2025's Top Franchise Legal Players: Robert Zarco - Zarco Einhorn Salkowski

Legal Player: Robert Zarco
Firm: Zarco Einhorn Salkowski, PA

Robert Zarco’s path into franchise law is a story all its own. He grew up working and saving money at a young age, running a landscaping business and negotiating his own contracts before most teenagers even had jobs. By the time he was 15, he had saved $54,000. Driving past McDonald’s and Burger King in the 1960s, he told his parents that one day he would own one because, in his eyes, franchising meant wealth. Years later, as a young lawyer, Zarco found himself representing Burger King franchisees in what became a landmark case — one that opened his eyes to the darker realities of franchising and set the course for his career.

In 1992, Zarco opened his own law firm, quickly winning a precedent-setting decision on the implied covenant of good faith and fair dealing. He used that victory to build momentum, becoming known as “the equalizer” for franchisees who otherwise lacked the financial ability to fight back against franchisors. Today, Zarco Einhorn Salkowski, PA is recognized as the largest franchisee practice in the world, representing thousands of franchisees from more than 500 brands across 45 states and 23 countries.

1851 Franchise reached out to Zarco 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?

Robert Zarco: That is a story of stories. I started working when I was seven years old in the landscape business. By the time I was 14, 15 years old, I had already saved $54,000. I knew money from a very young age.

My parents used to drive us out to dinner, and we would pass by a McDonald’s or Burger King. This was 1964, 1965, and they were the new thing in town. There were droves of people outside these locations. I told my parents, “Wow, one day, I’m going to own a Burger King or a McDonald’s because I want to be rich.” At that point, my impression of franchising was that if you owned one, you would be instantly wealthy.

Fast forward about 18 years — I’m a young lawyer. A partner of mine gets a case referred from Massachusetts: Scheck v. Burger King. It landed in Florida because the franchise agreement had a venue clause requiring disputes be filed there. When I saw the case and what happened to that franchisee, I became personally offended. His financial position was devastated by the aggressive and wrongful acts of Burger King.

I started representing other Burger King franchisees, but my partners didn’t allow me to fight the way I believed those cases needed to be fought. So I left and opened my own law firm in April 1992. Six months later, I won a landmark decision on the doctrine of the implied covenant of good faith and fair dealing.

I plastered that decision across the country’s media. There was no internet back then, but there were fax machines, and I sent it everywhere. Overnight, I became known as a franchise lawyer. I realized that franchisees could not defend themselves, so I started taking cases on contingency. I became the equalizer — giving franchisees access to the courthouse when they otherwise couldn’t afford it. From there, I built the largest franchisee practice in the world. It’s been the ride of a lifetime.

1851: What is the most important thing franchisors and franchisees can do to protect themselves?

Zarco: The most important thing is to look out for the franchisees’ financial well-being. Franchisees are the heartbeat of a system. They’re the boots on the ground with their finger on the pulse of consumer demand.

A franchisor must have a viable economic model that provides profitability so that franchisees can support their families and their employees, who then provide stable operations and goodwill in the community. Franchisors need to be fair and honest and make decisions that benefit both sides. If a franchisor just looks to squeeze every last dollar without regard for the franchisees’ bottom line, that’s when they damage the brand — and ultimately the consumer, too.

1851: What is the single largest legal mistake brands make?

Zarco: Lack of communication. When franchisors don’t communicate and make unilateral decisions without consulting franchisees, it’s like navigating treacherous waters on a ship without engines or a rudder.

Too many franchisors, especially those run by private equity, are focused on short-term profit bumps tied to exit strategies. That might work for five years, but it’s destructive in the long term.

1851: How important is the information in Item 19?

Zarco: It’s important, but franchisees should not rely on it. Too often, franchisors either hide behind disclaimers or present data that doesn’t reflect the realities of a specific market.

Some say, “We do not make financial performance representations,” then allow brokers or executives to make statements off the record. Others present averages from locations in places like Miami or Los Angeles, which don’t translate to markets like Minnesota or Cincinnati.

My advice: never rely solely on Item 19. Do real due diligence. Hire experts for demographic studies. Sit inside a store for a day and count customers. Interview franchisees in your target market. If you rely only on what the franchisor says — especially at Discovery Day — you risk buying into a system without fully knowing what you’re getting.”

1851: How does Zarco Einhorn Salkowski stand out as a franchise law firm?

Zarco: We are pioneers. We represent more than 45 franchisee associations — I don’t know another firm that comes close. Because of our financial strength, we can take cases on contingency or hybrid fees. That gives franchisees the key to the courthouse.

We’ve created case law that shaped the entire industry. We’ve given franchisees a voice. That’s what makes us stand out.

1851: What is the best business advice you have received in your career?

Zarco: The best advice I’ve received is to follow your passion and only do work you love. I could have retired 15 years ago, but this is what I enjoy. I get tremendous satisfaction from saving a family’s home, keeping kids in college, or preserving a marriage that might have been destroyed by financial stress.

And another thing that has made me very successful is my business background. I have an economics degree from Harvard and almost an MBA in finance and accounting. Every franchise case involves financials — P&Ls, balance sheets, EBITDA, labor costs, food costs, rent ratios. Most lawyers don’t understand this, but I do, and it makes me a stronger advocate.

When you combine that business knowledge with legal expertise, you become a scary foe to those who come up against you.

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.