Franchise Legal Players: Keith J. Kanouse of Kanouse & Walker, P.A.
1851 Interviews the Highest Profile Attorneys in Franchising for the 2018 Franchise Legal Player Awards
Name: Keith J., Kanouse
Firm: Kanouse & Walker, P.A.
About Your Firm: The legal expertise of Kanouse & Walker, P.A. is in the areas of corporate, securities and real estate law, with an extensive practice in franchise, business opportunity and distribution law. The Firm represents entrepreneurs, franchisors, franchisees and their companies in all stages of a company's life -- formation, financing, operation, expansion and sale.
Website: www.Kanouse.com
What makes your firm stand out as a resource for the franchise industry?
I have been practicing franchise law since before the FTC Franchise Rule was enacted. While most of my practice is devoted to franchisors, particularly start-up franchisors, I also represent franchisees. As a result I understand both sides of franchising. I was the Co-Chair of the American Association of Franchisees and Dealers Fair Franchise Standards Committee and the principal draftsperson of the AAFD Fair Franchising Standards. I have also work on 41 cases as an expert witness on franchise industry customs and practices. I have written numerous papers on various franchise issues, have spoken at the ABA Forum on Franchising’s Annual Meeting, have written 3 books and co-authored 3 others and had a national television show on public television for 6 years called “Start Your Own Business.”
What is the No. 1 thing a franchisor/franchisee should look for when identifying the right franchise attorney?
Experience in franchise law is the most important criterion.
When it comes to your work, what makes you happiest?
I enjoy assisting clients in accomplishing their business objectives.?
What are your top concerns for the franchise industry in the next year?
1. I think the NLRB has a political agenda in the “joint employer” issue due to a desire to create collective bargaining groups containing all the employees of the franchisor and its franchisees. The traditional franchise business model should not create joint employer status for a franchisor, or an agency relationship or vicarious liability of the actions of franchisees and their employees.
2. I think the typical franchise agreement is too one-sided in favor of the franchisor. Franchisees are not equally sophisticated and do not have equal bargaining power. Franchisees can be their own worst enemy by not hiring an accountant and a franchise attorney at the time of purchasing a franchise, area development rights or area representative rights. They treat buying a franchise as like they were buying a car. I would be in favor of a federal franchise relationship law. Why should franchisees in certain states have extra protection while franchisees in most other states have none?. Disclosure is great but merely disclosing abusive franchise provisions does not eliminate these provisions from the franchise agreement.
3. I would also favor and have advocated for years, the creation of a single franchise registry administered by the FTC and preempt state registration requirements. This would be consistent with President’s Trump’s desire to eliminate unnecessary and burdensome regulation.
What are you most optimistic about in the franchise industry in the next year?
I have always thought that franchising in a great tool to expand a business, create more outlets of distribution, more opportunity for people to run their own business and more employment opportunities. As the economy continues to grow and credit expands, so will franchising.