Minnesota Franchise Lawyer: Tips to Buying a Franchise

Posted on October 12, 2009 by Aaron Hall

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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Hire a Lawyer to Draft Your Contract Now and Avoid Litigation Later

Posted on October 5, 2009 by Aaron Hall

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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