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Houston Franchising Attorney

Starting a new business from scratch can be intimidating, overwhelming, or even impossible for many entrepreneurs and aspiring business owners. For these people, the notion of franchising offers an alternative to starting a business, allowing an owner to "launch" a new venture while depending on the institutional expertise and structure of an existing company. The laws governing franchise businesses can be confusing, which is why you need a skilled Houston franchising attorney to help you navigate the process of opening, operating, and maintaining your business.

At GK Law PLLC, we understand the complexities of running a successful franchise and are prepared to help you one step at a time. Contact our law office and schedule an initial consultation with our top-ranking Texas business attorneys now! 

Why Do I Need a Franchising Attorney in Texas?

There are different benefits and risks associated with joining or starting a franchise. Falling for one of these risks could result in costly lawsuits, franchise disputes, and loss of peace of mind. Our credible Houston franchise attorneys are here to help whether you are a franchisee or a franchisor. 

At GK Law PLLC, we can:

  • Represent the rights and interests of franchisors and franchisees in Greater Houston and throughout Texas.
  • Help you prepare legal documents as a franchisor or negotiate as a franchisee.
  • Provide you with legal advice and answer your questions at any stage in the franchising process.
  • Establish and develop your franchise business and ensure legal protections are in place for the success of your business operations.

Our law firm is committed to keeping your business protected and successful. From the purchase of the franchise to the day-to-day operations, we provide the legal representation you need to avoid franchise disputes and business litigation. Contact our law firm today and schedule an initial consultation with our Texas business lawyers. We anticipate helping you with the legal aspects of your franchising business.

What is Franchising?

Houston franchising attorney

Franchising refers to a business method that involves selling goods or services where one party (a franchisor) allows another (a franchisee) to use its business system and trademark in exchange for a fee. The term "franchise" can refer to the relationship between the franchisor and the franchisee or is sometimes used to refer to the business itself, which the franchisee buys. It is an independently owned business that operates under the brand and business model of a large, usually well-known corporation.

Franchises are a popular way for entrepreneurs to start a business, especially when entering a highly competitive industry such as fast food. One great advantage to purchasing a franchise is you have access to an established company's brand name. A knowledgeable Houston franchise lawyer can help you pursue your goals in the highly complex area of franchising.

Under federal law, a franchise is a written contract where three elements exist:

  • Use of another company's trademark
  • Payment of franchise fee plus a percentage of revenues in royalties to the corporation
  • Significant control and assistance of the operations

What are the Benefits of Franchising?

Franchising has many advantages for both franchisors and franchisees. It removes many uncertainties of starting a business, gives you a leg up on the competition, and provides a support system that you do not have as an independent business owner. A trusted Houston franchising attorney can help grow your business exponentially through franchising.

Brand Recognition

If you start a business from scratch, you would have to build your brand and customer base from the ground up, which would take time. On the other hand, a franchise gives you ready-made brand recognition. It is already a well-known business with an established customer base. Although the franchisor might charge an additional fee for these services, you get the benefit of instant customer recognition as well as ongoing marketing and advertising support.

Buying Power

If you are operating your own business and need to order products or supplies, you would most likely buy your materials at the lowest volume levels at higher prices. But a franchise is backed by the buying power of the corporation, giving you the most advantageous pricing from the start. A lower cost of goods lowers the overall operating costs of the franchise.

Proven Business Model with a Track Record of Sales

Franchises have already proven their business concept, so you have the reassurance that the products or services you will be offering are in demand. When a franchisee buys into a franchise, they are joining a successful brand and a network that will provide them support and advice, making it less likely they will go out of business.

Minimize Risks

One of the most laudable benefits of owning a franchise is minimizing risks. This can be explained by the fact that starting a business from scratch carries the risk of failure. Franchises are a more secure investment than new businesses because they have the support and backing of a larger established corporation.

Business Assistance

One of the benefits of franchising for the franchisee is the business assistance they receive from the franchisor. Franchisors offer many types of support, including inventory management, the roadmap for the design and build-out of your facility, training your employees, and other operational processes.

What are the Disadvantages of Franchising?

Although there are many benefits for business owners when buying or selling franchise opportunities to grow their brand, it is still important to weigh the potential disadvantages of franchising. Our competent Houston franchise attorney can help you decide whether buying a franchise is the right choice.

Restricting Control and Regulations

While a franchise allows the franchisee to be their boss, they are not entirely in control of their business, nor can they make decisions without considering the franchisor's opinion. The franchisor can exert a degree of control over most of the franchise business and decisions made by the franchisee. The rules governing its operation are clearly outlined in the franchise agreement.

Initial Cost Can Be High

Franchisees should expect to spend more on opening a franchise location than on an independent business. You will have to pay an initial franchise fee to the franchisor to cover the costs of licensing the rights to their brand and initial training expenses. In addition, you have to watch out for the monthly royalty fees that some franchisors charge their franchisees. The royalty fee is typically four (4) to six (6) percent of your gross sales revenue and marks a reduction in your profit potential.

Get a Brand for Better or Worse

Franchise owners benefit from strong branding. However, if something happens that harms the brand elsewhere in the organization, your business may also be affected.

Call Our Experienced Houston Franchising Attorney Now!

While it may seem like a dream to own a business under your favorite brand, franchise ownership should never be taken lightly. Seeking legal advice from our seasoned Houston franchising lawyer at GK Law PLLC, who can help you understand how franchising works, is highly recommended.

Our business law firm has extensive experience, knowledge, and resources to help franchising clients with legal advice about the purchase, sale, and operation of franchised businesses. We can review all relevant contracts and state franchise laws and help you understand your rights and franchise options. Call us now and speak to our top-ranking Houston business law attorneys to learn about the laws surrounding this business venture.


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