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Franchise Agreements

Franchise Agreement Attorneys in Houston

Protect Your Investment with Experienced Legal Review of Franchise Agreements & Disclosure Documents

Considering a franchise investment in Texas? Our experienced franchise attorneys can analyze every detail of your Franchise Disclosure Document (FDD) and franchise agreement to identify red flags, unfavorable terms, and hidden risks that could cost you thousands.

We’ve been protecting Texas franchisees since 1987. Let our experience help you launch your franchise with confidence. 

Watch for these FDD, Franchise Agreement Red Flags

Franchise agreements are complex legal documents designed to protect the franchisor's interests – not the franchisee. 

Without experienced legal counsel, you may unknowingly agree to:

  • Excessive initial and ongoing fees that reduce your profitability
  • Ambiguous or one-sided contract language
  • Restrictive non-compete clauses that trap you in unprofitable situations
  • Inadequate or undocumented training and support obligations 
  • Forum selection clauses that require you to settle disputes in the franchisor’s home territory
  • Limited grounds to terminate a franchise agreement even if the franchisor is in breach
  • Personal guarantee with unfavorable terms and limits
  • Unrealistic earnings claims without solid data and proven business models to back them up

Another common issue we encounter are verbal promises not captured in the agreement. If it’s not in writing, you will not have any recourse to defend your interests should verbal promises go unfulfilled.

FDD and Franchise Agreement Legal Review Services in Texas

The average franchise agreement is 50+ pages of dense legal language. At Hendershot Cowart, we can review your FDD and franchise agreement with an eye on protecting your rights and to ensure that the franchisor’s responsibilities to you are fully and clearly expressed.

Key provisions we examine:

  • Financial Obligations: Initial fees, royalties, marketing contributions, and additional costs
  • Operational Requirements: Standards, procedures, and compliance obligations
  • Territory and Competition: Exclusive rights, protected areas, and non-compete restrictions
  • Termination and Renewal: Exit conditions, renewal terms, and post-termination obligations
  • Dispute Resolution: Forum selection, arbitration requirements, and legal procedure

Franchise Agreement Redlines and Negotiations

When we identify problematic terms, we don't just point them out – we help you address them. 

Common provisions or issues we can negotiate or clarify on your behalf prior to signing include:

  • Ambiguous language about the franchisor’s obligations to support the franchisee
  • Territory rights, which can help protect your business from competition within the franchise
  • First right of refusal on the option to establish another location in an adjoining territory
  • Dispute resolution and forum selection clauses. If there is a dispute, the franchisor will often select an arbitration forum in the city of its headquarters, requiring the franchisee to incur travel expenses to dispute the matter. Instead, negotiate a forum convenient to you.

In addition to establishing the legal obligations for both the franchisor and franchisee, the franchise agreement should clearly outline your renewal rights, rights respecting transfer or sale, and termination rights. 

If any of these rights are ambiguous or missing, your attorney can negotiate with the franchisor to clarify or add these provisions.

What Information Should Be Included in a Franchise Disclosure Document?

A franchise disclosure document (FDD) is required by the Federal Trade Commission and is critical to performing pre-sale due diligence when buying a franchise. 

An FDD always consists of the same 23 items, including:

  • The franchise agreement
  • A description of the company and its history
  • Biographical information on the franchisor’s officers or executive team
  • Any past or current litigation or legal actions against the franchise
  • Initial and other fees
  • The support provided by the franchisor, such as training, advertising, computer applications, etc.
  • The franchisee’s obligations for running their business
  • The franchisee’s territory
  • Trademarks and other proprietary information registered to the franchise
  • Conditions for renewal, termination, or transfer
  • Financial statements
  • The process for dispute resolution, and more

Pay special attention to item 22 (the franchise agreement), as well as items 5, 6, 7, and 19. Items 5 and 6 cover initial and ongoing fees, item 7 details the initial investment required to establish a franchise, and item 19 includes information about the franchisor’s financial performance. 

Franchise Agreement Review FAQs

How long does a franchise agreement review take? 

Our attorneys can often review your franchise agreement and FDD within just a few days of your initial call. Call (713) 783-3110 to schedule the review and one-hour consultation with an attorney. 

What if the franchisor won't negotiate terms? 

While not all terms are negotiable, many franchisors will consider reasonable modifications. We help you identify which terms are worth pursuing and how to approach negotiations professionally.

Can you review the agreement even if I've already signed? 

