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Saturday, March 20, 2010

Franchise Attorneys and Franchise Consultants: Critical Evaluation Questions to Ask

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Evaluating franchise attorneys and evaluating franchise consultants can seem a daunting task. But the firm a company selects to assist its entry into franchising, refine existing franchise efforts or make franchise opportunity investment decisions will have profound consequences. While asking for a list of references is one approach (and when is anyone ever dumb enough to provide a bad reference?) there are more objective criteria that are not dependent on selectively disseminated information.

By addressing the nine Franchise Questions, topics and subcategories of information discussed below, you will eliminate virtually 95% of the individuals or firms you are considering. Then efforts can concentrate on evaluating the 5% cream of the crop (especially franchise attorneys) that truly merit consideration:

A. 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 detecting and 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-related teaching experience? (see topics E and F below)

(5) What is their depth of experience in the franchise industry? (see next topic below)

B. EXPERIENCE IN THE FRANCHISE INDUSTRY:

(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 franchise, they bring a unique perspective and radar for avoiding future franchise relationship problems from disgruntled franchise owners.

C. COMPREHENSIVE TRAINING & ONGOING SERVICES; CONTROL SYSTEMS:

(1) Can (and will) the firm train your personnel to operate and manage your 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?

The existence of these programs is essential to ensure only the cream of franchise applicants are allowed to enter the network, and to create a series of documented files should a dispute arise in the future. Most of the legal risk in franchising occurs during the franchise marketing cycle when franchises are sold. If your company's done a good job here with these programs, then you've eliminated most of the risk.

D. LEGAL: FRANCHISE ATTORNEY

(1) Is the law practice devoted exclusively to franchise law?

(2) Total number of franchise disclosure documents (formerly called franchise offering circulars) drafted and reviewed?

(3) Experience filing franchise registrations and working with state examiners in all 14-plus franchise registration states?

(4) Experience represeting franchise companies as well as persons buying a franchise? Knowing both sides of the fence is a tremendous asset.

E. ACADEMIC: UNIVERSITY & COLLEGE

Experience teaching franchise courses at graduate and undergraduate university levels?

F. ACADEMIC: PROFESSIONAL

Experience teaching franchise courses to franchise attorneys and general practice attorneys?

G. BLEND OF BUSINESS & LEGAL SKILLS:

Specialist franchise attorneys and law firms produce tight legal agreements (sometimes overly so leading to future franchise relationship problems) and usually adequate franchise offering circulars. Setting aside the overly tight contract issue, the problem is most franchise attorneys - franchise lawyers are not capable of making sound, strategic business decisions and providing practical, ongoing advice. Some franchise consultants, on the other hand, have good business sense, but lack the requisite legal skills. Questions:

(1) Does the firm have the proper blend of business savvy and in-house franchise legal expertise? It's always a big plus if the franchise attorney also has an MBA. You can do a Google search with these twin attributes (franchise attorney MBA) and narrow the field considerably.

(2) Can the firm produce good legal documentation (franchise disclosure documents) and help you edit (or create) consistent operational documents (such as the franchise operations manual, training program, etc.) If your franchise agreement says "x" but your franchise operations manual or advertising materials say "y" about the same issue, be prepared to pay hefty franchise litigation fees and deal with franchise litigation attorneys in the future.

(3)Can the firm provide competent and practical ongoing advice in critical areas like effective franchise marketing, media decisions, interviewing franchise buyers, adopting the best franchise organizational structure, implementing a franchise advisory council, etc? Mistakes made in these areas can easily cost the franchise company tens, if not hundreds of thousands of dollars.

H. CONTRACT FAIRNESS:

Does the firm give you an option of choosing between:

(a) an hourly rate and

(b) a flat contract amount, where you don't have to worry about accumulated hours and an unknown total amount?

I. RED FLAGS - BEWARE OF ANY OF THE FOLLOWING:

• Combination teams where one entity does one part of the project and another the other part. For example, a consulting firm does planning, and operational documentation, while an attorney "they know very well" writes the legal documentation.

• Or, a variant of the above, the company in the “fine print” of its contract, requires your attorney (who you obviously have to pay) to review and approve everything they do because the company (it says) is not rendering legal advice.

Actually, by providing documents that affect legal rights, they are rendering legal advice, but in an illegal manner. It’s called the unauthorized practice of law. You end up paying two attorneys - yours and theirs. Besides the expense, it sets you up for future franchise problems.

