Many people looking to start a franchise system or evaluate a franchise opportunity ask for recommendations for franchise lawyers and consultants. This is a smart move. Having the right franchise development expert by your side to help you turn your business into a franchise or buy a new one can prevent costly mistakes and help ensure a successful franchising experience.

The Role of Franchise Law

Franchise law focuses on how franchisors must present their opportunities, but it doesn’t dictate the structure, fees, or obligations of the franchise itself. Many new franchisors mistakenly assume that all franchise agreements are similar, even within the same industry. This misunderstanding can lead to serious problems later on.

Franchising is more about business strategy than legal rules. If you’re considering franchising your business, you need to explore different options and make key decisions before speaking to a lawyer. Your franchise structure and business model should be well-defined before legal documents are created.

Franchises Are Not One-Size-Fits-All

To see how different franchise offerings can be, compare the franchise agreements of McDonald’s, Burger King, Wendy’s, Five Guys, and others. Each has unique elements such as:

• Investment requirements
• Franchisee qualifications
• Fees (initial and ongoing)
• Marketing obligations
• Supply chain rules
• Training and support
• Territorial rights
• Renewal terms

Understanding these differences highlights why professional guidance is essential.

The Importance of Legal Advice for Franchisees

If you’re thinking about buying a franchise, hiring a franchise lawyer before signing any agreement is critical. Many franchisee-franchisor disputes arise because the franchisee didn’t fully understand their contract. If you skip legal counsel, you may end up in a contract that doesn’t meet your expectations, with no one to blame but yourself.

Educate Yourself Before Hiring a Professional

Before hiring a franchise consultant or lawyer, take the time to learn about franchising. A basic understanding will help you ask the right questions and make informed decisions. Resources like Franchising for Dummies and Franchise Management for Dummies are excellent starting points.

The International Franchise Association (IFA) also offers valuable insights through:

• Free online articles
• Newsletters and magazines
• Research from the IFA Education Foundation
• IFA Academy courses
• Industry conferences and networking events

Choosing the Right Franchise Advisors

For Prospective Franchisors

• Franchise Consultants: Work with consultants who specialize in business decisions that shape the terms of your franchise offering.
• Franchise Lawyers: Once your business model is defined, hire a lawyer to draft the necessary legal documents. Franchise consultants often recommend reputable lawyers.

For Prospective Franchisees

Be cautious when dealing with franchise brokers. Many brokers represent specific franchises and earn commissions from franchisors. While they can provide useful insights, they should not replace independent legal counsel.

How to Find a Qualified Franchise Lawyer

Not all lawyers are knowledgeable about franchise law. Most general practitioners lack the specialized experience needed. Look for lawyers who:

• Are members of the American Bar Association (ABA) Forum on Franchising
• Have a strong track record with both franchisors and franchisees
• Are recognized by their peers as experts
• Have experience with franchise agreements and disputes

MSA Worldwide offers a Franchisee Lawyers List, organized by state, to help you find qualified professionals.

Conducting Due Diligence

• Check references: Speak with past and current clients to evaluate the lawyer’s expertise.
• Review their experience: Look at their website, professional background, and case studies.
• Use reputable directories: Resources like Martindale-Hubbell can provide insights into a lawyer’s qualifications.
• Don’t base your choice on hourly rates: The cheapest lawyer is not always the best. Instead, ask for a total cost estimate for the services you need.

Does Location Matter?

With modern technology, location is less important when selecting a franchise lawyer or consultant. The key is to choose the best professional, not the closest one.

Get Professional Recommendations

If a franchise lawyer isn’t the right fit for your needs, ask them for recommendations. The franchise legal community is small, and experienced professionals know who is reputable.

Final Thoughts

Choosing the right franchise lawyer and consultant is one of the most important decisions you will make. Take your time, do your research, and invest in the best advisors for your franchise journey.