What Franchisees Should Know Before Hiring a Law Firm

If you’re venturing into the world of franchising or considering joining the industry, hiring an attorney may have crossed your mind. Franchising involves a multitude of legalities, and the abundance of legal jargon can be intimidating. Whether you have no legal experience or consider yourself well-versed, enlisting the help of a franchise attorney or hiring a law firm can greatly assist you in understanding your role as a franchisee.

To help you make an informed decision, we have compiled some important things you should know before hiring a law firm.

Franchise Experience

One of the most important things to consider before hiring an attorney is their experience in the franchise space. It’s essential to find someone well-versed in franchise law as well as the industry that your franchise falls within. As the legal counsels at Lanard & Associates note, franchise attorneys understand franchise agreements, Franchise Disclosure Documents (FDDs) and the intricacies of these types of deals.

“Franchise law encompasses rules and regulations at both the state and federal levels,” Lanard & Associates states on its official site. “It is essential to have someone on your side who understands this complex network and the impact these laws may have on your business venture.”

Additionally, search for a franchise-specific attorney instead of hiring a general business attorney. Find someone with tangible experience and a track record of successfully representing franchisees.

When to Hire

Knowing when you should hire an attorney is another important factor. It’s no secret that attorneys can be costly. Therefore, knowing when to engage their services can save you from any unnecessary expenses. According to franchise consultant Joel Libava, there’s really no need to hire a franchise attorney too early in the process.

“The time to talk to a franchise attorney is either right before or right after you visit the franchise headquarters for a Discovery Day,” said Libava.

Consult an attorney when you are sure about this investment rather than hiring one too early, placing them on retainer and paying them when they aren’t needed.

Don’t Be Cheap

Hiring an attorney does come with a price tag, but the long-term protection it provides is invaluable. Although the cost may vary depending on the attorney or law firm you choose and how long you utilize their services, some franchise attorneys offer flat rates for specific services. These types of services can include simple consultations, or reviewing FDDs and franchise agreements. It’s important to recognize that these flat-rate services exist so you don’t have to hire an attorney on retainer. Ultimately, protecting your investment should be your number one priority. As Franchise Business Review notes, having legal expertise on your side can help ensure that you’re not blindly entering uncharted waters.

Protect As Needed

If you’re already researching potential franchise attorneys, great! Having legal representation when you enter the franchising space is highly recommended. With their backing and a prepared budget, you can protect yourself and your investment.