Understanding the root cause of noncompliance can surface underlying issues the franchise system may need to consider in formulating a change strategy.

Of all the mistakes new business owners make, the most fatal is failing to anticipate the cost of getting and staying in business.

A qualified franchise attorney can separate contract terms and obligations that are “acceptable” or a “common practice” in a franchise relationship from those that may be excessive or unusual, and can help you negotiate with a franchisor.

Companies new to franchising have difficulty understanding the essential differences between services provided by experienced franchise legal counsel and those provided by qualified franchise consultants in developing the structure and strategy of a franchise system.

In order for franchisors to legally franchise their businesses in the United States, franchisors must be aware of, and comply with, all of the foregoing laws described in this article.

There is a second type of encroachment in franchising, dealing with a different “turf” battle. What, if any, boundaries are there for the services lawyers and consultants provide to their clients?

Most franchise systems have procedures in place for requesting approval of new products or services. Often the new items, after thorough research by the franchisor’s staff, are tested in company-owned locations or in franchisee-owned locations.

When MSA works with a client as part of a litigation strategy team, our role is generally to facilitate business discussions focused on preserving the value of the franchise system, and keep the franchisor-franchisee business relationship on a separate track.