le·gal·ese /lēgə’lēz/noun
1. The formal and technical language of legal documents that is often hard to understand. 2. Need-to-know legal advice from Jason Power
Legal issues restaurant franchisees face
O
wning a restaurant can be a fun way to make money. Like any other business though, a restaurant franchise comes with its own set of legal issues that you, as the owner, must manage. Before you open your restaurant, talk with both a franchise attorney and an attorney
who is well versed in the local laws in your state and those laws relating to restaurants. Here are five legal issues that restaurant owners typically encounter.
PERMITS AND LICENSES When preparing to open your restaurant, research the laws of your city, county, or state. Any or all of these local governing bodies may require permits or licenses, BUSINESS STRUCTURE which include a food-service permit, alcohol Your business structure—the actual place license, business license, and a food-safety where your business is run—is important permit. It can take several weeks to get apwhether you are opening a restaurant fran- proved for licenses, so you should apply for chise or any other type of business. When these as soon as possible. choosing your type of business structure, you should always talk with an attorney EMPLOYEES and an accountant. An attorney can assist Employees can be one of the most frustrating with setting up your business entity and issues with your restaurant, so you must be making sure all the proper documentation careful when hiring staff. All states have laws is filed and signed by all owners. An acrelating to employee wages and overtime, countant can help you navigate state and hours, and general working conditions. These IRS regulations to determine if one busilaws, specifically those relating to employee ness structure has a more advantageous wages, are why many fast-food restaurants tax status for you. are beginning to have customers use touch-
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