Franchise Attorneys and Franchise Consultants: Critical Evaluation Questions to Ask

Evaluation of the franchise and evaluating franchise consultants lawyers may seem a daunting task. However, the company selects a firm to assist its entry into franchising, refine efforts franchise franchise opportunity or make investment decisions will have profound consequences. While requesting a list of references is an approach (and when is someone dumb enough to give a bad reference?) There are more objective criteria that are not dependent on selectively disseminated information.

In addressing the nine Franchise Questions, topics and subcategories of information discussed below, you virtually eliminate the 95% of people or companies that are considering. Then efforts can concentrate on evaluating the 5% cream of the crop (especially lawyers franchise) that truly deserve consideration:

A. FREE EXPERT:
The # 1 factor in assessing the so-called experts – are the leading experts in franchising really? There are objective criteria for determining this:

(1) Have qualified and have been allowed to testify as a franchise expert in court and arbitration proceedings? The participation of experts as a franchise in the franchise litigation process and offers a sensitivity of radar to detect and prevent future problems of excess.

(2) How many books in the franchise were written by the directors?

(3) How many items of the franchise have been published in newspapers or magazines?

(4) What is your franchise related teaching experience? (see items E and F below)

(5) What is the depth of their experience in the franchise industry? (see next item below)

B. EXPERIENCE IN THE INDUSTRY OF FRANCHISE:
(1) Length of time the company has operated exclusively in the franchise industry?

(2) Experience on both sides of the fence franchising – working with franchise companies (franchisors) as well as individual investors (franchisees) who have purchased a franchise?

(3) The directors have experience owning and operating a franchise business? This is absolutely fundamental. If managers have ownership and operation of a franchise, they bring a unique perspective and radar for avoiding future franchise relationship problems from disgruntled franchise owners.

C. FULL SERVICE AND TRAINING COURSE, CONTROL SYSTEMS:
(1) can (and will) the company to train its personnel to operate and manage your new franchise business? Remember, you are entering an entirely different business, requiring new skills and abilities. If this issue is not addressed in detail, you might as well assign the franchise fees received when you sell franchises for a future franchise litigation war chest;

(2) Does the company help to review and update operational (franchise operations manual) and legal documentation (franchise offering circular) on an ongoing basis?

(3) Has the company, and help you start, franchise marketing, sales and control of legal compliance programs critical during the implementation (implementation) phase of their franchise program?

The existence of these programs is essential to ensure only the cream of franchise applicants are allowed to enter the network, and create a series of files documenting a dispute arise in the future. Most of the legal risk in franchising occurs during the marketing cycle when franchises are sold franchises. If your company has done a good job here with these programs, and that has eliminated most of the risks.

D. LEGAL: FRANCHISE LAWYER
(1) Is the law practice dedicated exclusively to the franchise law?

(2) Total number of franchise disclosure documents (formerly called franchise offering circulars) drafted and revised?

(3) Experience filing franchise registrations and working with the examiners of all 14-plus franchise registration states?

(4) Experience represeting franchise companies and individuals who buy a franchise? Knowing both sides of the fence is a huge asset.

E. ACADEMIC: COLLEGE AND UNIVERSITY
Experience teaching franchise courses at graduate and undergraduate college?

F. ACADEMIC: PROFESSIONAL
Experience in teaching courses to franchise franchise attorneys and attorneys general practice?

G. MIX OF BUSINESS and legal:
Specialist franchise attorneys and law firms to produce strong legal agreements (sometimes overly so for future franchise relationship problems) and generally appropriate franchise offering circular. Leaving aside the question too tight contract, the problem is most lawyers franchise – franchise lawyers are unable to make sound, strategic business decisions and provide practical advice. Some franchise consultants, on the other hand, makes good business sense, but lack the necessary legal knowledge. Questions:

(1) Does the company have the right mix of expertise and business within the franchise legal advice? It is always a great advantage if the lawyer franchise also has an MBA. You can do a Google search with these two attributes (franchise attorney MBA) and significantly reduce the ground.

(2) Can the company produce good legal documentation (franchise documents) and help you edit (or create) compatible operating documents (such as the franchise operations manual, training program, etc.) If the franchise agreement says “x”, but its franchise operations manual or advertising materials say “and” on the same subject would be willing to pay high fees for a franchise with franchise litigation and trial attorneys in the future.

(3) Can the company provide competent and practical advice in critical areas like effective franchise marketing, media decisions, interviewing franchise buyers, adopting the best franchise organizational structure, implementation of a council franchise consultant, etc.? Mistakes made in these areas could easily cost the franchise company tens if not hundreds of thousands of dollars.

H. CONTRACT EQUITY:
Does the company give you a choice between:
(a) an hourly rate and
(b) a fixed fee contract, which does not have to worry about accumulated hours and a total stranger?

I. red flags – BEWARE OF ANY OF THE FOLLOWING:

• Combination of the equipment in case of an entity that is part of a project and on the other. For example, a consulting firm that planning and operational documentation, while an attorney “they know very well,” writes the legal documentation.

• Or, a variant of the above, the company in the “fine print” of its contract, requires your attorney (who obviously have to pay) to review and approve everything they do because the company (they say) is not providing legal advice. In fact, by providing documents that affect legal rights, are providing legal advice, but in an illegal manner. It’s called the unauthorized practice of law. That end up paying two attorneys – yours and theirs. In addition to the coast, which provides that for the future of franchise problems. His lawyer representing? The packing group franchise, of course, and definitely not. He or she is typically a recent graduate of the School of Law who has not discovered what they are doing is illegal and could lose his license to practice law. Besides, the group representing franchising consultancy, whose beat is the largest number of packages per year franchise possible. It ends with a bad document and franchise operations manuals franchise laziness. To save time, the franchise agreement is diluted so it is easier to push through some franchise registration states. Some of the “s” can be crossed and some of the “i” dotted, but most of them. The final product are documents which state that for future franchise litigation difficulties.

• Companies that advise the franchise business, and never seen your business! You’d be surprised how often this happens.

• Firms that say they will write their franchise operations manual for you. How can someone who knows absolutely nothing about your business, you could go to anything but a mediocre at best, is a frightening thought. The use of boilerplate manuals produced by consulting groups is another time bomb future litigation. You are the real expert in your business. With the guidance and editing, you will be able to produce a viable career and operations manuals, if you do not already have them.

• Price quotes that seem too high or low (especially do-it-yourself kits franchise).

• If you buy a franchise, beware of any lawyer recommended by the franchise company. Worse still, be careful with the franchise companies that say it is not necessary to use a lawyer. There are a couple of these on the Internet.

• Firms (or individuals) that have been sued for fraud, forgery, unauthorized practice of law or violation of any right of franchise.