Top Franchise Legal Players: Alexander Tuneski, DLA Piper LLP
1851 Franchise’s annual showcase of the top players in the franchise industry is back. Meet Alexander Tuneski and hear his insights on legal issues in the franchise space.
- Honoree: Alexander Tuneski
- Role: Partner, DLA Piper LLP
Alexander Tuneski has been a partner with the global law firm DLA Piper LLP since 2020. With more than 20 years of experience as an attorney, Tuneski specializes in representing franchisors both in the U.S. and internationally. He handles a wide range of transactional and regulatory matters, including franchise-related mergers and acquisitions, trademark licensing and compliance with federal and state regulations.
In addition to being named one of 1851’s “Top Franchise Legal Players” every year since 2017, Tuneski has also been named a “Super Lawyer” by Super Lawyers magazine since 2015 and a “Legal Eagle” by Franchise Times since 2014 for his work as a franchise attorney.
1851 Franchise reached out to Tuneski to learn about how franchisors can protect their brand and avoid legal mistakes. Check out his insights below.
1851 Franchise: What do you see as the most important things franchisors should do to protect their brand?
Alexander Tuneski: The most important thing is to find dedicated, qualified franchisees that are committed to the brand. Operating and becoming a member of a franchise system is the ultimate team sport — every franchisee has to rely on each other to be a team player to ensure that customers have uniformly superior experiences at every location. Just as a superb operator can make a lifelong customer, a bad operator can damage a brand immeasurably. It is imperative for franchisors to carefully screen those joining the system and work closely with franchisees to ensure that they’re implementing the vision and system for the benefit of that franchisee and the entire network.
1851: How important is the information in Item 19 of the Franchise Disclosure Document?
Tuneski: Item 19 is an invaluable tool in the franchise sales process, as it enables franchisees to make a fully informed investment decision. As a franchisor, you want your franchisees to know exactly what they’re getting into, as a franchisee that comes in with unrealistic expectations is a franchisee that may be more likely to formulate a flawed business plan or end up frustrated with their investment, leading to a dispute. As a result, it’s imperative for franchisors to craft Item 19s that are accurate, transparent and helpful for franchisees considering such an investment.
1851: What is the single largest legal mistake brands make?
Tuneski: The biggest mistake is not investing enough resources into creating a solid legal foundation in their early stages of franchising. In many ways, building a franchise system is like building a house — you want to be sure you start with a solid foundation so that you can devote resources to building a bigger house, rather than spending all of your time and money trying to repair what you already have built.
Some start-up franchisors don’t understand how critical the franchise disclosure document, franchise agreement and related documents and processes are for the long-term success (as well as the overall valuation) of their franchise systems. As a result, faced with many decisions as to how to invest limited capital, some franchisors choose to cut corners with their legal budget. All too often, these shortcuts lead to costly disputes, disgruntled franchisees and a materially lower sales price when the systems are eventually sold. As the agreements are the core of the franchisor-franchisee relationship, it pays to make sure that these documents adequately protect the system and that best practices are implemented on day one.
1851: How do you stand out as a franchise law firm?
Tuneski: DLA Piper LLP’s franchise group has been consistently recognized as the leading franchise practice in the world. For 18 years, DLA Piper has been the top-ranked franchise practice by Chambers USA, which is the leading legal rankings guide. With 25 lawyers in the United States that exclusively practice franchise law, we have unparalleled depth and experience in both transactional and litigation matters.
In addition, DLA Piper is also one of the largest law firms in the world with over 90 offices in 40+ countries. This global platform enables us to have subject-matter experts within our firm on all issues facing franchisors, as well as the capability of providing services to our franchisor clients around the world.
1851: What is the best business advice you have received in your career?
Tuneski: If you do things the right way, good things will happen. This simple spin on the golden rule rings true particularly in the franchise industry, which is built on relationships and trust. Franchisors that look out for their franchisees and work to protect their franchisee’s interests typically tend to do well themselves. Those who look for a quick buck or take advantage of their partners often don’t make it very far. If you operate honestly and care for others, everyone will end up in a much better position at the end of the day.
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.
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