Franchise Legal Player: Brian B. Schnell
Firm: Faegre Drinker Biddle & Reath LLP
Brian B. Schnell has spent more than three decades immersed in franchising, serving as a strategic advisor to brands navigating growth, compliance and long-term system sustainability. As a partner at Faegre Drinker Biddle & Reath LLP, Schnell works with franchisors at every stage of development, helping them balance legal rigor with operational and commercial realities. His approach goes beyond documentation, focusing instead on building durable systems designed for long-term brand success.
1851 Franchise connected with Schnell to discuss the legal issues brands may be underestimating, the importance of compliance culture and the strategic lessons that have shaped his decades-long franchise career.
1851 Franchise: What originally drew you to franchise law, and what has kept you engaged in the space over time?
Brian B. Schnell: I had the good fortune of being assigned to work on an FDD (at that time a UFOC) for Dairy Queen as my very first project as a lawyer back on September 8, 1987. Not planned. Just good fortune. I have been in franchising every single day of my professional life since then (spanning more than 38 years). What has kept me engaged are the people in franchising and the opportunity to make a difference for so many franchisors and franchisees in real world ways that allow franchisors to grow, protect and evolve their brands for all the system’s stakeholders.
1851: As franchising continues to evolve, what legal issue do you see brands most often underestimating today?
Schnell: Legal issues regarding AI and related data protection/privacy issues. Part of the challenge with AI and data protection/privacy is the constantly evolving nature of AI technology, potential uses, opportunities and challenges and laws regulating AI and privacy. It is hard enough for a non-franchise organization to address these issues. It is more difficult for franchisors with independently owned and operated franchised locations to do so. Right now, we have our technology/privacy lawyers working with our franchise lawyers to help our franchisor clients design and implement strategies in these areas.
1851: In your experience, where do emerging franchisors tend to get tripped up from a compliance or documentation standpoint?
Schnell: Too many emerging franchisors believe franchise compliance and documentation is a check-the-box exercise, rather than establishing a compliance culture where compliance is a core value for all on the franchisor’s team. With a compliance culture (playing by the rules is a core value), the franchisor can build on it across the entire franchise system and for all brand stakeholders.
This commitment to compliance culture can then positively impact other areas. One example is franchise relationship issues arising from system changes. Franchisees want a voice, not a vote. Too many franchisors seek command-and-control authority over system change and underestimate the power of including franchisees in those discussions. Franchisors can still make system change decisions without giving up authority and including franchisees in the process. Too often, command-and-control decisions result in litigation and delays in systemwide adoption. A “compliance is a core value” commitment can mitigate those system disruptors.
1851: How should franchisors be thinking about risk management as they scale into new markets or add new unit growth strategies?
Schnell: Risk management should be viewed through the lens of long-term success and sustainability as well as the franchisor’s exit strategy. Slow and steady growth based on solid unit level economics is ALWAYS the approach that will result in long-term success and sustainability for franchisors and franchisees. Slow and steady can be defined differently across franchisors. One key to defining slow and steady is whether the franchisor has the team and resources (infrastructure, supply chain and technology) in place to effectively open and support locations in new markets or different strategies/channels.
1851: What distinguishes your approach or philosophy when working with franchise clients?
Schnell: Be a true strategic advisor by getting beyond the legal issues and understanding how the legal issues, commercial issues and human issues are all involved in addressing a particular challenge and opportunity and then help devise a strategy that can be implemented to achieve the client’s desired outcome.
1851: Looking back, what lesson from your legal career has had the greatest impact on how you advise clients today?
Schnell: The lesson goes back to my early years as a franchise lawyer working on behalf of Dairy Queen, where I had the opportunity to get to know Dairy Queen’s business (yup, it took some time to learn how to put the curl on top of cone), the business of franchising (and all of its nuances), the people involved and how all of those factor into understanding a client’s issue and then designing a strategy that can achieve the desired outcome.
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