Getting the Structure Right from Day One
Between signing the franchise agreement and opening the doors, new owners make decisions that are hard to undo later: how the business is owned, who controls it, and what happens if a partner wants out. Getting these right at the start costs far less than fixing them after a dispute.
Forming the Right Entity
Most franchisees operate through an LLC or corporation rather than in their own names. We help you choose and form the entity, coordinate with your accountant on tax treatment, and make sure the franchisor approves the entity and the franchise is properly assigned to it. Franchisors typically require owners to sign a personal guaranty even when an entity is the franchisee, so we explain exactly what that guaranty covers.
Operating Agreements and Partner Arrangements
If you are buying with a spouse, family member, or business partner, the operating agreement is the document that keeps a good partnership from turning into a lawsuit. We draft operating agreements that address capital contributions, management authority, distributions, deadlock, and buy-sell terms, and that fit the franchisor’s ownership and transfer requirements. Single-owner businesses need one too, both for liability protection and for the bank.
Hiring Your First Employees
Your franchisor’s operations manual covers how to run the business, but it does not make you compliant with employment law. We prepare offer letters, employment and confidentiality agreements for key managers, and an employee handbook with core policies, and we walk you through the obligations that come with your first hires.
Contracts Beyond the Franchise Agreement
Many franchisees sign contracts with contractors, equipment lessors, software providers, and local vendors during build-out. We review these agreements so the payment terms, warranties, and termination rights line up with your opening timeline and your franchise obligations.
