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franchise attorney or local business attorney

On Behalf of | Sep 8, 2017 | Firm News

Understanding of franchise law

I often get asked by a prospective franchisee client why they should use experienced franchise attorneys like those at Lanard and Associates and not their local business attorney.  My answer is very simple.  The local business attorney will not likely be familiar with franchise laws (both federal and state) and provide poor advice to the client. A business attorney reviewing the typical franchise agreement is going to want to take a heavy hand in negotiating many aspects of the franchise agreement.  However, this would be a mistake. Franchise agreements are very one-sided documents that are not very negotiable.  A franchise attorney understands the types of questions to ask and clarifications and revisions to seek without ruining the transaction. A business attorney who expects to negotiate the franchise agreement in the same way he or she negotiates a normal business contract will turn off the average franchisor and the franchisor will refuse to deal with him or her. This would be a disservice to the prospective franchisee.

Franchise attorney or local business attorney for your commercial lease review?

A commercial lease that involves a prospective tenant that is a franchisee means that there are at least four separate interested parties.  Of course, two of the parties are the landlord and the tenant.  However, if the landlord has a loan on the shopping center or building, then the lender’s requirements will have to be met by the landlord and the landlord must take that into consideration when negotiating the lease.  Likewise, if the tenant is a franchisee, then the franchisor’s requirements must be considered.  As experienced franchise attorneys, the attorneys at Lanard and Associates understand the franchisor’s requirements, and quite often have reviewed the franchise documents for the franchisee/tenant.  This helps the negotiations with the landlord and helps to facilitate the tenant/franchisee obtaining approval of the lease by the franchisor.  Knowledge of both franchise law and years of experience negotiating commercial leases is a huge benefit to any franchisee/tenant.  Ultimately, a franchise attorney who is licensed in Pennsylvania can provide huge benefits to a franchisee/tenant over the local business attorney.

Further resources

You may find some of the other blog posts we have written on commercial leases to be of interest to you.  Particularly, What Are The Most Important Commercial Lease Clauses to Negotiate (https://lanardandassociates.com/what-are-the-most-important-commercial-lease-clauses-to-negotiate/), What is Additional Rent In a Commercial Lease? (https://lanardandassociates.com/what-is-additional-rent-in-a-commercial-lease/), The Top Ten Terms To Negotiate In A Retail Lease (https://lanardandassociates.com/top-ten-terms-to-negotiate-in-a-retail-lease/) and Tips Before You Sign A Retail Lease (https://lanardandassociates.com/tips-before-your-sign-a-retail-lease/).