Yes, we can review existing agreements to help you understand your obligations. Often, we are asked to review franchise agreements when a dispute is already simmering. In those circumstances, we can help identify potential grounds for negotiating an exit to an agreement that did not live up to its promises. 

Do you work with specific franchise brands? 

We review agreements for all franchise brands and industries, from food service to retail to business services.

What are your fees for franchise agreement review? 

Our review fees are transparent and fixed-price. We can provide detailed fee information when you contact us to schedule your consultation.

Ready to Protect Your Franchise Investment?

Don't risk your financial future on an uninformed decision. Our experienced Texas franchise attorneys are ready to review your franchise agreement and FDD, providing the clarity and protection you need.

Call (713) 783-3110 to schedule your franchise agreement review and consultation today.

Why Choose Our Team?

Unwavering Commitment to the Success of our Clients

With decades of combined experience, we bring big-firm capability with personal firm service.

  • In Business Since 1987.

    Nearly 40 years representing clients in business and healthcare matters.

  • We Serve Clients Throughout Texas and the Nation.
    We handle matters from the Red River to the Rio Grande and beyond.
  • We Build It, and We Defend It.

    We form Texas businesses and medical practices, and we defend them when regulators, payers, partners, or outside parties come calling.

  • Legal Counsel You Can Understand.

    We explain every step in plain English and lay out our fee arrangement up front, before you sign anything.

  • We Want to Be Your Law Firm for Life.™
    We take a vested interest in our clients' success – from start to finish.

To Us, Every Case is Personal

Real Stories, Real Results, Real Advocacy
    "Invaluable to have their counsel."
    The HC team is exceptional. I worked with Keith, Patrick and Lauren - they were an amazing team and extremely comprehensive. I had 6 total Agreements I was negotiating in the healthcare space that spanned from Operating Agreements, Joint Venture, Development (territory rights and schedule), and a Franchise Agreement, and Managements Service Agreements. Also need to form new entities, and structure investor documents. Their expertise spanned legal, business, and the healthcare regulatory environment. Invaluable to have their counsel. I highly recommend the team at HC Law.
    - Scott S.
    "I am incredibly grateful to the entire team for protecting my career"
    I received exceptional legal representation by Hendershot Cowart P.C., and specifically by Brady Dunlop.

    Throughout the process, Brady was patient, tireless, and highly strategic in developing a solid defense. His guidance and expertise were invaluable, ultimately leading to a smooth dismissal of the case.

    As someone deeply dedicated to the field of medicine, these allegations were personally distressing. I am incredibly grateful to the entire team for protecting my career and resolving this matter so effectively. Thank you.
    - Jenni B.
    "It was a delight to finally get an attorney on the phone that seemed to know the exact steps that we needed to take."
    I’m very pleased with the outcome so far with this law firm, from the initial contact with their intake and how polite they were documenting everything that we talked about. The knowledge that they had was just great. Laura Vacker called me within the day to go over everything, She was extremely helpful. She broke down everything and gave me as much information on the law firm that could be provided. Most law firms don’t even do that. She gave me different options, which I am reviewing now. It was a delight to finally get an attorney on the phone that seemed to know the exact steps that we needed to take.
    - Patrick B.
    "We will be back for all future legal needs."
    I highly recommend Hendershot Cowart and specifically Philip. He helped us on a very complicated property dispute that ended in our favor. It was clear from the start that he is motivated and genuinely cares about his clients. We will be back for all future legal needs.
    - Zachary H.
    "I'm glad to know I always have top-notch legal representation"
    I have worked with Trey and the team there multiple times. They are attentive, great to work with, and I'm glad to know I always have top-notch legal representation
    - Brad B.
    "Keith was able to get our business up and running again."

    Great people to work with! Keith helped us through our appeal step by step and was able to get our business up and running again.

    "Super happy with this law firm!"

    Anton was my attorney for a ceases desist letter. He was absolutely amazing, responded extremely quickly and the response he wrote for me was phenomenal. Super happy with this law firm!

    "I don't believe we could have navigated this challenging situation without his support."

    Highly recommend the firm and Philip in particular; I greatly appreciate the firm for the invaluable assistance with the legal matters we engaged it to address. Philip Racusin's expertise, attentiveness, responsiveness, and professionalism have been exceptional, and I don't believe we could have navigated this challenging situation without his support.

We Are On Your Side Contact Us to Schedule Your Consultation

Call (713) 783-3110 or submit our online contact form. An attorney or member of our reception team will contact you to discuss your matter.

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