Carr Law Firm, P.A.
Serving All Of Florida
407-426-9300 888-351-0905

Thinking of starting a franchise relationship?

If you want to use the trademark of another company for your own business, you must start a franchise relationship. A franchise relationship is a legal and commercial connection that allows the owner of a trademark to give you rights to use their name and advertising symbol for your business.

When giving you the rights to their trademark, the owners will usually ask for something in return. In most cases, they try to negotiate a certain percentage of the profits from your new business venture. The payment you make to the owner is called a "royalty." It is important to understand the concept of royalties before you start negotiating a franchise relationship.

State laws govern franchises and force businesses to disclose certain information like average profits or operating costs. These disclosures could have a direct effect on your business. You must understand the significance of these disclosures before starting a relationship with the owner of a trademark. When the negotiations are complete, you will have to sign a franchise agreement and a franchise disclosure document (FDD). An FDD is a complicated document and can be difficult to understand. It includes all the disclosures that you have to make to the state.

The franchise agreement and the FDD are complex legal documents that a lawyer can easily interpret. It is advisable to involve an experienced franchise attorney to go over the documents and help you protect yourself. It is best to hire an attorney before the negotiation process. The experience of your legal counsel may lead to an improved deal.

No Comments

Leave a comment
Comment Information
| Email Us For A Response

What Clients Say About Carr Law Firm

  • Pete Carr has represented my companies for the past several years. He has handled all of the companies litigation needs along with providing legal counsel and legal documents as needed. Pete is always extremely professional but the thing that I like the most about Pete is how responsive he is when needed.
    Danny Quinn, President
    Quinn Commercial, Inc and Quinn Contractors, Inc.
    read more
  • Peter Carr of the Carr Law Firm, P.A., has represented various companies I owned since 2009. Mr. Carr is a great talent in landlord/tenant disputes and general corporate litigation. In every case he has represented me in, he researched and advised me of the best solutions to either settle the case or to fight.
    Abdul Mathin
    Blackmine Property Management
    read more
  • Pete has been my attorney for many years. I previously worked with other attorneys and what I like about Pete is that he looks at all angles of the situation and gives me advice that is in my best interests, even if it’s not what I want to hear. When necessary, he litigates aggressively.
    Vincent F. Wolle, CCIM, SIOR
    Broker-Investment Partner
    Results Real Estate Partners, LLC
    read more

Carr Law Firm, P.A.
203 E. Livingston Street
Orlando, FL 32801

Toll Free: 888-351-0905
Phone: 407-426-9300
Fax: 407-426-9304
Map & Directions