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Avoiding Common Mistakes: Why you should seek legal advice Before Making Big Decisions
Business and Startup related matter

Avoiding Common Mistakes: Why you should seek legal advice Before Making Big Decisions


We all at some point of time in life need to take decisions which are significant in their magnitude and impact, and these are inevitable moments; while they give a thrilling feel, filled with lots of possibilities, but also comes with some potential risks. This could be when you're starting a new business, buying a property with your hard-earned money, or dealing with personal stuff like getting married or planning what happens to your property and assets after you're gone. These decisions can be tricky because they often involve a lot of complex documentation with multiple set of applicable laws. Making a slightest mistake could end up being very expensive, both in terms of money and stress. This is why it's really important to get right advice from a legal professional before you make these kinds of decisions. This blog is going to show you some common mistakes that people make when they don't get legal advice, and why it's always a good idea to get this expert advice to help you make the best choices in your life.


Overlooking Crucial Legal Documents
Overlooking or misreading essential documents is one of the most common mistakes all make when embarking on significant decisions. Legal documents, such as terms and conditions, contracts, agreements, wills, form the backbone for big transaction. They hold key information and terms that dictate how a deal or decision should proceed. When these documents are not given the necessary attention, or are misunderstood, it can lead to disputes, delays, and financial losses. Without professional legal advice, people often overlook critical clauses, misinterpret legal jargon, or miss out on the consequences of signing certain documents. Consulting a legal professional can help you understand these documents in depth, ensuring you are fully aware of your rights, responsibilities, and potential pitfalls before making your decision.

            Get your document reviewed with expert lawyer

We witness almost every day when two-three friends decide to start a business together. They go great idea, got enough funds, invested in best equipment, secure a great location, hired staff, and started getting amazing demand.  However, they fail to procure required permissions and licenses, didn’t have a co-founder agreement, and hired without properly employment agreements. They are now left exposed to the business threatening potential legal disputes and financial liability down the line. By consulting with a legal expert and lawyer beforehand, they could have avoided these issues and established a solid legal foundation for their business.


Ignoring Intellectual Property Rights

Another area where people often make legal mistakes is in the realm of intellectual property (IP). This includes patents, trademarks, copyrights, and trade secrets. Failing to properly secure or respect IP rights can lead to costly legal disputes and harm your reputation.

             consult a lawyer on Intellectual property matters


Suppose you create a new product and use a name/logo to that of a familiar/established company, believing it's a clever homage. You also become a known brand and got your customer loyalty in short span of time but unfortunately, the established company sees it as trademark infringement and takes legal action against you, this may end up in completely shutting down the brand or changing it, which will kill your customer’s brand loyalty. This could’ve avoided with appropriate legal advice and proper documentation. You could have chosen a different brand name/logo or secured a permission from the company to use their trademark, avoiding a costly legal battle.


Misunderstanding Contractual Obligations

Contracts are a crucial aspect of business and failing to understand them fully can lead to disputes and financial losses. It's essential to review all contracts with a legal professional before signing, as they can help you understand the fine prints, your rights and responsibilities, suggest you negotiating points and identify potential pitfalls.

              Consult a lawyer for contracts and agreements


You hire a contractor to renovate your office space and sign the contract without fully understanding its terms. The contractor completes the work, but the quality is below standard. When you attempt to withhold payment, you discover that the contract contains a clause requiring you to pay regardless of the work's quality. Had you sought legal advice beforehand, you could have negotiated a more favourable contract or found a different contractor.


Failing to Properly Document Transactions

Proper documentation is essential for any transaction, as it can help prevent disputes and protect your interests in the event of legal action. Unfortunately, many people fail to document transactions adequately, leaving them vulnerable to legal issues.


You loan money to a friend to help them start a business, with the agreement that they'll pay you back with interest. However, you don't put the agreement in writing. When your friend's business takes off, they deny ever agreeing to repay you with interest. Without proper documentation, you may struggle to enforce the repayment terms in court. Consulting a lawyer and getting a proper loan agreement before remitting the loan could have helped protecting your money and interests.

Not Seeking Legal Advice

Perhaps the most common legal mistake is simply not seeking legal advice when making any critical business or personal decision. As former Supreme Court Justice Oliver Wendell Holmes Jr. once said, "A man who is his own lawyer has a fool for a client."

Advantages and Disadvantages of Selling a Franchise
Business and Startup related matter

Advantages and Disadvantages of Selling a Franchise

Starting a new business is not something you do on a whim. You will spend a lot of time researching the benefits and drawbacks of entrepreneurship and will have a lot of queries about it. Franchising appeals to many would-be entrepreneurs because it allows them to run a successful business without setting up a business. There are many advantages and disadvantages of starting a franchise for both franchisors and franchisees. The franchisee is a third-party buyer who buys the franchisor's brand rights (the brand owner). The franchisee pays the franchisor an initial franchise fee in exchange for the right to use the brand and regular franchise fees for marketing, royalties, and other expenses.

Advantages of Selling a Franchise

The initial component needed in order to start a franchise is 'capital'; the capital can be made available from the franchisees itself and thus no need for the franchisors to take out a loan. The most important actor that keeps the place running are the staff and employees in the franchise, and thereby their training becomes an essential aspect in the franchise's day-to-day operations. The franchisor only makes sure to give the technical and business knowledge to the franchisee at the start, thus the daunting task of the management, training and hiring of the staff falls on the shoulders of the franchisee. Moreover, in the longer run the franchisor faces minimal risk since the responsibility of taking the debt and liability is on the franchisee, thus the franchisor can focus on the bigger picture related to the overall success of the business.

When discussing the advantages that a franchisee has when opening a franchise, all the crucial information and training that makes any given franchise a success are duly provided by the franchisor for they need to ensure the preservation of their goodwill. This forms a part of comprehensive business assistance which includes brand, location, equipment, advertising plan and a structural business plan provided by the franchisor. This is commonly called 'turnkey business' in which everything that a buyer needs to start running the business immediately is already provided. Another advantage of franchise business is that a loyal customer base has already been made over the years and the people are already familiar with the brand name.

People Also Read This: Types of Franchise Business Models

Disadvantages of Selling a Franchise

Some significant disadvantages of a franchise for a franchisor are:

  • Lack of control over business processes after franchising the business.
  • There is always a risk that the franchisee may violate applicable laws and regulations.
  • There is no guarantee that the brand would expand and generate a customer base.
  • There are significant risks as to infringement of intellectual property and proprietary information.
  • Training costs and liability for wrongs committed by the franchisee often pose risks.

People Also Read This: Franchise Terms And Conditions In India

With the advantage of enjoying the franchisor's brand name, there come the checks and balances that the franchisee must deal with regularly. To be assured that the franchise runs smoothly and makes profits; will try to oversee the entire financial system that the franchisee operates. Thus, this might be restrictive of the autonomy of the financial powers of the franchisee. Therefore, the whole notion that the franchisee is his' boss' is not entirely true since we can see that the franchisee does not always enjoy individual control when it comes to implementing creative ideas in the business and have to comply to the strict interpretations of the regulations and standards by the franchisors in the franchise agreement.

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