Evaluating franchise attorneys and franchise consultants can seem a daunting task. But the firm an individual or company selects to assist its entry into franchising (or refining existing franchise efforts) will have profound, long-term consequences. Content copyright 1990-2009, Kevin B. Murphy
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Franchise Expert
The #1 factor in evaluating so-called expertise - are the principals really franchise experts? There are objective criteria to determine this:
(1) Have they qualified and been allowed to testify as a franchise expert in court and arbitration proceedings? Being involved as a franchise expert in the franchise litigation process gives a sensitivity and radar for avoiding future franchise problems.
(2) How many books on franchising have been written by the principals?
(3) How many franchise articles have been published in journals or magazines?
(4) What is their franchise teaching experience?
(5) What is their depth of experience in the franchise industry? (see next topic below)
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Franchise Industry Experience
(1) Length of time the firm has operated exclusively in the franchise industry?
(2) Experience on both sides of the franchise fence - working with franchise companies (franchisors) as well as with individual investors (franchisees) who have purchased a franchise?
(3) Past experience principals have owning and operating a franchised business? This factor is absolutely critical. If the principals have owned and operated a successful franchise, they bring a unique perspective and radar for avoiding future franchise relationship problems from disgruntled franchise owners.
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Comprehensive Training & Ongoing Services; Control Systems
(1) Can (and will) the firm train your personnel how to operate and manage the new franchise company? Remember, you're entering an entirely different business, one requiring new skills and abilities. If this topic is not addressed in detail, you might as well earmark the franchise fees received when you sell franchises for a future franchise litigation war chest;
(2) Will the firm help you review and update operational (franchise operations manual) and legal documentation (franchise offering circular) on an ongoing basis?
(3) Has the firm developed, and will they help you put into place, franchise marketing, sales control and legal compliance programs during the critical implementation (start-up) phase of your franchise program?
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