Every franchisor has two conflicting goals. On the one hand, the franchisor wants to expand its franchise system. On the other hand, it wants guidance and agreements that protect it. An experienced franchise law professional can help reconcile the two.
Inexperienced attorneys, and attorneys who are not franchise law professionals, usually draft scorched-earth contracts that are so heavy-handed they seem aimed more at punishing the franchisee than protecting the franchisor. These attorneys have heard that franchise agreements favor franchisors, and they seem determined to make the agreements as one-sided as their imaginations will allow.
As one example of this attitude, we were speaking with an in-house franchise attorney. We asked why he drafted a simple, standard contractual provision in a particularly harsh manner. His answer? “Sometimes we just want to show the franchisees who’s boss.”
That’s a bad attitude. Prospective franchisees will pick up on it. When they do, they will shop other franchise systems (including your competitors). You will find yourself wondering why you have a great concept, great people, and no franchisees. Your growth will stall, for no good reason.
You will build your franchise system much more successfully if you are able to give prospective franchisees documents that protect you, but that are not gratuitously punitive. Good franchise documents are straightforward. They explain what you are doing and why. Ideally, they make the prospective franchisee nod and say, “I understand why they’re doing that. That’s reasonable. If I were in their shoes, I’d do the same thing.”
At The Johnson Franchise Law Firm, we are skilled and experienced franchise law professionals. The advice and counsel we give you, and the franchise documents we draft, reconcile the conflict between “expanding your franchise system” and “protecting you.” We help you grow, and we protect you. Every step of the way.