Their attorney represents who? The franchise packaging group, of course, and definitely not you. He or she is typically a recent law school graduate who hasn't figured out what they're doing is illegal and could cause them to lose their license to practice law.

Besides that, they represent the franchise consulting group, whose interest is to churn as many franchise packages per year as possible. You end up with a bad franchise disclosure document and sloppy franchise operations manuals.

To save time, the franchise agreement gets watered down so it's easier to push through some franchise registration states. Some of the "t's" may be crossed and some of the "i's" dotted, but not most of them. The end product are documents that set you up for future franchise litigation difficulties.

• Firms that advise you to franchise your business, and they've never seen your business! You'd be surprised how often this happens.

• Firms that say they'll write your franchise operations manual for you. How someone, who knows absolutely nothing about your business, could ever come close to anything but a mediocre product at best, is a frightening thought.

The use of boilerplate manuals produced by consulting groups is yet another future litigation time bomb. You are the true expert in your business. With competent guidance and editing, you'll be able to produce a professional and workable operations manuals, if you don't have these already.

• Pricing quotes that seem exceedingly high or low (especially "do-it-yourself" franchise kits).

• If you are buying a franchise, BEWARE of any attorney recommended by the franchise company. Even worse, beware of franchise companies who say you don't need to use an attorney. There are a couple of these online.

• Firms (or individuals) that have EVER been sued for fraud, misrepresentation, the unauthorized practice of law or violating any franchise law. DON'T FORGET TO ASK THIS CRITICAL QUESTION!!

For more informaton, consult the Franchise Foundations website.

(ArticlesBase SC #497566)

Kevin B. Murphy, Franchise Attorney, MBA - Mr. Franchise - About the Author:

Labels: evaluation, franchise attorneys, franchise consultant

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Average Salary of a Franchise Consultant

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The franchise consultant's earnings are comprised of commissions paid by franchisers as the consultants send qualified franchisees to them. The average payment per match is usually around $10,000 to $15,000. However, it is possible to earn up to $50,000 if an entire territory is placed with a franchisee.

Full or part-time

A franchise consultant has the flexibility to decide whether to operate his or her consulting business full or part-time. The time available as well as the desired financial results will dictate how much effort is put into reviewing potential leads. This in turn translates into the possible income to be made.

As franchise consulting is the consultant's own business, consultants have the option to run the business on a part-time basis while still maintaining another job. There is great potential to earn a nice second income from this business. Also, many professionals such as Financial Planners, include franchise consulting in their portfolio of services for existing clients.

Salary possibilities

As a franchise consultant, it is very possible your business will take in a six figure annual gross income, even if only one deal per month is closed. This can be achieved remarkably while still in the first year of business.

One franchise consultant reported in a recent testimonial that by working an average of 20 hours per week over a period of 9 months he earned $136,595 in commissions.

Another franchise consultant stated that he sold 4 franchise units within 45 days after participating in the training provided by the franchising organization.

It is clearly achievable to bring in quite a comfortable income through franchise consulting. How much is earned is not only the result of how much time and effort is put into the business, but also by the wise management of time and resources. It is important to note that taking advantage of the training and support provided by the franchise consulting organization can be very beneficial in running a successful business.

Peter Casey is a well known franchise professional who consults with franchise systems and franchise seekers. As an author, public speaker & franchise consultant Peter has educated thousands of people about their options in the franchise industry. Peter is also the Managing Director of the Franchise Alliance. If you have questions or want to become a franchise consultant visit FranchiseAllianceSupport.com.

Article Source: http://EzineArticles.com/?expert=Peter_Casey

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Tips For a Successful Franchise Business

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Have you ever wanted to own your own business, but have reservations about taking such a significant financial risk? Finding the right franchise business will reduce that risk and help you reach your goals.

Owning a franchise business means you have the right to use a company name and sell the company's products, while the parent company (or the Franchisor) sets the standards and makes marketing, advertising and internal decisions.

The franchisor already has a proven track record of success, and therefore already has plans in place to help you, the franchisee, get your franchise off the ground. The franchisor can offer their established and respected name, proven products or services, and training to help you and your employees succeed.

The franchisor has knowledge of what mistakes are routinely made by someone who is starting their first business, and has taken action to eliminate those mistakes to ensure anyone who is opening up one of their franchises will have the guidance and support of the franchising corporation.

The first thing you should do when considering a franchise opportunity is think of a franchise that sells a product that interests you. Having passion and knowledge about a product or service you are selling will give you a great foundation for your business.

