Legal Question in Business Law in California

Mr. Franchise weighs in on buying a franchise

Don't rely on the company's CA franchise registration as proof of anything more than they've submitted paperwork and paid a filing fee. The registation process is nothing more than a rubber stamp. If you visit our website at www.franchisefoundations.com and click on the �Buying A Franchise� and �Articles II� tabs, you will find a lot of information and tips on evaluating franchise investments and companies. Buying one from a relatively embryonic (new) franchise company has its own particular risks, since they are essentially in a "learning" mode. Geographic disparity is another critical issue, not only for training and support, but also where you'd need to go (and hire local attorneys) for resolution of disputes (which happen frequentyly with new franchise companies). Good luck! Kevin B. Murphy, B.S., M.B.A., J.D.

Re: buying a franchise

You have an enormous amount of 'due diligence' you must do, and documents you must have, so any attempt to do this without sound legal advice, and tax advice, would not be wise. Sorry, but you are dealing with professials out to protect themselves. You need to do the same. Feel free to contact me, I have helped others in franchising.

Re: buying a franchise

1. Google on "How to buy a franchise."

2. *** HIRE A LAWYER ***

3.. Do not sign anything that YOUR OWN LAWYER did not review and approve.

Re: buying a franchise

Look on the California Department of Corporations' Web site under "Securities Regulation" then the sub-directory item for franchising, to see what franchisors have to do to comply with California's rather protective regulations. Then insist upon proof that this franchisor has complied with California's strict rules and that there are no disciplinary actions pending against them here.