If you’re smart enough to hire a franchise lawyer to look over all of the documentation you’ll be receiving as a prospective franchise owner, including the actual franchise agreement, (contract) it’s pretty safe to assume (since you’re paying for legal advice and counsel) your lawyer will have your best interests at heart.
But, you have to be willing to crack out your checkbook. This is not the time to be cheap.
However, this is the time to check out some (5) stupid reasons for not using…for not hiring a franchise lawyer before you buy a franchise.
Here they are.
I’ve worked with a lot of people that have MBA’s.
Some of them are not only smart…and business-savvy, they’re realistic about the things they know and the things they don’t. But, some of them…well…
I work with a lot of CEO’s…ex-CEO’s actually. CEO’s that have lost their jobs and are “moving on to their next life adventure.”
Some of my best interactions have been with former company CEO’s and former company presidents. A lot of them now run very successful franchise businesses. But, a few of them have wanted to do their own thing.
“I ran a $30 million company, Joel. I know how to read balance sheets, I’ve negotiated multi-million dollar deals, and I certainly know how to read a contract. I really don’t feel that I’ll need a franchise attorney to help me figure a lot of this out.”
I’ve worked with a good number of clients who have told me the following when it came to franchise agreements…
Not true, according to franchise development expert Michael Seid, who says that some things may be negotiable in your franchise agreement.
I’ve heard this one-or something pretty similar, many a time.
Franchise Tip: If your neighbor happens to be a lawyer, make sure he or she is a franchise lawyer. Franchise law is not only complicated…and always changing, it’s different in every state. Using the free legal services of your neighbor may sound good, but it may end up costing you more in the long run.
Although the following statement may be obvious to you, I’m going to share it with you anyway.
An accountant isn’t a lawyer.