Fort Lauderdale Franchise Law Firm

If you want the freedom to own and control your own business without the general risks and challenges associated with startups, you might benefit from buying into a franchise. Franchises are business arrangements between a franchise manager and an established company or brand. Common examples include popular Fort Lauderdale food chains such as Chick-fil-A, hotels, delivery services, convenience stores, cleaning companies, and even tutoring centers.

Franchising has benefits and drawbacks, and no two franchise agreements are the same. At Trembly Law Firm, our experienced Fort Lauderdale Franchise Law Firm is here to guide you through every step of the franchising process. From identifying the right business for you to reviewing and negotiating franchise agreements, discuss every aspect of your business endeavor with our dedicated Fort Lauderdale franchise law firm by calling (305) 614-8137.

Steps for Starting a Business Franchise in Florida

Some entrepreneurs need the space to control and create their own business endeavors. While we respect this, our lawyers also know that creating and funding a startup isn’t for everyone. Many professionals thrive in the areas of business, consumer, and personnel management but aren’t driven to start their own businesses. Franchising is a great option for those with the skill set and desire to have a business without starting from scratch. Opening a franchise generally requires the following steps:

Step 1: Identify Your Desired Business

You’d be surprised how many Fort Lauderdale businesses are actually franchises. In fact, most of the businesses you passed this week were likely franchised. The first step in deciding to open a franchise is determining what type of franchise you’re looking to start. These generally fall into the following categories:

Financial
Business
Auto
Home services and repair
Food
E-commerce
Convenience stores
Oil and gas
Educational
Cleaning

While general business knowledge will take you far, it’s important to choose an industry you have experience working in. Attempting to franchise a restaurant if you’ve never worked in the fast-food industry can result in poor initial management decisions. Learning as you go isn’t always the best option in populous cities such as Fort Lauderdale. Our attorneys might help match you with the best franchise opportunities based on your experience.

Step 2: Initial Inquiry and Financial Considerations

Every major company handles franchising differently. Some restaurants charge a higher franchising fee upfront but leave you with more money on the back end, while others charge substantially lower fees but limit your transfer and resale options. Restaurants such as Chick-fil-A also require franchisees to work full-time at the location and prohibit passive investments. Our franchise lawyers might help you make initial franchising inquiries and identify appropriate opportunities for your investment team.

Step 3: Meeting Franchising Requirements

Corporate owners need to protect their brands. As such, most franchisors have strict requirements applicable to potential franchisees. You must meet the organization’s minimum requirements to open a franchise, but this does not guarantee approval. Our experienced business and franchise lawyers can prepare franchising offers on your behalf, ensuring you put your best foot forward during the initial pitch.

Step 4: Reviewing the FDD and Franchise Agreement

If the franchisor agrees to your proposal, you will need to enter into a complicated franchise agreement after reviewing certain federal disclosures. This contract generally sets forth your rights and your responsibilities to protect the brand. It might also require you to attend mandatory training and establish each party’s obligations. Provisions typically provided for in the franchise agreement include the following:

Grant: Outlines the nature of the grant itself, such as the right to use a brand name or storefront.
Term: Sets forth the length of the agreement and any automatic renewals.
Fees: Discusses the initial franchise fee, if any, including any required royalty payments and fees the franchisee owes to the franchisor.
Training and Support: Describes what the franchisor owes you, such as marketing and HR support, and your responsibilities to corporate.
Brand Strategies and Operations Manual: The benefit of opening a franchise in Fort Lauderdale is that corporations have likely already developed employee handbooks, operations manuals, rules, and business regulations. These are usually attached to the contract by reference, which means breaching the operating agreement might result in breach of contract litigation.
Termination and Transfer: Describes each party’s right to sell, transfer, or end the agreement.
Dispute Resolution and Damages: This clause sets forth anticipated damages for breach and any dispute resolution mechanisms such as binding arbitration.

Franchise agreements are complicated and lengthy documents often drafted to favor the franchisor. It’s important for Ft. Lauderdale franchisees to obtain independent legal representation during the contract review and negotiation process to ensure they fully understand their rights, responsibilities, and potential financial exposure.

Step 5: Setting Up Shop in Fort Lauderdale

While many law firms provide general franchising advice for national and international businesses, this is where you need a local attorney. Various zoning, property, and local regulations apply to storefronts in Fort Lauderdale, and significant state labor and financial laws might also apply to your industry. If you want to set up a business in the city, you need a dedicated legal team in South Florida.

Step 6: Obtaining Ongoing Legal Support

Though corporate might provide general legal services to certain franchise owners, these attorneys cannot fairly advise you when disputes arise. They work for the franchisor, not your small business. At the Trembly Law Firm, we offer franchisees the opportunity to maintain dedicated outside general counsel on an ‘as needed’ basis. This means we’re here to address all your legal concerns as your business grows.

Unique Aspects of Florida Franchise Law

Florida does not have strict franchise-specific registration laws. Franchisors do not have to register their franchises with the state, although they must file annual franchise exemption notices with the Florida Department of Agriculture and Consumer Services.

Franchisors in Fort Lauderdale must also comply with federal franchise disclosure rules, which require them to provide prospective franchisees with compressive Franchise Disclosure Documents (FDDs). The FTC’s ‘Franchise Rule’ requires franchisors to provide purchasers with material information regarding the potential franchise, including risks and benefits. Mandatory disclosures include, but are not limited to, the following:

Full fee
Financing details
Territory
Trademarks and intellectual property information
Renewals, transfers, and terminations
Information on existing franchises
Financial statements
Contracts
Product restrictions

Do not attempt to review this document on your own. Our experienced Florida franchise lawyers can help you understand the risks and benefits associated with the franchise and ensure any future agreements comply with FTC and Florida law.

