A Franchise Attorney With 20-Plus Years of Expertise Explains How to Choose a Firm

When franchisees are starting out on their business venture, many focus on getting a strong team assembled. But in addition to the staff for the operation, another person all business owners should consider hiring is a lawyer that has franchising law expertise. Their role will be instrumental in making sure their business is following the correct legal processes. 

Franchising is a complicated industry with many rules, regulations and laws at both the federal and state level. It serves a business owner well to have a lawyer on hand that is well-versed in the legalities involved with the franchising model. When vetting a number of firms to decide who to hire, there are several factors to consider and questions you should be asking each group, said Jeff Wheelock, attorney at Dickinson & Wheelock, whose firm deals in mostly franchise law.

Wheelock has over two decades of experience focusing on franchise law. He represents clients on both sides of the process and has written or reviewed over 450 FDDs. His main role is either helping people to franchise their business, handling litigation and arbitration, and helping them understand documents.

“Experience is tantamount. Franchise law and the negotiations and the contracts that are associated with it are very complex, and so you want somebody, who, this is what they do,” Wheelock said. “For franchisees, there's a lot of value in having somebody that has insight, having drafted Franchise Disclosure Documents and represented franchisors as well, because then they understand the process and the way of thinking.”

He advised that franchisees ask about an attorney’s experience in the franchise sphere and inquire how many franchisees and franchisors they have represented. Ask for specific numbers, Wheelock said. He recommends putting each lawyer through an interview of sorts. 

“Be a sophisticated consumer of legal services,” Wheelock said. “Ask them, ‘What percentage of your practice is franchise? How much do you think this is going to cost? Do you have a litigation background?’ You want your franchise attorney to have some experience in litigation and arbitration, in case things wind up being problematic.”

He also warned about trying to save money by choosing a lawyer that has the cheapest rate. 

“You get what you pay for. I am aware of groups and attorneys that will charge you a low amount, but you’re not getting more than an hour and a half or two hours' worth of service. You can’t properly go through an FDD and a franchise agreement in that amount of time,” Wheelock said.

Lastly, it’s best to ensure you are hiring someone qualified and capable from the get-go, Wheelock said. He has many clients come to him asking to fix another less-knowledgeable lawyer’s advice that steered them wrong.

“There are lawyers out there that just don't know what they're doing. They will advise franchisors incorrectly, and they will get investigated by the Federal Trade Commission,” said Wheelock. “If they had done it at the beginning with somebody who really has an expertise in franchising, they wouldn't be in that mess.”