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Do I need to set up a LLC to be protected when buying a turn key franchise?

I am looking at a sandwich franchise to purchase. Am I protected from lawsuits under the freanchisor or do I need to set up a LLC?

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May 31, 2017
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The BAF Group LLC

Listen to Mr. Fallon. And I would add that you want to locate an Attorney that practices Franchise Law. Asking your next door neighbor, who may be a terrific Divorce Lawyer to represent you, is like asking your wife's gynecologist to take out your tonsils!

If you need a referral, I may be able to provide one.

Jun 29, 2011
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The BAF Group LLC

Listen to Mr. Fallon. And I would add that you don't want just any old Attorney! You want a specialist in Franchise Law. All Attorneys are not alike, and I don't mean some are good and some are bad...although like anything other profession, that is true. But someone that does not practice Franchise Law does not know ALL of the ins and outs of what you might need. Asking your next door Attorney, who might be a great Divorce Lawyer, is like asking your wife's gynecologist to take out your tonsils.

If you need one, I may be able to make a recommendation.

Jun 29, 2011
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Hi Thomas,

As a retire fast food franchisee I hope I'm not too late telling you that you need a lawyer to review your contracts and answer that correctly. Each franchisor has different contracts so the answer really depends on the outfit you're joining. For example, the franchise I was with specifies in the contract that it is with you personally, so you can't avoid liability with them.

Finally, you are never "protected from lawsuits" but being a corporation or LLC helps. Oh yeah, also look into "homestead Act" protections in your state before you do anything else.


Jun 28, 2011

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