In this interview, we discuss an array of topics with attorney Julie Lusthaus, partner at Einbinder & Dunn. Ms. Lusthaus has been practicing law since 1996 and has substantial experience representing franchise and private business clients. If you have any questions regarding the legal aspects of buying, selling or appraising a franchise or private business, then this interview is a must read. Not only does Ms. Lusthaus cover the basics of buying and selling a franchise business, she also offers insight into the problems that could arise during the sales process, as well as important information such as a non-compete agreement .
Key Points from our Conversation
- Typically, deals fall apart because after due diligence, the parties simply cannot agree on a price.
- It is highly recommended that you have an attorney knowledgeable in non-competition law draft the agreement to give you the best chance of precluding the seller from competing with you.
- If a buyer is very entrepreneurial, a franchise may not be the best option because that buyer may want to implement his or her ideas rather than simply following the franchisor’s requirements.
- If you are looking to sell a franchised business, you will not only need to find a buyer but you will likely need consent from the franchisor.