Elizabeth D. Sigety was quoted in the Franchise Times article "Lawsuits Happen, But Here's How To Avoid Them." Full text can be found in the February 15, 2015, issue, but a synopsis is below.
No one likes to spend time and money on legal battles. Here is advice on staying out of the courtroom and growing a successful franchise system.
"With the franchisors I work with, their vetting process could be very different," says Elizabeth Sigety. "For our startup franchisor clients, my firm does free background checks. I feel it's so important for them to do background checks on their franchisees, and it's public information. I find they often skimp on this."
Sigety also cautions, "don't whisper anything under the table: that's against the law. I'm very big on financial performance representations, Item 19s. I think you should put them in your FDD as soon as possible. Yes, it costs more legal time, it costs more money. But I think you're preventing a big legal problem."
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