People's Law Guide
by Stephen M. Feidelman, Esq.
You should consider the following issues before committing to any purchase:
* Are you willing to work within the limits and operating structure of the franchise system?
* Is the product or service to be offered something which you enjoy dealing with?
* Have you evaluated the market for that product or service?
* Have you read the franchise disclosure document and resolved any questions which have been raised?
* Can you arrange for sufficient working capital to offset periods of negative cash flow while the business becomes established?
* Do you have a business exit strategy and do the franchise agreement terms conflict with it?
* Have you learned as much as you can from existing and past franchisees about the system under consideration?
* Have you negotiated the most favorable terms for acquiring or leasing a commercial business premises?
* Have you sought independent legal and financial advice about the business relationship you are about to enter into?
* Have you explored the formation of a business entity to help avoid owners’ liability for third party claims against the business?
Stephen M. Feidelman maintains a general civil law practice in Hollywood, Florida, with a core concentration on franchise and dealership representation and allied business law issues. He has attained a Martindale-Hubbell Peer Review rating of AV®, which depicts that a lawyer is recognized for the highest levels of skill and integrity; has served on the Executive Council of The Florida Bar Business Law Section; chaired The Florida Bar's Antitrust, Franchise and Trade Regulation Law Committee; been a faculty participant in numerous seminars related to franchise and business opportunity legal issues; contributed to Florida Bar committee consumer education pamphlets and seminar course materials; and been a guest lecturer on franchise law issues at the H. Wayne Huizenga School of Business and Entrepreneurship, Nova Southeastern University.