Garner & Ginsburg FAQ

We want to help you understand your rights and liabilities as a franchisee or dealer, or as someone interested in buying a franchise. We’ve put together these franchise law resources to help you find your way through the maze.

Should I work with a Franchise Lawyer?

There are many questions you should be asking existing franchisees, including how long have you been in business? Have you ever had to not pay yourself a salary or wage? How frequently do you hear from the franchisor’s representatives?

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What are the basics of buying a franchise?

Have you shopped around? Is the franchisor in good financial health? Has the franchisor had experience in your part of the country? Is the business subject to special regulation? Are the trademarks good?

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What are the red flags and warning signs of buying a franchise?

There are several factors that may arise with respect to franchise sales that have proven to be indicators of trouble ahead. No one factor necessarily should stop you from buying a franchise, in and of itself, but if you find one or more of them, you should proceed with caution.

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What questions should I ask franchisees?

There are many questions you should be asking existing franchisees, including how long have you been in business? Have you ever had to not pay yourself a salary or wage? How frequently do you hear from the franchisor’s representatives?

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What questions should I ask at Discovery Day?

Discovery Day or similar events are opportunities for prospective franchisees to learn about the franchise from the franchisor firsthand. At a typical discovery day, a prospect, who usually has already received a FDD and who has passed some preliminary thresholds, visits the franchisor’s headquarters and tours various departments and meets with personnel of the franchisor who interface with franchisees.

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What do I need to know about dispute resolution?

Who will resolve your dispute? How will it be done? Where will it be done? Franchise agreements can contain a dizzying array of confusing terms — “mediation,” “choice of law,” “arbitration,” and so forth.

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What do I need to know about franchise encroachment?

A number of cases have been decided that protect franchisees’ rights to their markets even though their agreements specified that they were only entitled to a “location.” Your rights will depend upon what the entire contract says, upon your state’s law and upon the particular circumstances of your situation.

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What do I need to know about termination and nonrenewal?

Act fast! Your rights depend on many, many different factors – your contract, where your business is located and the circumstances of your particular situation. The sooner you get good legal advice, the sooner you can take action to stop a termination or nonrenewal.

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What do I need to know about fraud and misrepresentation?

Fraud comes in many forms, including fraudulent omission – the knowing failure to tell you something that you should have been told. Not all omissions rise to this level. If you think you weren’t told something that you should have been told, contact us for an evaluation.

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GET SMART. GET HELP FROM GARNER & GINSBURG.