I love Franchising Part 2

According to the International Franchise Association (IFA) nearly 4 percent of all small businesses in the U.S. are franchises; Government might not understand the true impact

It is estimated that there are more than 900,000 franchise businesses across 300 business categories in the U.S. which provide nearly 18 million jobs and generate more than $2.1 trillion to the economy. Franchising is a huge industry, yet, quite often, policymakers don’t understand the fundamentals of franchising enough to be mindful of its impact and the impact of their ideas.

With the spread of franchising in business, many have fallen in love with the impacts, structure and success of the industry – including those who represent brands and franchisees legally.

What do they love most about this industry?

Lane Fisher, Fisher Zucker: What I love most about franchising is that you get to work with extremely entrepreneurial people at all ages and in a diverse range of industries. Because franchising is a channel of distribution and not an industry, there is a larger degree of sharing and cooperation among competitors, allowing emerging franchisors to capitalize on the experience of others rather than learning everything through trial and error. I also think the trade association doe a terrific job assembling franchisors, franchisees and suppliers in one forum.

Amy Cheng, Cheng Cohen: I love being able to work closely with clients to grow their business. It is so exciting to have worked with some of my clients for 20 years and seen systems go from a few units to hundreds or thousands of units. I really feel like I am a partner with my clients. The franchise community is also like no other. It is a community filled with people who are truly generous with their time and knowledge. The support that I have received throughout my career from clients, colleagues, and even competitors is incredible. Without all this community, Cheng Cohen would not have been able to celebrate its 10th year anniversary this year.

Tom Spadea, Spadea Lignana: The people and the success stories. Done right, franchising is an exciting business and growth strategy for business owners. It allows the franchisor to exponentially grow a concept using the capital, passion and skills of other entrepreneurs. For the franchisee, it allows them to step into a system where their capital and skills are leveraged to bring them more success than they could otherwise achieve going at it alone. The entire system is based on a series of formal and informal agreements and covenants that set the boundaries of the relationships. As an attorney, what is there not to love about franchising? Just about every interaction needs to be documented, vetted for regulatory compliance and negotiated. We get to help clients in the biggest and most important business decisions they will ever make. The energy, enthusiasm and talents of our clients are endless and infectious.

Cheryl Mullin, Mullin Law: I think that business ownership, like home ownership, gives people a sense of self-worth. I also think that for many people the idea of being in control of your own income is more gratifying than a fixed paycheck, regardless of the amount.

Rupert Barkoff, Kilpatrick Townsend: Two things: First, I like working with established, recognized brands as well as start-ups. As to the latter, I am currently involved in two new systems, not as a lawyer, but instead, as an active investor. It is quite a change from being a lawyer, but there are so many lawyers who are frustrated businesspeople. I am glad that I am going to have this opportunity. I have told my friends that they will all be invited to the christening of my yacht once I make my fortune from these projects.

My second love is the congeniality of the members of the franchise bar. Though we often
appear on different sides of the table, some of my best friends in the world I
met through the American Bar Association’s Forum on Franchising and the International
Franchise Association. Though we may be competitors and sometimes adversaries,
the level of friendship participating in the franchise sector is awesome!