Your knowledge and skill can be taught to employees and come through in your interaction with customers. A franchise consultant can help you focus your goals and assist you in finding the right franchise business for you.

Franchise consultants can calculate which franchisor has the best business model for you based on your unique personal profile. Your goals, skills and interests will be matched with a franchise model that best exemplifies your expectations.

Research the franchises you are considering. Find out their financial strengths and weaknesses, as well as their locations in the region. Visit a franchise and, if possible, talk to the owner. Ask him or her their opinion of the franchise, the franchisor and what he or she likes best about the company.

Consider your financial investment. What is the initial startup cost of the franchise and how to you plan to finance the investment? Will you have to take out a loan or do you have the capital on hand? Opening a franchise business is a significant financial investment, so make sure you have enough money left over to support your family and pay employees during the times when business is slow.

Before you sign any contracts or enter into any agreements with the franchisor, meet with a franchise attorney. The franchise attorney specializes in legal business matters that pertain specifically to franchise businesses.

The franchise attorney can advise you on certain aspects of the contract and explain to you parts of the contract that are unclear. The franchise attorney can also negotiate with the franchisor's attorney to make sure your best interests are being met.

The most important thing to remember as you search for your new franchise business is to do your research. Enlist the help of a franchise consultant who will ensure your goals are being met. Owning a franchise is one of the most important decisions you'll ever make, and finding the right one for you will give you a greater chance of success.

Mr. Abernathy is a marketing agent of Frannet. The franchise consultants offer assistance to new owners experiencing the franchise owning process for the first time. From fees, licensing, taxes, and more - your franchise consultant is there to help you reach your goals and dreams of being a business owner. For more information on their Franchising please visit their website.

Article Source: http://EzineArticles.com/?expert=Bill_Abernathy

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Hot Franchise Business, Franchise Consultant - All State Franchise Finders LLC

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Detroit MI franchise consultant for Huntington Learning Center franchise

Detroit MI franchise consultant All State Franchise Finders LLC has top franchise for sale. The child education and development franchise Huntington Learning Center franchise is doing well according to franchise business consultants.

Your child deserves the best education possible. The world of tutoring is full of quick-fix solutions designed to get students through one test or assignment; but Huntington Learning Center has a different philosophy. We believe in empowering children with a lasting education so they can succeed today and in the future.

Rather than fill your child with facts he or she will forget, we help your child master a skill before moving on to more difficult tasks and more advanced learning. This ensures your child is truly understanding the content, and developing the skills to learn and solve problems independently.

Imagine going from a class of 20 to a class of 1. We realize no two students are the same, and we stand by the philosophy that a child learns faster and more effectively when he or she has a teacher and lesson plan devoted to the child’s individual needs. Students are deprived of this personal attention in most classrooms and tutoring groups, which is why Huntington Learning Center is unique.

Huntington Learning Center franchise comes highly recommended by Detroit MI franchise consultant All State Franchise Finders LLC. Child education and development franchise expert All State Franchise Finders LLC is offering top franchise for sale. Let them be your franchise business consultants.

All State Franchise Finders LLC, a Boston ME franchise consultant

Boston ME franchise consultant and franchise business consultants All State Franchise Finders LLC have experience with BrightStar Healthcare franchise.

Home Care Services for Adults with Disabilities

BrightStar recognizes that you may be among the growing number of adults who are taking care of their mentally, physically or developmentally disabled adult children. Together, we can put into practice your existing care plan or develop a care plan that addresses the needs of the client and the needs of your family.

Your children’s needs will be met and you now have a partner in providing care for your loved one. Ours will be an enduring relationship where we will be there every step of the way. Everyone, regardless of their disability, has the inalienable right to live their lives to the fullest extent. Together, we will make that happen.

BrightStar’s home care services are available to your family from a couple of hours up to around the clock. Let us know if you need anything from respite, companion, or homemaker services performed by certified nursing assistants, home health aides or even nurses.

High Tech Cases/Skilled Care

BrightStar is ready in the aftermath of a life-altering event. We are proud to offer the experience, qualifications, and caring personnel to be there even when others are not. Nursing facilities are not the answer, your home is. BrightStar is ready to answer the call by offering the necessary skilled certified nurse aides and nurses.

Our care providers can offer every service available in an assisted living facility or skilled nursing facility in the comfort of your home. Our high-tech clients and their families can rest assured knowing that BrightStar is ready to help them live their best.

(ArticlesBase SC #1056608)

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Labels: franchise business consultant, franchise consultant, hot franchise business

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