Growing a Franchise
1851 Franchise’s annual roundup of the top legal players in the industry is back. Meet Brett Buterick and hear his insights on legal issues in the franchise space.
Legal Player: Brett Buterick
Firm: The Franchise Firm
Brett Buterick discovered franchising early in his legal career while working alongside his now co-founder and partner, Evan Goldman. Goldman was already well-established in the franchise industry, and as Buterick collaborated with him, he quickly recognized the depth, nuance and close-knit nature of the franchise law community. The field offered the perfect combination of law, business and human relationships. Buterick was hooked — and he has dedicated himself to the practice ever since.
1851 Franchise reached out to Buterick to learn how franchisors can protect their brand and avoid legal mistakes. Check out his insights below.
1851 Franchise: How did you fall into franchising?
Brett Buterick: I was practicing at my first firm when I started working with my now co-founder and partner, Evan Goldman. Evan was already well-established in the franchise industry and as I began working with him on franchise matters, I discovered a nuanced practice and a tight-knit community. Franchise law is the perfect confluence of law, business, and inter-personal relationships. I loved it and did everything I could to dive in and gain more exposure.
1851: What do you see as the most important things franchisors should do to protect their brand?
Buterick: Over the course of my practice, I have found the two biggest keys to brand protection are strong foundation building and an emphasis on sustainable growth. A proper system framework — meaning a well-developed and symbiotic legal, operational and financial machine — helps a brand operate like clockwork and allows it to effectively layer growth.
In layering growth, it is critical for brands to find the “right franchisee partner,” not just “a franchisee partner.” Proper vetting and analysis for brand fit, financial stability and operational capability — when coupled with proper registration and disclosure — saves franchisors countless headaches in the long run.
1851: How important is the information in Item 19?
Buterick: Item 19 has become an integral piece of the franchising puzzle. Clients increasingly rely on the ability to offer a financial performance representation during the sales process. In 2020, the number of franchisors that included an Item 19 financial performance representation in their Franchise Disclosure Document notched the 80% mark and the vast majority of franchisors have been incorporating a representation for quite some time.
Ensuring those disclosures are complete, accurate and made in accordance with the Amended Franchise Rule is critical for both compliance and best practices in any franchise sale.
1851: What is the single largest legal mistake brands make?
Buterick: Franchising is a marathon, not a sprint. Brands may want to expand as quickly as possible, but that mindset can lead to legal missteps and “quantity over quality” problems. It is very important that all franchisors ensure system protocols are in place and to confirm all disclosure obligations are accurately met before focusing on expansion efforts.
1851: How do you stand out as a franchise law firm?
Buterick: At The Franchise Firm, we take pride in keeping one step ahead of our clients in the development process. This means ensuring compliance with state and federal regulations where our clients want to be before they need to be.
Equally importantly, it means introducing our clients to the right resources for their next development stage. Whether it is an FSO to help accelerate growth, an operational executive to help ground processes or the right private equity partner for an acquisition, being the conduit for clients in each growth stage can be critical for brands without access to resources and connections we have been fortunate to build through decades of industry experience.
1851: What is the best business advice you have received in your career?
Buterick: Introduce good people to good people. Making connections that foster growth helps everyone. Talk, listen, learn what people need and try to help them find a solution. The process is always equally or more rewarding than the result.
1851 Franchise’s Supplier Database connects franchisors and franchisees with top legal experts. If you need guidance on agreements, compliance or disputes, click here for more information.
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