Choose Your Franchise Counsel Wisely

rnOnce, I had a client that hired a patent attorney to negotiate a real estate lease in terms of franchise business. Now, I guess that my target audience is smart enough and does not require me to explain any further about the entire process of proceedings. Well, the question is that “Why did he do that?” He admitted his mistake honestly because he simply did not know anything better. In the world of franchise concept , on the matter of buying franchise, the need for a qualified franchise attorney is essential that can make a world of difference in negotiating better deal, preparing the appropriate documentation and explain all the necessary requirements to get started. In this direction, one should move cautiously because every attorney may not do well in representing your case, as he happens to predict. I had a recent client, who was very much interested in buying a franchise. She hired a family attorney to review the documentation for her. The net result was that her counsel provided a 15 page bullet point synopsis of the FDD (Franchise Disclosure Document) and the franchise agreement for a fair charge of 2,000 dollars. It did not carry any sort of detailed analysis and no specialized advice was also provided on the matter. Now, I would like to guide on the matter that what you should receive from your franchise concept attorney in term of advice, opinion and guidance. There are legal aspects to every transaction that are important; but there are also business aspects. The best attorneys, known to me, provide the appropriate balance between the two. And this is what you should expect from your attorney. In addition, if you are looking forward to buy a franchise, I would HIGHLY recommend you to work with an attorney that specializes in franchise business law. While I have nothing against generalists, franchising is becoming increasingly specialized; I would like to be represented by someone, who only practices in the franchise industry. This is not different from having a patent lawyer to help you process an application for a patent. The question arises that would you go to a heart surgeon to replace a knee? The concept here is the same. Lastly, one should take on his investment as a fee and not a particular sort of cost. I have had many clients looking to buy a franchise and not willing to invest more than 2,000 to 4,000 dollars because they perceive it to be too expensive. This seems to be based on the classic phrase called “penny wise and pound foolish” approach. On buying a franchise, you might be required to invest anywhere between 100,000 dollars and more. Now, the cost of good counsel is “de minimis” relative to your total investment. If you decide to avoid such expenditure; then, it might seem to be a stupid action. At times, these franchise business agreements can have very onerous provisions that can prove to be costly and unnecessary. A qualified franchise attorney can help reduce this liability and protect you from making an expensive mistake. A franchise business investment can be a fun and rewarding experience. Despite some of the negative promotional stuff, you may find about the industry, there are many great models where one can be quite successful. If you are willing to buy a franchise, and are serious about making the investment; then, take the time to find a good franchise attorney and you would be glad with the provided results.