07 December 2010
Business owners that want to grow their business through franchising sometimes attempt to do so without the help of experienced franchise attorneys. I think this is partly due to the fact that franchising is a way to grow your business with limited capital so it attracts business owners that may not have the money it takes to hire an expensive attorney.
Unfortunately, franchising is a heavily regulated industry and it is important to seek good legal help. As an attorney once told me when I was complaining about the cost of his services, you can pay for good help now or you can pay more later. Eventually, you are going to pay and it is a lot less expensive to do it right. In the worst cases, poor legal advice can cost you your franchise system.
You can still get a good deal on legal fees, but make sure that you hire an attorney with franchising experience. Not all attorneys are the same and you want someone who has done it before. It is not uncommon to hear of franchisors that received bad advice from attorneys who are not familiar with the ins and outs of franchising.
A final word of caution: don’t attempt to sell a franchise until you have worked with an attorney to get everything you need in place. It is expensive and risky to try to fix franchises that are sold without the proper registration.
By Christian Faulconer, Franchise Foundry CEO