How to Expand Your Business Though Franchising 2014 | Page 19

Franchise Lawyers, Franchise
Development Companies... What is
the Difference?
FRANCHISE DEVELOPMENT to? If one, two, three years down
COMPANIES are groups of the line there is a problem, can
individuals who offer services

you call that attorney and are they

focused on franchising your

accountable to you?

business.

Generally, they are

are they will not be accountable

not lawyers but they will tell

to you and will tell you that all they

you that “they have lawyers”.

did was “prepare forms” that you

The implication being “hire us

approved. Also something even

and you can use our attorneys.”

more important is that under

Many try to relegate the “legal

these very unclear relationships,

aspects”

many of the FDD’s that I have

of

franchising

as

Chances

some “after thought” and sell

reviewed

you

services

by the franchise developer’s

like feasibility studies (where

lawyers - are extremely generic

someone tells you about your

and do not create the right

industry and whether or not your

platform

business is franchisable) and

business. So I think you need

marketing studies (about your

to find an experienced franchise

business). While there are certian

lawyer and he or she needs to

experienced and professional

be experienced in developing

development companies, there

franchise systems that from both

are many others that in many

a legal and business perspective

instances

(wrongly)

will work in the real world. Once

themselves as replacements for

you have developed a comfort

a franchise lawyer. Only problem

level with, your franchise lawyer

is that the lawyers of franchise

you should be speaking to him or

development companies, in one

her about your business model,

way or another, are beholden

your goals, where you would like

to the development company

to see the franchise go, and what

(as their source of business or

your expectations are. Once that

employment) and not to you

is discussed and understood, he

directly.

or she should provide you with a

on

consulting

portray

-

for

those

the

prepared

franchised

proposal and a plan about your
My question for these franchise

business, and the specific steps

development companies is, who

to develop your franchise.

are these lawyers accountable

STEP 2

YOUR
MANGEMENT
TEAM AND A STEPBY-STEP PROCESS
The second step is to put together
your management team and start
off on a step-by-step process.
Now, I will speak to you from a
franchisor standpoint. When I use
words like “management team,”
your first reaction may be “hey,
what do you mean by management
team? It is just me or just me and
my partner.” I know that for many
of you, you are a small business,
you may work with a family
member, a partner, maybe some
employees, and, so, you don’t have
some large franchising staff. What
I can tell you is that again, here to,
franchising is very scalable. As long
as you have the right expectations
- the right expectation about
growth and that you are going to
start off focused and disciplined then it is important to get started.
It is important to set the right
foundation, and then engage in a
step-by-step process, where you
sell one or two franchises, and,
over time, you build. So, your
management team might be you,
it might be a family member
with you, it may be a trusted
employee, and that is okay. A
key part of your “franchise team”
(not management) will be your
franchise lawyer.

GETTING STARTED