Can you tell me if a franchise is a 'good' investment?

While we cannot guarantee financial success, we can identify legal red flags, unusual restrictions, high litigation rates, and aggressive fee structures that indicate a higher-risk investment.

Should I form an LLC before buying a franchise?

Yes, it is highly recommended to form a corporate entity (like an LLC) to sign the franchise agreement. This helps protect your personal assets from business liabilities.

What should I look for when buying an existing franchise (resale)?

Resales require reviewing the existing franchise agreement, the franchisor's current FDD, the asset purchase agreement, lease transfers, and ensuring there are no hidden liens or liabilities from the seller.

Franchise Purchase Review

Franchise Purchase Analysis Before You Commit Capital

Buying a franchise is a major financial commitment. We review the FDD, franchise agreement, fee structures, Item 19 claims, and territorial rights so you understand your obligations before signing or paying.

Review a Franchise Opportunity Explore Franchise Services

30+ Years

Business Law
Experience

Nationwide

Strategic
Counsel

Multi-State

Regulatory
Compliance

Founder

Focused
Strategy

What’s At Stake

Buying a franchise is a major financial commitment. Relying solely on the franchisor's sales pitch can lead to:

Investing in a system with a high failure rate

Underestimating the true cost of opening and operating

Signing unfavorable commercial leases

Assuming hidden liabilities from a previous owner (in resales)

Being trapped in an unprofitable business model

Our Process

1. Opportunity Assessment

Review the franchise model and your business goals.

2. Document Analysis

Deep dive into the FDD, Franchise Agreement, and exhibits.

3. Financial Review

Evaluate fee structures, required capital, and Item 19 claims.

4. Risk Identification

Highlight operational, legal, and territorial risks.

5. Strategic Counsel

Provide actionable advice on whether to proceed or pivot.

What We Help With

Legal and strategic analysis of your franchise investment.

Comprehensive FDD Review

Identify red flags in the franchisor's disclosures, litigation history, and financial health.

Franchise Agreement Analysis

Break down your legal obligations, restrictions, and the franchisor's rights.

Resale Transaction Support

Legal structuring and due diligence for buying an existing, operating franchise location.

Entity Formation

Advise on the proper corporate structure (LLC, S-Corp) to protect your personal assets.

Commercial Lease Review

Review property leases to ensure they align with franchise agreement requirements.

Financial Obligation Mapping

Clarify all initial fees, ongoing royalties, marketing fund contributions, and hidden costs.

Frequently Asked Questions

An FDD review focuses strictly on the legal document. A Purchase Analysis is a broader evaluation that includes reviewing the FDD, analyzing the business model, reviewing commercial leases, and advising on corporate structuring.