Top Franchise Lawyers: Jonathan Barber, Esq. of Franchise.Law

1851 interviewed Franchise.Law attorney Jonathan Barber, Esq. about the state of franchising, the NLRB joint-employer ruling and what he loves about franchise law.

About Jonathan Barber, Esq.:

Jonathan Barber, Esq. learned everything he knows about practicing franchise law from his former boss — and now law partner — Jason Power. The two of them formed their firm in 2016 and eventually rebranded as Franchise.Law. Now, after practicing for five years, the two represent around 100 franchisors in transactions and litigation.

About Franchise.Law (from firm’s website):

Jason Power and Jonathan Barber met while working at another law firm. Together, they launched Franchise.Law on May 5, 2016 with the vision of developing lifelong relationships with their clients, promoting transparency in billing practices, building a family-focused law firm, and becoming a major player in the franchise industry. Jason’s deep network of contacts and decade of franchise experience combine with Jonathan’s entrepreneurial spirit and client service skills to offer our clients exceptional legal franchise services.

1851 Franchise: What are some of the things you like about working in the field?

Jonathan Barber: I love working with franchisors because they are talented entrepreneurs with a mission to better the lives of others through business ownership. I can get on board with that. Franchise law is such a niche practice, so we really get the opportunity to master one area of law. Also, the community of franchise lawyers is very small and tight-knit.

1851: What is something you think every franchisor should know about franchising?

Barber: For emerging franchisors, having an effective state registration plan is key to success. Sometimes, newer franchisors want to "ile everywhere, but they may end up wasting money by not selling franchises in half the states they register in. Then, they have to renew those registrations the following year to keep them effective. Some states, like New York, take a long time to get into, so registration should be sought proactively. Other states, like Wisconsin, make a franchisor's registration effective upon filing. In those notice states, it doesn't make sense to file unless the franchisor is targeting or receiving interest from those particular areas.

1851: What is something you think every prospective franchisee should know about franchising before diving into the industry?

Barber: Franchisees trying to negotiate the entire franchise agreement probably won’t get too far. Franchisors have many reasons to keep their agreements. The key is leverage. If a prospect is buying in a smaller franchise system, they may have bargaining power. If they are buying a large, multi-unit pack in a smaller system, they likely have bargaining power. However, if a prospective franchisee is buying a single McDonald's franchise, they won’t have any leverage and if they don't take the deal as-is, the guy behind them in line will.

1851: What’s your take on the new NLRB joint-employer ruling?

Barber: Franchisors should stay out of their franchisee's employment activities. Franchisors can prescribe staffing levels and minimum credentials, but if they’re taking an active role in their franchisees' hiring practices, they’re most likely going to be considered a joint-employer.

1851: What do you see as the biggest or most interesting topic in franchising over the next year and why?

Barber: Revenue recognition is going to be a huge topic in the industry. I represent a lot of startup franchisors, and they're going to have a hard time overcoming financial assurance obligations in registration states if they have to amortize the recognition of their revenue over a number of years.