Whitaker Chalk understands that there’s more to buying or selling a franchise than meets the eye. After all, the sale of a franchise or business opportunity must be in compliance with applicable federal and state laws. A significant number of documented disclosures must be made to potential franchisees in addition to registration requirements when applicable. Violations of franchise and business opportunity laws may subject companies, their officers and agents to severe liabilities, including injunctions, asset freezes, civil penalties, monetary judgments and personal liability. Franchisors and their key officers and executives may also be responsible for violations by persons acting in their behalf, including independent franchise brokers, sub-franchisors and the franchisor’s own sales personnel.
For those who are considering buying a franchise or business opportunity, careful legal review of the franchisor’s disclosure documents is an extremely important part of evaluating the franchise business. Let Whitaker Chalk help put your mind at ease as you start your new endeavor.