Litigating Franchise Disputes

Unfortunately, the FTC’s Franchise Rule does not have a private enforcement mechanism. Only the federal or state government can go after franchisors who violate FDD requirements. Some states have created a private enforcement mechanism for FDD violations and fraud, but Florida is not among those states. There is no private cause of action for failure to disclose under the FDD, but Florida law specifically prohibits certain fraudulent franchise practices.

The Florida Franchise Act

The Florida Franchise Act, Fl. Stat. § 817.416 creates a civil cause of action (option to sue for money damages) if the seller misrepresented your prospect of success or total required investment. It also prohibits efforts to sell or establish more franchises than the market area can sustain. If a seller violated this act, our experienced Fort Lauderdale franchise litigators can demand the return of all money invested into the franchise plus reasonable attorneys’ fees. Section 817.416 is also a criminal statute prohibiting franchise fraud.

Breach of the Franchise Agreement

Once a franchise is established, both the franchisor and franchisee have certain legal obligations. If either party neglects its responsibilities, the other party may file a breach of contract claim in Broward County. These challenging claims must generally be litigated in state court, requiring an experienced FL litigator from the Trembly Law Firm. Whether you need to file a claim for breach of the franchise agreement or retain defense counsel, our dedicated Florida business litigators provide these services and more.

Additional Franchise Services Provided by Our Dedicated Translational Attorneys

Drafting, reviewing, and negotiating transactional documents are the heart of most franchisor-franchisee relationships. Our experienced Ft. Lauderdale business lawyers also provide the following franchise-related services in South Florida:

Drafting: We can negotiate, review, and draft brand reservation agreements, letters of intent, and memorandums of understanding for the purchase of one or more franchises.
Contract Negotiations: Our lawyers will develop, modify, draft, negotiate, and review franchise agreements, multi-unit franchise agreements, master franchise agreements, and related area development agreements in Fort Lauderdale.
FDD Review: Our legal team diligently reviews, drafts, and updates federal Franchise Disclosure Documents to ensure they comply with federal, state, and local regulations.
Compliance: Throughout the negotiation and startup process, our business compliance attorneys ensure that all parties comply with federal and state-specific legal disclosures and regulations, including local property and zoning laws.
Legal Advice: As experienced franchise professionals, our legal team can quickly identify issues and risks in an FDD. We provide sound advice regarding potential red flags during the franchise process to protect you from high-risk, unfair, and potentially fraudulent business endeavors.
Licensing and Asset Agreements: In many cases, franchisees must also enter into certain brand licensing and asset purchase agreements. These agreements involve complex commercial real estate and intellectual property laws.
Filing Financial Disclosures: Our legal staff will file all necessary franchise disclosure and financial documents with Florida regulators.

We provide an array of legal services to prospective domestic and international franchisors and franchisees in Fort Lauderdale. Our full-service franchise law firm is dedicated to seeing Florida businesses grow and thrive. Whether you want to franchise a business or open a franchise for yourself, you can trust the experienced business attorneys at the Trembly Law Firm.

Benefits of Retaining Our Franchise Team

Better outcomes. Better legal strategies. Better organizational responsibilities. Only a few of the ways we differentiate ourselves from other business law firms in Ft. Lauderdale.

Regional Experience

Franchise law nearly always involves local commercial property, occupancy, safety, utility, and tax laws. If you’re looking to open a franchise in Broward County, you need a law firm with experience handling the challenging zoning laws and regulations applicable to businesses in Fort Lauderdale. Our experienced Florida franchise attorneys help both international and domestic companies franchise their businesses locally and support business owners opening franchises in South Florida.

Small Business Focus

As a boutique law firm, no client is too small. We tailor legal services to your business needs and budget. Whether you need help opening a high-volume restaurant or simply have questions about a small franchise contract, we do not overlook any clients at the Trembly Law Firm.

Corporate Versatility

Although we provide dedicated franchising services, our experienced Florida corporate litigators are here to meet all your business needs. We also provide franchise owners and franchisees with legal services for the following:

Reviewing business contracts
Defending against employee litigation
Providing legal advice for human resources
Handling wage and labor disputes
Applying federal disability and anti-discrimination law
Responding to legal complaints
Drafting incorporating documents
Negotiating with partners and investors

From choosing the right franchise for your family to selling your business and retiring, our business lawyers handle it all.

Core Values

We believe all Floridians benefit when small businesses thrive. That’s why we’re for job creators in Fort Lauderdale. Our mission to protect the economy one business at a time is part of the core values we reinforce at mandatory daily staff meetings and quarterly reviews. We don’t just hire any lawyer. We hire legal professionals with a passion for helping companies succeed.

Connect with our Top-Rated Fort Lauderdale Franchise Law Firm in Fort Lauderdale

The Trembly Law Firm has been one of the most consistently rated franchise and business law firms in South Florida for the past five years. This means real clients take the time to provide feedback about the quality legal services we offer in Fort Lauderdale. If you need help franchising your business or opening a franchise, connect with our dedicated business lawyers today by calling (305) 614-8137 or contacting us online.