budget that fit your needs. You do not have to sacrifice quality representation.

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With the advent of the internet, it is easy to find hundreds of samples of legal forms like contracts online for free. Some wonder why they should spend the money hiring an attorney to draft a partnership agreement, for example, when they can just as easily fill in the blanks on a form. If you end up in litigation later, you may regret that decision.

A well drafted contract is key to the successful operation of your business and your business relationships. A contract provides the basic “rules” for operation. A Minnesota lawyer can help you craft a contract specific to your situation that takes into account how Minnesota courts interpret contracts, how Minnesota laws regulate contracts, and what standard business practices are in the community. An attorney has the experience to predict potential problem areas and draft the contract to avoid such problems.

Potential Contract Problems

One of the most common problems with contracts is the use of vague, ambiguous, or unclear language. Sometimes contracts are so laden with “legalese” that it is virtually impossible to tell what the parties actually intended. This is not an effective contract. Perhaps more importantly, it is one that will be difficult for a court to enforce. Courts will construe unclear language against the party who drafted the contract. Needless to say, that can have expensive consequences for unwary small business owners.

Another problem is the absence of important provisions. How do you terminate the contract? How do you assess damages for breach of contract? Can the contract be assigned? These are just a few considerations that may not appear in a sample form contract. A Minnesota contract attorney can discuss options with you to make sure you cover all foreseeable situations.

Litigation

Sometimes even the most carefully crafted contracts become the subject of litigation. It is important to choose an attorney with the experience and credentials to guide you through litigation as efficiently and cost effectively as possible.

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Perhaps you have seen the commercials on TV with the people yelling “It’s my money and I want it NOW.” The ads are targeted towards people who are involved in personal injury lawsuits who are expecting settlements. They also apply to people who have what are called structured settlements - basically meaning that your settlement is paid out over time like an annuity.

Why Lawsuit or Judgment Settlement Loans are a Bad Idea

If you are tight for money, these loans can seem very appealing. You may be able to get some money for your claim before you have even reached a settlement. Sometimes the companies promise that if you do not reach a settlement, you will not have to repay anything. If you have a structured settlement with a long term payment plan, it can also be tempting to take money up front and trade your long term interest.

Stop! Don’t do it!

Here’s an example from a prior client: she took a dangerous medication that caused her to have a dangerous blood clot. She filed a claim against the drug manufacturer. Shortly after she filed the claim, she got a loan from one of these companies for $9,000. The loan was based on her expected settlement. Two years later we reached a settlement with the drug company for $75,000. The loan company gave us an amount our client owed on that $9,000 loan from two years earlier — $32,000!!! The amount of her debt had more than tripled because of how they calculated the interest on the loan. After repaying the debt along with attorney’s fees and expenses, our client received very little money.

What about a structured settlement? You receive pennies on the dollar for the value of your settlement. The loan company gives you a reduced value for your settlement and then it receives the full value of the annuity.

Work with a Lawyer you Trust
If you have a personal injury claim, contact a lawyer you trust. They will help you through the process and negotiate a settlement to meet your needs - or go to trial. It is important that you trust your lawyer to advise you not only about your claim, but also about any settlement or its terms. Most lawyers can help direct you towards financial planners that can help you with settlement terms. They will not encourage you to take any sort of loan on your settlement. 

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Minnesota Auto Insurance Law

Minnesota requires all drivers to maintain a minimum level of liability insurance in order to operate a vehicle.  Most people do have at least the minimum coverage of $30,000 and many have even more coverage.  What is the benefit of requiring insurance?  Car accidents are an inevitable part of driving.  No matter how careful you are, you may still be the victim of an accident.  If everyone has insurance, your basic injury and property damage claims should be paid.  But what happens if you are hit by one of the people who does not have insurance?

See what the coverage is for uninsured/underinsured motorists after the jump.

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