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What is a franchise agreement?

A franchise agreement is the contract you would enter into with the franchisor when you are finalizing the purchase of a franchise. It is the main contract outlining how the franchise relationship will work.

Although you will generally not have much say in what actually goes in the agreement, you should review it carefully to make sure than anything the franchisor promised you is in the agreement (if it’s not, you will probably not be able to enforce the oral promise at a later time). You should also pay close attention to the financial terms in the agreement, particularly with regard to any fees you have to pay and any sales quotas that are in place (for example, if your business starts off slow and you fail to meet a sales quota, you could find yourself in a very difficult position early on in the life of your business).

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What do a corporation’s directors do?

The corporate board of directors has broad powers which they exercise in making the big policy decisions affecting the corporation. Such decisions would include when stock should be issued, the purchasing or selling of property, the election of corporate officers, mergers and acquisitions, other major transactions the corporation needs to undertake, etc.

 The incorporator and/or the original shareholders will determine how many directors sit on the board, and this will generally appear in the articles of incorporation and/or the corporate bylaws.

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What is a limited liability partnership?

A limited liability partnership is a special type of partnership only used by businesses organized by certain types of professionals. For example, a group of lawyers or doctors may start a law firm or a health clinic as a limited liability partnership.

The major distinction between this and other types of partnerships is that the owners of an LLP are not personally liable for the negligence of other partners, although they remain liable for their own negligence and for any debts or losses of the business itself. Thus, these are useful in states where the law or professional ethics rules will not allow the professionals to form a corporation or LLC, as it affords the owners at least some limited liability. For example, many state ethics rules do not allow lawyers to form anything other than a partnership, so a limited liability partnership at least affords the owners a little protection in the event that one attorney commits malpractice or some other negligent act.


A limited liability partnership is a special type of partnership only used by businesses organized by certain types of professionals. For example, a group of lawyers or doctors may start a law firm or a health clinic as a limited liability partnership.

The major distinction between this and other types of partnerships is that the owners of an LLP are not personally liable for the negligence of other partners, although they remain liable for their own negligence and for any debts or losses of the business itself. Thus, these are useful in states where the law or professional ethics rules will not allow the professionals to form a corporation or LLC, as it affords the owners at least some limited liability. For example, many state ethics rules do not allow lawyers to form anything other than a partnership, so a limited liability partnership at least affords the owners a little protection in the event that one attorney commits malpractice or some other negligent act.A limited liability partnership is a special type of partnership only used by businesses organized by certain types of professionals. For example, a group of lawyers or doctors may start a law firm or a health clinic as a limited liability partnership.

The major distinction between this and other types of partnerships is that the owners of an LLP are not personally liable for the negligence of other partners, although they remain liable for their own negligence and for any debts or losses of the business itself. Thus, these are useful in states where the law or professional ethics rules will not allow the professionals to form a corporation or LLC, as it affords the owners at least some limited liability. For example, many state ethics rules do not allow lawyers to form anything other than a partnership, so a limited liability partnership at least affords the owners a little protection in the event that one attorney commits malpractice or some other negligent act.


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Can I set up a partnership without a lawyer?

Because general partnerships are relatively easy to setup, you generally can start one without the help of an attorney. You will obviously need to do some research on your own, such as looking into appropriate names, determining the relevant state and local laws and regulations, etc. However, as long as you do your research, you may be able to setup and run your general partnership without the help and expense of an attorney. Of course, you should understand that there is always a risk that if trouble arises with your partnership down the road, you may be in a worse situation then you would be in if an attorney had originally helped you set up the general partnership. This is not to suggest that you should not set it up on your own - simply that you should tread carefully.

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What is a corporation?

A corporation is one of the four general ways you can choose to organize your business (the other three being as a sole proprietorship, as a partnership or as a limited liability company). Like partnerships and limited liability companies, a corporation is a separate legal entity from its owners, and it can live beyond the life of any of the individual owners. Corporate owners are known as shareholders. Many times a corporation is not run or controlled by its shareholders. Instead, the corporate directors manage the corporation and the officers operate it on a day- to-day basis (of course, the role of shareholders, directors and officers can often be mixed, and for small corporations, there may just be one or more shareholders who also run and control the company).

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RIF - Innowacje

 

European Funds – for the development of innovative economy. We invest in your future Project is co-financed by the European Regional Development Fund under the Operational Programme Innovative Economy.