Legal Question in Business Law in Nevada

Selling business opportunity

I have an LLC on a 2month old company and cannot franchise yet. State of formation? NV The company is VERY successful. I've been selling the product for the past 7 months, and decided to incorporate. This is my 2nd month in our brick and mortar location, we're incorporating commerce into the website, and booked for the next several months to sell at sporting events. Again, VERY successful.

Because I'm so new & can't franchise, I've put together Business Opportunities. I sold one last week and need to generate legal paperwork, but have NO IDEA where to begin. Of course, I made my own contract and informed the client my ''attorney'' is working on a lawyer-speak contract. They had no problems with it, overnighted a check, and are selling in OR. Since then another opportunity has arisen to sell Business Opportunities, and I need to start the process of getting paperwork.

I've considered Pre-paid Legal because of the free phone consultations, contract reviews and discounts.

My question(s)?

1. Pre-paid legal...good/bad/indifferent?

2. Can someone point me in a direction?


Asked on 3/11/09, 8:47 pm

2 Answers from Attorneys
Jonathan Reed Reed & Mansfield

Re: Selling business opportunity

To answer your question I went to Prepaid Legal's website and saw that they would charge you $69/month plus a $10 enrollment fee. Your independent associate would be Matthew Smith. He is not a Nevada attorney according to the website of the Nevada State Bar. So, I have no idea who you would be hiring for legal advice. Their website does not explain what legal services are provided and what are not.

I can assure you that no attorney can undertake to serve all legal needs of a business for $69/month. You seem to be trying to franchise without complying with the franchise laws because you think you have a way to get around the franchise laws. This is a dangerous activity which could get you into all sorts of problems. $69/month is not going to solve the problems you are headed for.

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Answered on 3/11/09, 9:15 pm
Warren Markowitz Warren R. Markowitz, Esq

Re: Selling business opportunity

From your description you are either licensing or franchising your product/services. Running afoul of the Franchise laws puts you into a position that not only enters State regulatory realm but Federal as well.

Using a prepaid service might be sufficient for developing a simple will or even a revocable trust, but when you are dealing with complex inter-state issues and regulatory regimes taking the inexpensive way out can be very expensive indeed.

If you wish to speak about your project and the services I can provide. Please contact my office.

Good Luck,

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Answered on 3/11/09, 10:15 pm


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