Why Should A Franchisee Consultant/Broker Recommend An Attorney Review Of The FDD For His Or Her Candidates?

On Behalf of Lanard and Associates | Aug 4, 2016 | Firm News

I have often heard that franchisee consultants/brokers are concerned about recommending the services of an attorney to their candidates.  They are concerned that the deal that they have worked weeks or months to bring to fruition will be broken by the concerns of an attorney.  Remember, the skilled attorneys at Lanard and Associates are deal makers, not deal breakers.  I believe that recommending an experienced franchisee attorney review to every franchisee candidate is important to protect the interests of not only the candidate, but the consultant too.

First of all, whether a candidate requests a recommendation for an attorney review or not, recommending an experienced franchisee attorney, like the attorneys at Lanard and Associates, to your candidates prevents your candidate from using the local divorce, personal injury, employment, general business or workers comp attorney. The local attorney who may occasionally “dabble” in franchise law is likely going to recommend that your candidate walk away from the opportunity. The attorney who does not have experience in franchise law will not understand the nuances of the law and what can and cannot be negotiated. That inexperienced attorney will likely find the terms of the franchise agreement one-sided and harsh and recommend that his/her client walk away.

Secondly, if you recommend that your candidates use experienced franchisee counsel, like the attorneys at Lanard and Associates, you will take potential liability away from you if the business fails for the candidate/franchisee.  By merely making the recommendation, you have indicated to the candidate that the candidate should not rely on you for the decision to invest in the opportunity. The candidate must do his/her own validation, including a review of the documents by an experienced franchisee attorney.

Lastly, a candidate who uses our firm for an attorney review is much more likely to be successful because he/she starts out with a clearer understanding of the documents he/she is entering into, the obligations he/she will have to the franchisor and the expectations he/she should have of the franchisor.  A successful franchisee that you placed is a great basis of referral for other prospective franchisees.

The easiest way to recommend our firm to your candidates is to send an introductory email to both the candidate and Nancy Lanard (nlanard@lanardandassociates.com) and allow Nancy to then reach out directly to schedule time for a free consultation with the candidate.