Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!

Franchise Buyers Don’t Need a Lawyer – Yeah Right!

franchise law

Okay, so I am biased. But it is a well-developed bias based on years of experience and shattered dreams. And years of hearing the same refrains: “I couldn’t afford a lawyer when I bought my franchise,” “I used the lawyer who drafted my will and he said the contract was fine,” and “I heard I would be wasting my money because the franchisor would not change the contract anyway.”

These excuses are usually first heard when I meet with a franchise owner who is now asking for advice regarding their dissatisfaction with their franchise relationship. Too late. That is, sometimes it is too late to help them.

The best time to seek the help of knowledgeable franchise counsel is when you are buying a franchise.

Here are the top 10 reasons why:

  1. Franchising is complicated.
  2. Unless you have a lot of experience buying franchises, you don’t know what to look for.
  3. If you cannot afford a qualified franchise attorney, you cannot afford the franchise.
  4. Lawyers who do not practice franchise law cannot effectively help you.
  5. Qualified franchise lawyers can educate you on the best way to search for a franchise and how to use their services.
  6. Qualified franchise lawyers start with an investigation of the franchise system and the Franchise Disclosure Document, not the franchise agreement.
  7. Good counsel can help you avoid selecting the wrong franchise.
  8. Knowledgeable franchise lawyers have resources and connections that you likely don’t.
  9. Proper negotiation of a development or franchise agreement is a matter of timing and nuance.
  10. The cost of a good franchise lawyer may not be more than 2-3% of your overall investment.

There are many other reasons, but you get the picture. Lawyers who practice regularly in the franchise arena (many of whom are members of the American Bar Association Forum on Franchising) can “read between the lines” of a Franchise Disclosure Document, know what is missing, and are able to detect a bad deal or even a scam.

The most effective use of a franchise lawyer may be taking pass on that franchise deal that could have resulted in the loss of your home, retirement fund and savings account, not to mention that loan from your mother.

Choose wisely but choose an experienced franchise lawyer first!

Jim Meaney is a lawyer with Zaino & Humphrey, LPA in Columbus, Ohio who has represented franchisors and franchisees for nearly 30 years. He is also the author of How to Buy a Franchise. Visit www.ohiofranchiselawyer.com for more information or contact Jim directly at 614.975.9876 or jmeaney@zandhlpa.com

Low Cost Franchising - Options for Affordable Franchising

Fortunately, there are numerous excellent low-cost franchise options available, and those options span nearly every industry an entrepreneur could imagine.

Where Is The Best Location To Open Your Franchise?

One critical factor to consider when you are thinking about opening a franchise is whether your location is suited for a franchise and which franchise suits your area the best. One thing that makes this consideration slightly easier is the notion of franchise territories. Most, but not all, franchises in the US are set up so that they grant exclusive territorial franchise rights to their franchisees to help prevent the issue of geographic competition.

What Would You Do with $25,000?

Have you ever had one of those days when you were just kind of fantasizing about what you would do if you had a crazy amount of money? I had one of those a couple of weeks back when I was looking for a new apartment. I decided to go onto an NYC realty site and take a look at what paying an absurd amount of rent gets you in the city. I was looking and came across one for $25,000 a month (and that’s nowhere near the top end) and just had to laugh. Of all the things you could do with $25,000 - paying one month’s rent on an apartment seems pretty nuts to me. But that got me thinking, what can you do with $25,000 - from rational to fun to downright wacky.