Although you might be tempted to scrimp on a lawyer because you are already sinking so much money into buying a franchise, this is not a good idea. As the old saying goes, you get what you pay for. If your uncle is a general business lawyer or your buddy is a family lawyer, you might be tempted to have them look at your contracts and help you through the process of franchising. But there are some distinct differences between general business lawyers and franchise lawyers. Hiring a franchise lawyer can really change the game for you in a positive way.

Business lawyers are trained to help clients with all aspects of running a business. In general, they help any business owner with situations big and small. Some of the most common tasks for a business lawyer include the following:

  1. Business lawyers can help you get the business started and assist with developing the specific type of business you need.
  2. They can help with compliance issues.
  3. They can assist you with acquiring or merging with another business.
  4. Business lawyers help solve contract disputes.
  5. They clear up any misunderstandings about real estate transactions.
  6. Business owners are adept at writing contracts.

Although at first glance business lawyers and franchise lawyers might seem very similar, a franchise lawyer just has more intricate understanding and experience with franchise law. Drumm Law only deals with franchise law, for instance, so naturally they would be more adept at the picky little details regarding franchises.

  1. If you are worried about the initial contract and the deal itself, a trained franchise lawyer can set your mind at ease.
  2. Franchise lawyers help to structure the royalty payments you will acquire from a franchise.
  3. They can help you understand the right of first refusal, where the franchisor can buy back a franchisee’s outlet.
  4. Franchise lawyers will be on your side to determine if you have a right to close or if you need to stick with your franchise obligation.
  5. If you need assistance understanding the territorial issues that arise, like where you can open a store, a franchise lawyer has the explicit information.

Because you will most likely be paying a lawyer either way (unless you can convince your lawyer uncle to look at your contracts for you and give you free advice), the best use of your money is to go for the lawyer with the most intimate knowledge of franchising law. Laws change so quickly and the FDD is so complicated, that the best use of your time and money is to go with a franchise lawyer.