subject: Do I Really Need a Franchise Attorney? [print this page] Do I Really Need a Franchise Attorney?
The easy answer is yes. Before signing any contract you should have an attorney review it. But after 20 years and franchise development working with dozens of attorneys I might say that this is common sense bears further discussion.
First, if you decide to hire an attorney hire a franchise attorney. Franchise law is based on securities law not contract law. So you will find that your family attorney will not be sufficient.
Second plan to pay anywhere from $1000-$2000 for the service.
But look at the common sense factors before you spend all of that money.
The franchise company will change nothing material in the franchise agreement. Because to do so would require them to disclose the fact that they changed the franchise agreement for you and they would have to offer to change their agreement for every franchise owner that followed you. This would eventually become a nightmare for them to administer many variations of their franchise license agreement. A virtual nightmare for the franchise company's legal department
Most franchise companies who have been in business at least 10 years and the have signed their agreement hundreds of times. If there's anything unfair in the agreement this should come out during your franchise owner calls (validation calls). You should be asking the franchise owners if there is anything about the franchise agreement that they have regrets about.
Nonnegotiable items such as the fees including royalties, territories, and terms of the agreement are well spelled out in will be discussed with you in detail before the agreement is put in front of you for signatures. In fact the franchise company will go over every single paragraph of the franchise agreement with you if requested because they are more concerned that you recognize and understand your responsibilities then you are you.
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