Prospective franchise clients often ask when they should retain a lawyer. My answer is almost always the same. A franchisor client should retain a franchise lawyer from the moment they try to franchise their business. Conversely, a franchisee client should retain a franchise lawyer as one of the last steps in the process.
For the franchisor client, a franchise lawyer will provide valuable advice and guidance that will be necessary from the outset of the development of their franchise system. For the franchisee client, s/he/they should only seek advice from a franchise lawyer once they have done their due diligence (i.e., spoken to other franchisees, met with their other professional advisors such as accountants, secured financing, etc.). Lawyers are costly. Why should the franchisee client spend the money on a franchise lawyer if they’re not fully certain that they will proceed with the franchise opportunity?