Joel Libava
(This stressed out aspiring franchisee clearly needs to hire a franchise lawyer!)
You’ve found a franchise you’re pumped about. The brand looks solid. The numbers seem right. The franchisor’s sales rep is friendly and responsive. Everything feels good.
So you sign the franchise agreement and write the check.
Big mistake. Why?
Because, before you put pen to paper on any franchise deal, there’s one question you need to answer honestly: Do I have a qualified franchise lawyer reviewing this agreement?
If the answer is no, stop everything.
Key Takeaways on “Do You Need a Franchise Lawyer?”
- Franchise agreements are long, complex legal documents written entirely to protect the franchisor — not you
- A franchise lawyer is a specialist. A general business attorney is not a substitute-ever.
- The cost of hiring a franchise lawyer is minimal compared to your total investment
- Legal review can reveal dealbreakers you’d never catch on your own
- You only get one chance to negotiate before you sign
Do You Need a Franchise Lawyer? Yes, Because The Franchise Agreement is Not Your Friend
Let’s be direct. The franchise agreement — often 50+ pages — is drafted by the franchisor’s legal team. Every clause, every term, every obligation is structured to protect the franchisor’s interests.
That’s not a criticism. It’s just the reality of the franchise model.
That’s why you need someone in your corner who knows how to read these documents. Someone who understands what’s negotiable, what’s a red flag, and what could cost you everything down the road.
That person is a franchise attorney.
Good news!
There’s a Franchise Attorney Directory on this here website. Use it.
Again: General Business Lawyers Won’t Cut It
Here’s where many aspiring franchise owners make a critical error. They hand the agreement to their family friend who practices real estate law or their cousin who handles wills and estates.
Don’t do it.
Franchise law is a specialty. A general business attorney may be excellent at what they do, but franchise agreements have specific legal language, regulatory requirements, and industry nuances that only a trained franchise lawyer will recognize instantly. Nuances that can change yearly.
You wouldn’t ask a podiatrist to perform heart surgery (hopefully!). Same principle applies here.
What a Franchise Lawyer Actually Does
A qualified franchise attorney will review your Franchise Disclosure Document (FDD) and franchise agreement with a trained eye. They’ll flag problematic clauses around territory rights, renewal terms, transfer fees, and termination conditions. They’ll explain what your ongoing obligations really look like. And they’ll tell you — clearly — what you’re getting into.
Some lawyers will also help you negotiate. Not every franchisor will budge, but some will. But, you won’t know unless you ask. And you won’t know what to ask unless you have proper legal counsel. Okay?
What it Costs — And What It’s Worth
Your milegage will vary.
In this case, it depends on what you need.
Additionally, some lawyers bill hourly and some franchise attorneys work on a flat fee.
Think about it this way. If a franchise lawyer spots one problematic clause that saves you from a legal dispute or a forced exit down the road on a $350k franchise investment, they’ve easily paid for themselves.
People! This is not the place to cut corners.
When Should You Hire a Franchise Lawyer?
Timing matters. Don’t wait until the franchisor is pressuring you to sign. Bring a franchise attorney into the process before you reach the franchise agreement stage. Ideally, have them review the FDD first. That gives you a fuller picture of what you’re dealing with.
Here what I tell all my clients.
Choose a franchise lawyer when you’re getting close. Then, have a quick introductory call with her before you travel to franchise headquarters for Franchise Discovery Day.
Then, if you like what you see and hear, and you want to move forward, engage the services of the franchise lawyer you chose.
The Bottom Line
Buying a franchise is one of the biggest financial decisions you’ll ever make. You’ve done your research. You’ve asked the right questions. You’ve visited existing franchisees.
Now protect yourself legally.
So, when you ask yourself “Do I need a franchise lawyer?,” remember that a franchising lawyer isn’t a luxury. It’s a necessity.
Skipping this step is the kind of shortcut that can define — and derail — your entire franchise experience.
Get the lawyer. Have him review the agreement. Then sign with confidence.
Frequently Asked Questions
You can read the agreement yourself — and you should. But reading it and truly understanding it are two different things. Franchise agreements are dense, legally complex documents written by the franchisor’s attorneys. A qualified franchise lawyer knows exactly what to look for, what clauses are dangerous, and what’s actually negotiable. Self-reviewing a franchise agreement is like diagnosing your own medical condition. Possible? Sure. Wise? Absolutely not.
Not recommended. Franchise law is a specialized field. A general business attorney may be highly skilled, but without specific experience in franchise agreements and FDD review, they’re likely to miss nuances that a franchise specialist would catch immediately. Always work with an attorney who has documented experience in franchise law — not someone learning on the job at your expense.
Most franchise attorney engagements for FDD and agreement review run between $1,500 and $5,000 depending on the complexity of the deal and the attorney’s level of experience. For a total franchise investment that could easily reach six figures or more, that fee is a small and entirely justified cost. Think of it as the cheapest insurance policy you’ll ever buy.
Earlier than you think you need to. Ideally, bring a franchise attorney in when you receive the Franchise Disclosure Document (FDD) — before you ever get to the franchise agreement stage. The FDD contains critical information about litigation history, franchisee turnover, fees, and obligations. Having a lawyer review it early gives you better leverage and more time to ask the right questions.
Sometimes, yes. Many franchisors present their agreements as “standard” and non-negotiable — but that’s not always true. Territory protections, transfer fees, renewal terms, and certain operational clauses have been successfully negotiated by buyers represented by experienced franchise attorneys. You’ll never know what’s possible until you ask. And you won’t know what to ask without proper legal counsel.
A franchise attorney will thoroughly review both your Franchise Disclosure Document (FDD) and the franchise agreement. Key areas of focus include territory rights and exclusivity, renewal and termination clauses, transfer restrictions and fees, your ongoing royalty and marketing fund obligations, dispute resolution terms, and any post-termination restrictions. In short — everything that will define your life as a franchisee for years to come.
Start with The Franchise Attorney Directory — a curated resource built specifically to connect franchise buyers with experienced, vetted franchise attorneys. You can also check the American Bar Association’s Forum on Franchising for referrals. Whatever you do, verify that any attorney you hire has specific, current experience in franchise law before you engage them.
About the Author
The Franchise King®, Joel Libava, is a leading franchise expert, author of "Become a Franchise Owner!" and "The Definitive Guide to Franchise Research." Featured in outlets like The New York Times, CNBC, and Franchise Direct, Joel’s no-nonsense approach as a trusted Franchise Ownership Advisor helps aspiring franchisees make smart, informed decisions in their journey to franchise ownership. He owns and operates this franchise blog.
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