146 Franchisors Cross-Examine their Legal Services

At last fall's Franchise Leadership & Development Conference in Atlanta, nearly 150 franchisees responded to a survey conducted by MulcahyLLP about their interface with outside counsel and legal issues. Here are some highlights of what those franchisors had to say. How does your law firm stack up?

Do you believe you are receiving more or less value for legal services over the past 5 years?

More than two in five (41.8%) responded that they're getting "much more" or "somewhat more" value from their law firms, while about one in three (31%) saw no change. Only 3 in 100 believe they're getting "somewhat less" value.

Approximately what percentage of your annual expenses on legal services are spent in these categories?

Compliance accounts for about one in every three dollars of franchisors' annual spending for legal services, with preventive counseling and transactional spending accounting for another 45%. Only about one dollar in 10 goes toward expenses related to litigation.

How long have you been using your primary law firm for disclosure and registration issues and annual renewals?

When it comes to relationships with outside law firms that handle disclosure, registration issues, and annual renewals, about six of 10 (61%) have been with their outside law firm for more than three years.

What is the dispute resolution section of your current franchise agreement geared to?

Nearly two thirds (63%) of the responding franchisors require their franchisees to agree to arbitrate or mediate their disputes. And while one in 10 prefer to reach a quick settlement, none wanted to get to court quickly.


Jim Mulcahy is the founding and managing partner of Mulcahy LLP, a firm dedicated to franchise and distribution law. He has more than 30 years of experience, is a seasoned trial lawyer, and is former general counsel of American Suzuki. Contact him at www.mulcahyllp.com or 949-252-9377.

Published: August 1st, 2012

Share this Page

Reader Reactions:

comments powered by Disqus
Golden Corral
ADVERTISE
SPONSORED CONTENT

Franchisor Topics »

Premium Services

Vya Business Opportunity

Vya
Engaging franchisees in local marketing takes more than just technology....

LMap Business Opportunity

LMap
Silvercrest Advertising's innovative Localized Media Automation Platform...

Konnect Business Opportunity

Konnect
Konnect is an agency with unmatched business acumen that provides public...

Scorpion Business Opportunity

Scorpion
Scorpion offers ROI-positive online marketing solutions that can get your...

Franchise Consumer Marketing Conference Business Opportunity

Franchise Consumer Marketing Conference
June 20-21, 2017. Intercontinental Hotel, Atlanta (Buckhead), GA. An...

Michael H. Seid & Associates Business Opportunity

Michael H. Seid & Associates
MSA provides domestic and international franchise advisory services to...

Direct Capital Franchise Group Business Opportunity

Direct Capital Franchise Group
Direct Capital, an established national direct franchise lender has...

Silvercrest Advertising Business Opportunity

Silvercrest Advertising
Silvercrest Advertising has created a one-stop shop solution for all of...


Franchise Update Magazine

A targeted, quarterly magazine that takes CEO's, VPs and Sales Executives to the cutting edge of franchise development.

Subscribe to Franchise Update Sales Report

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)