Franchise Legal Player: James M. Susag
Firm: Larkin Hoffman
James M. Susag has built a distinguished career representing franchise brands in high-stakes litigation and complex disputes. As a shareholder at Larkin Hoffman, Susag brings decades of courtroom experience to franchise law, helping franchisors navigate conflicts while protecting the long-term health of their systems. His approach blends practical litigation strategy with an understanding of how legal decisions impact the broader franchisor-franchisee relationship.
1851 Franchise connected with Susag to discuss the legal dynamics franchisors often overlook, how emerging brands can manage risk while growing and the lessons that decades in the courtroom have taught him about advising franchise clients.
1851 Franchise: What originally drew you to franchise law, and what has kept you engaged in the space over time?
James M. Susag: Almost 20 years ago, a senior transactional franchise attorney at Larkin Hoffman suggested that I become involved with franchise litigation because I had a reputation as a good trial attorney. The firm was looking for someone versatile who could handle cases in state and federal court, jury trials, arbitration and so forth. I had been a litigator for a little over a decade at that point, but had not done franchise litigation. I picked it up at that point and have done it ever since.
1851: As franchising continues to evolve, what legal issue do you see brands most often underestimating today?
Susag: I think the most important thing franchisors can do is have good communications with their franchisees on a continuing basis. In other words, don’t just sell the franchise—once franchisees are open, maintain communication and dialogue about day-to-day issues and bigger picture issues. This ongoing communication is absolutely vital to success for the franchisor and franchisee, and the avoidance of conflict.
1851: In your experience, where do emerging franchisors tend to get tripped up from a compliance or documentation standpoint?
Susag: As an emerging franchisor, it is important that prospective franchisees understand that you are a new system, and that your enterprise is still a work in progress. This can sometimes be gleaned from an FDD, but it needs to be stated directly so that everyone understands that there will be challenges along the way that more mature franchise systems have already worked out.
1851: How should franchisors be thinking about risk management as they scale into new markets or add new unit growth strategies?
Susag: Legal risk can be managed. Work with good legal talent and you can handle legal risk while expanding your business at the same time. I’m a big proponent of the philosophy that business strategy should not be unnecessarily hindered by fear of legal risk. Of course, business leaders should be cognizant of those risks, but it shouldn’t be their number one guiding principle.
We want to help franchisors grow lawfully and properly, but it pains me to hear a franchisor say, “We’d really like to expand in other markets but we’re too concerned about legal risks.” You can be mindful and understanding of both sides of the equation, but one should not dictate the other.
1851: What distinguishes your approach or philosophy when working with franchise clients?
Susag: I’m hands-on and responsive. If you’re working with me on a franchise litigation matter, you’re working closely with me and a very well seasoned team of attorneys who have successfully handled franchise matters in state and federal courts, domestically, internationally, in arbitration—in any setting you can imagine.
We are not daunted by challenging issues. A matter wouldn’t be in dispute if it were clear-cut, and in fact I do my best work in complex and ambiguous situations.
1851: Looking back, what lesson from your legal career has had the greatest impact on how you advise clients today?
Susag: I wouldn’t say there is a single lesson, but rather that 30 years as a litigator has taught me what to expect, and what to help clients expect. What can you expect in court? What can you expect in arbitration?
I am able to give real-world advice because I’ve lived these experiences and can help clients understand what’s coming from a cost perspective, from a time perspective and from an outcome perspective.
Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.