Oswego and Kendall County Franchise Business Attorneys

The purchase or sale of a franchise is a major investment transaction. The process is complex and requires varying different legal documents, which require precision and understanding. The first step in the sale and purchase of a franchise is the letter of intent.

Letter of Intent Attorney in Kendall County and Nearby Areas

The Letter of intent or “LOI” is necessary for several reasons:

•  The Letter of Intent guarantees the franchise will be sold to the agreed buyer even if other potential buyers appear in the future. Thus, the LOI restricts the business deal between the buyer and seller.
• The Letter of Intent shows seriousness by the Buyer and usually will include earnest money or a down payment evidencing their seriousness.
• The Letter of Intent is the first step in consummating a business deal for the franchise purchase or sale.

The letter of intent summarizes the parties involved in the transaction, the deposit amount, the purchase price, and key terms such as how the deal is going to be financed and determines a buyer due diligence period. In summary, the letter of intent is a written and legal document declaring the buyer’s intentions to purchase a seller’s franchise.