Protecting Your Brand: Why Partnership With a Franchise Attorney Is Essential for Franchisors

You have the ideas, they have the expertise. Many franchisors do not start a franchise because they are franchise experts. Plenty of franchisors are driven to the model after successfully launching a brand and realizing that the franchise format would allow them to chase more aggressive expansion without sacrificing the company’s culture or small business feel. 

Whether you’ve researched the franchise model and are ready to take the leap into the industry or you’re an experienced franchisor, chances are that the majority of your expertise still lies with your brand. There are many legal considerations, requirements and processes that go into building a successful franchise, and this is where a franchise attorney can step in.

What Does a Franchise Attorney Do?

By bringing a franchise attorney into the fold, you, as the franchisor, can focus all of your energy on the brand itself — team support, strategy, branding, new offerings and training for local owners. A franchise attorney can guide you through legal documents, protections, negotiations, compliance and, if necessary, dispute resolution.

“As a franchise attorney, I help concepts to franchise their business as well as those that are already franchises,” said Carlos White, partner at Lathrop GPM LLP. “My constant goal is, ‘How can I help them achieve their business goals associated with franchising?’ That could be advising them on the regulatory aspects of it to make sure everything is kosher, transactional aspects for when they’re entering into deals and even business policies and objectives.”

Franchise Law Is Wide-Reaching and Very Complex, and Franchisors Have an Ongoing Need for Support

To start, it is highly recommended that Franchise Disclosure Documents, which should be updated annually, be reviewed by an attorney before they are made public. During this review process, a franchise attorney can ensure all information is presented appropriately and give feedback on other guidelines — like those for franchisees’ use of intellectual property — that may show up in the franchise agreement itself.

There are also specific guidelines surrounding where and how franchisors can market their opportunity, and having a go-to franchise attorney can help franchisors ensure they don’t end up in hot water over something as simple as a disclosure oversight or slight miswording. 

Similarly, franchise attorneys can support the franchisor in proceeding with legal disputes should they be necessary. Though it’s not ideal, franchise-related lawsuits are not uncommon, with both franchisors and franchisees making accusations about the other party’s violation of the franchise agreement. For franchisors who find themselves in this situation, a franchise attorney who already understands the ins and outs of the business and the brand’s specific franchise agreement can be incredibly valuable.

More Than Just an Attorney

Franchise attorneys sit at a unique intersection in their field. Franchise law is a broad category that encompasses aspects of contract, trademark and unfair competition law, and partnering with an attorney who has a background in franchising specifically allows for an even better experience. 

Identifying a single person with specific knowledge of the industry also allows you to nurture a single relationship instead of trying to identify and coordinate a handful of attorneys, each with different areas of expertise. 

And in addition to this rich expertise, many franchise attorneys can bring additional resources and benefits to the relationship.

“The franchise ecosystem is kind of small. Everyone knows each other,” White said. “Everyone has the same kind of connections and relationships, typically, but when you start having more diversity — whether that’s racial, gender or geographical diversity — that’s where the real value comes in. It’s all interconnected, and we not only have to do the work correctly, but we also have to be in a position to provide opportunity and create networking in the ecosystem to really incubate and help our clients grow outside of just the basic legal work.”

For example, White explained that he is the franchise impact ambassador for the city of Dallas. In addition to his role as an experienced franchise attorney, he has a unique opportunity to help franchisors looking to grow in Texas by making connections and ensuring franchisors have relationships with relevant economic development corporations throughout the state.

When’s the Right Time To Engage a Franchise Attorney?

Notably, some franchisors may see hiring a franchise attorney “before it’s necessary” as a waste of resources. Investing in the help of these individuals early in the journey has clear benefits, including — but not limited to — stopping potential legal challenges before they even start.

“Another perk of having a franchise attorney is the privilege,” White said. “Unlike a lot of other consultants, who you don’t have attorney-client privilege with, a franchise attorney offers a space where you can speak frankly and candidly about your business objectives and pain points knowing that that type of information cannot be shared. From there, you can develop a game plan to make sure that your trade secrets and strategies are protected as you continue to move forward.”

Because franchise attorneys know the industry so well, they can walk you through the entire process, both saving you money and ensuring you can continue to focus your time and attention on the development of your franchise.

Find more resources to help you thrive in franchising:

• 1851 Growth Club
• Franchise Lawyers: Navigating Legal Dynamics in Franchising
• Managing Franchisee Expectations: 5 Key Strategies
• Franchise Registration States | Essential Info