A franchise lawyer is one whose primary practice is law. There can lawyers who help those interested in making a investment. The types of legal services offered by law of this type include negotiating franchise contracts, reviewing disclosure documents and sometimes negotiating the lease for the ultimate retail location. Fees for attorney are an hourly rate that ranges from a low of $300 to $600 or more per hour.
The second kind of lawyer are those who help companies that want to expand and sell franchises for their business model. A attorney of this type usually drafts franchise disclosure documents, the agreement and registration applications. There are approximately 14 states where a 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 lawyer may need to comply with in order for the company to offer or sell franchises in these states. Attorney 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 lawyer early in the process is best, whether you are thinking about buying a franchise or franchising a business. But with franchise it’s also important to be selective and savvy. Find a lawyer who, in addition to their law degree also has an MBA (Master of Business Administration) and you’ve narrowed the field to a select few. It’s surprisingly easy to do this. You can simply do a Google search for MBA franchise attorney. Now you’re dealing with a lawyer who understands both the legal and business issues that are both critical in the franchise industry. You’ve done a good job at this point, but don’t stop here. You can narrow the field and obtain the best of the best by finding a franchise, with an MBA, who also has franchise ownership experience. Whether you’re 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 lawyer, MBA and former, successful franchise owner – as opposed to someone who has never operated a franchise before. Finding a attorney, 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 law – and how long have they been practicing law exclusively?
(2) How many FDD Disclosure Documents (formerly called franchise offering circulars) have they have drafted and reviewed?
(3) What is the lawyer’s 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 lawyer’s experience representing franchise companies? What about representing individuals who want to buy a franchise?
(5) Does the lawyer have experience owning and operating a franchise? Was it a successful franchise? Knowing both sides of the fence is a great asset.
(6) In addition to a law degree, does the attorney lawyer have an MBA? As mentioned, this is especially helpful to advise in both the business and legal aspects of the industry. Do a Google search with “MBA 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, don’t amount to much. Membership in a franchise committee or association simply means the attorney lawyer pays a yearly membership fee. There is no prior skill in law required and a large number of members join to learn about subjects they don’t know very well.