Whether you’re looking to become a franchisee for the very first time or you need a strong legal advocate who can fight back against your franchisor, FortmanSpann, LLC is here to help. Contact a seasoned Louisiana franchise lawyer from our legal team today so you can tell us your needs and goals and so we can get started working toward making those goals a reality.
Franchise Lawyer | Here for Franchisees in the State of Louisiana & Nationwide
We believe that our franchisee clients deserve a quality legal team that will effectively advocate for their rights at every turn. We provide clients in the state of Louisiana with a wide variety of franchisee services, including the following:
Starting a Franchise in Louisiana
If you are a prospective franchisee in Louisiana, you may be enticed by the opportunity to own and operate a business that has an established brand, system, and support. However, you should also be cognizant of the legal aspects and implications of entering into a franchise relationship. Here are some of the things that you should know before becoming a franchisee in Louisiana:
- Louisiana is not a franchise registration state: Unlike some other states, Louisiana does not require franchisors to register or file their Franchise Disclosure Document (FDD) with the state authorities before offering or selling franchises in the state. This means that you may not have access to the same level of information and protection as in other states. However, franchisors are still required to comply with the Federal Trade Commission (FTC) Rule on franchising, which mandates them to disclose certain material facts and risks about their franchise system in the FDD and to provide it to you at least 14 days before you sign any agreement or pay any fee.
- Louisiana has business opportunity laws: Although Louisiana does not have specific franchise laws, it does have business opportunity laws that may apply to some franchisors who do not have a federally registered trademark. A business opportunity is defined as an arrangement where the seller provides a marketing program to the buyer that enables the buyer to derive income exceeding the price paid for the opportunity, and where the initial fee is more than $300. If a franchisor falls within this definition, it must appoint the Louisiana Secretary of State as its agent for service of process and maintain a surety bond of $50,000. However, most franchisors are exempt from these requirements if they license a trademark registered with either the United States Patent and Trademark Office (USPTO) or the state of Louisiana.
- Louisiana has a forum selection statute: One of the issues that may arise in a franchise dispute is where the dispute will be resolved. Some franchisors may include a forum selection clause in their franchise agreement that requires you to litigate or arbitrate any claims in a state other than Louisiana. However, Louisiana has a statute that provides that unless the franchise agreement provides otherwise, disputes arising under a franchise agreement shall be resolved in a forum inside Louisiana, and interpretation of the agreement shall be governed by Louisiana law. This statute applies only if the business and location of the franchisee are exclusively in Louisiana. Therefore, you should carefully review your franchise agreement and consult with an experienced franchise lawyer before signing it.
Contact a Franchise Attorney Today
If you need a dedicated Louisiana franchise lawyer in your corner, look no further than our firm. Contact FortmanSpann, LLC online today so we can get started working on your case.
