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Legal Eagles offer lease, FDD advice



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We asked Legal Eagles what issues they think more people in franchising should know about. Read what they had to say.

Lease Language

Key points to negotiate in a retail lease. Retail leases are extremely important documents for any retail franchisee. A good retail franchisor should have a strong real estate team consisting of a national real estate firm to help locate good local realtors and ensure that the franchisor’s requirements for the space are met, and an experienced retail lease law firm that can work with the franchisees in negotiating a strong lease. For example, one topic that is often overlooked is the requirement for assigning the lease. Many franchisors have their own assignment requirements, but what about making sure that the personal guarantee is released upon assignment? Many franchisors are not going to be concerned about that, but every franchisee should be. I am sure that a franchisee would not want to be guaranteeing the financial obligations of the buyer of their business. Leases are extraordinarily negotiable documents and having a strong lease attorney to negotiate the legal matters in the lease can often make or break a franchisee’s business.”

—Nancy Lanard, Lanard and Associates


Barry Heller

Barry Heller

Social Media

The power of Facebook on franchise lead generations. Through my clients, I continued to be amazed how brands are innovating to use social media to identify qualified franchise prospects.”

—Ritchie Taylor, Manning, Fulton & Skinner


Human Resources

The franchising world has now been impacted by the application of employment issues. More folks in franchising need to be aware of the risk of ignoring the types of practices that expose the franchisor to employment-type claims and remedies.”

—Barry Heller, DLA Piper


We also asked our 2020 Legal Eagles, what are your best lessons of late? Several obliged.

Lloyd Hoffer

Lloyd Hoffer

FDDs

Picking up the phone and having a 10-minute call with an examiner can prevent wasted time and save money for the client. Recently, in response to an examiner comment on Item 19, we were preparing to edit a table and make amendment filings in several registration states. A brief call to the examiner and some negotiation resulted in the comment being withdrawn.”

— Dan Matthews, Drumm Law


Tech & Litigation

Mastery of and use of technology in the course of litigation is becoming a necessity, in the area of mass document and electronic document files. This applies in the franchising scenario as much as elsewhere.

I learned it by having to deal with a difficult mass document file and through monitoring technological developments in our profession and seeing what techniques others are applying.”

— Lloyd Hoffer, Hoffer Adler


Fredric Cohen

Fredric Cohen

General Wisdom

An old lesson that revisits frequently (and recently): A law license is not a license to be an ass. And the corollary: Humility and understatement are among the most lethal of legal weapons.”

— Fredric Cohen, Cheng Cohen

The faster you can figure out what the other side really wants, the more quickly you can get to a solution.”

— Deborah Coldwell, Haynes and Boone

Managing disclosure. Not a new issue, but still a major problem we see in cases that become disputes. Franchisors need to get high quality advice and pay attention to it sooner rather than later in their operations.”

—Lloyd Hoffer, Hoffer Adler


CONTENTS: Legal EaglesComing SoonHot TopicsAgreement Advice
Fledgling EaglesExit TimeSeasoned ExpertM&A Trends

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