Top Franchise Lawyers: Nancy Lanard of Lanard and Associates

1851 Franchise interviewed Nancy Lanard of Lanard and Associates about why she loves franchise law and where she sees the industry going in the near future. 

About Nancy Lanard:

Nancy Lanard, founder of Lanard and Associates in Pennsylvania, has been a franchise attorney since she was the in-house counsel to Nutri/System, Inc. That was 30 years ago, when Nutri/System was the number one weight loss company in the U.S., with 1,300 franchise locations and 500 corporate-owned locations. When Nutri/System declared bankruptcy, Lanard decided to start her own franchisee-focused law firm.

About Lanard and Associates (from firm’s website):

For more than 25 years Lanard and Associates has provided quality legal counsel to our clients. We are advocates for the interests of our franchisee clients across the country. If you are considering purchasing a franchise, we provide personalized representation to help guide you through this process one step at a time. We know that investing in a franchise is a big leap, which is why we are committed to crafting legal solutions tailored to suit your needs. Additionally, we are skilled at negotiating commercial leases, and helping our clients to avoid lease terms that are unfavorable to them or terms that put franchisees/tenants at a distinct disadvantage.

1851 Franchise: What do you enjoy about franchise law?

Nancy Lanard: I think franchise law is an underserved area of law in the United States. I used to represent emerging franchisors as well as individuals looking to invest in a franchise opportunity. I made a conscious decision to change the focus of our firm to solely representing individuals investing in a franchise, franchise resales and commercial leases for franchisees. I love working with individuals who are excited by franchise opportunities and being able to help them make their dreams a reality.

1851: What is something you think every franchisor should know about franchising?

Lanard: That franchisee attorneys are not trying to kill the deal with a prospective franchisee. Rather, they are retained to educate the prospect on the opportunity and the obligations that he or she will have. A franchisor should not be afraid to recommend an experienced franchisee attorney to its candidates.

1851: What is something you think every prospective franchisee should know about franchising before diving into the industry? 

Lanard: That even though a franchise agreement may not be negotiable, retaining counsel to review the documents is still an important part of the validation process. This is a very specialized area of law and other types of attorneys, including general business attorneys, often do not know what is typical and not typical in the franchise agreement and what to look for in the FDD.

1851: What do you expect to see as a result of the new NLRB joint-employer ruling?

Lanard: I think the proposed ruling back to the old rule is very positive for the franchise industry. To hold that a franchisor as a joint-employer with its franchisees, in essence, eliminates one of the main reasons for a company to decide to expand into franchising. I never thought the recent joint-employer ruling made sense, as franchisees are independent business owners who hire and fire whomever they choose.

1851: What do you see as the biggest or most interesting topic in franchising over the next year and why? 

Lanard: As a transactional franchisee attorney, I am concerned with the increase in failed franchise systems. I see many franchisors who are brand new with one location to their brand and virtually no funds in the franchisor’s bank account. To me, this is a huge red flag. How can a company start franchising their brand when they have not proven their model by opening more than one location and funding their own franchise company with sufficient funds? I have seen start-up franchisors with as little as $1,000 in their balance sheet. That seems unconscionable to me.