Understanding FDDs' Legal Significance

Time kill deals?

It does, but those deal-killing moments are more about a failed process.

Time-killing delays are a function of poor planning and a failure to align your franchise development strategy with your legal process.

You’ve worked on a deal for weeks, the candidate is a great fit, she is ready to sign, but her attorney has some inappropriate negotiation requests.

Your deal is now in the hands of your legal counsel and her response is now a critical part of what, hopefully, is a successful closing process. It’s not the time to prove how smart she is and it’s not the time to let your guard down and make decisions that will negatively impact your brand 5 years from now.

The reality is that your attorney’s negotiations should be as planned as your entire franchise sales process. There should be set rules as to the changes that you are willing to make and those that you cannot compromise on.

Most importantly, there must be a thoughtful process where your attorney creates an environment of engagement for opposing legal counsel and the franchisee candidate. Many deals are saved by a thoughtful explanation as to why a requested legal change cannot be made. Just saying “no!” is not enough.

Many deals are lost because attorneys act, well, like attorneys.

It’s time to involve your legal counsel in your strategic planning and franchise sales process.

They need to be aligned.