A franchise lawyer is one whose primary practice is franchise law. There can franchise lawyers who help those interested in making a franchise investment. The types of legal services offered by franchise lawyers of this type include negotiating franchise contracts, reviewing disclosure documents and sometimes negotiating the lease for the ultimate retail location. Fees for franchise lawyers are an hourly rate that ranges from a low of $300 to $600 or more per hour.
The second kind of franchise lawyer are those who help companies that want to expand and sell franchises for their business model. A franchise lawyer of this type usually drafts franchise disclosure documents, the franchise agreement and franchise registration applications. There are approximately 14 states where a franchise lawyer needs to file a registration application before the company can Offer or sell franchises in these states. There are also 24 states that have business opportunity laws the franchise lawyer may need to comply with in order for the company to offer or sell franchises in these states. Franchise lawyers who do this type of work typically charge hourly rate that ranges from a low of $300 to $600 or more per hour for franchising a business services.
HOW TO FIND A GOOD FRANCHISE LAWYER
Using a franchise lawyer early in the process is best, whether you are thinking about buying a franchise or franchising a business. But with franchise lawyers its also important to be selective and savvy. Find a franchise lawyer who, in addition to their law degree also has an MBA (Master of Business Administration) and youve narrowed the field to a select few. Its surprisingly easy to do this. You can simply do a Google search for MBA franchise lawyer. Now youre dealing with a franchise lawyer who understands both the legal and business issues that are both critical in the franchise industry or
franchise my business. Youve done a good job at this point, but dont stop here. You can narrow the field and obtain the best of the best by finding a franchise lawyer, with an MBA, who also has franchise ownership experience. Whether youre buying a franchise for the first time or franchising a business, the advice received is a lot more meaningful and practical when it comes from a franchise lawyer, MBA and former, successful franchise owner - as opposed to someone who has never operated a franchise before. Finding a franchise lawyer, with an MBA, and who has owned a successful franchise that is the cream of the crop.
FRANCHISE LAWYER QUESTIONS
(1) Is the law practice devoted 100% exclusively to franchise law - and how long have they been practicing franchise law exclusively?
(2) How many FDD Franchise Disclosure Documents (formerly called franchise offering circulars) have they have drafted and reviewed?
(3) What is the franchise lawyers experience filing franchise registrations and dealing with state examiners in all 14 franchise registration states? What about in the 24 business opportunity states?
(4) What is the franchise lawyers experience representing franchise companies? What about representing individuals who want to buy a franchise?
(5) Does the franchise lawyer have experience owning and operating a franchise? Was it a successful franchise? Knowing both sides of the franchise fence is a great asset.
(6) In addition to a law degree, does the franchise lawyer have an MBA? As mentioned, this is especially helpful to advise in both the business and legal aspects of the franchise industry. Do a Google search with "MBA franchise lawyer" as a search term and the results will be apparent.
Other factors, like being a member of the American Bar Association's Forum Committee on Franchising, dont amount to much. Membership in a franchise committee or franchise association simply means the franchise lawyer pays a yearly membership fee. There is no prior skill in franchise law required and a large number of members join to learn about subjects they don't know very well.
