Franchise

ADVISING YOUR CLIENT ON BECOMING A FRANCHISEE: LEAGL ASPECTS Muriel M. Malone I. INTRODUCTION Franchising is a popular business endeavor for entrepreneurs. According to the International Franchise Association (IFA), in 2000 franchisors and franchisees accounted for one trillion in annual United States retail sales. In addition franchising business accounted for forty-percent of all United States retail sales. Not all franchises, however, do well. Many people want to become the next Bill Gates, but many laypersons do …

…in the disclosure statement. If they are not, these matters should cause the attorney and client concern. The lawyer must ensure that the client is not relying on a representation that has not been included in the disclosure documents. The client must be asked if there is anything in particular that was a major part of the client's decision to acquire the franchise, and if so, whether that matter is included in the disclosure agree