I have recently heard rumblings that lawyers have had too much to say in shaping the way franchising, a method of distribution, is developing. More specifically, franchisors have been bemoaning that their franchise agreements are too long and cumbersome, and in the interest of caution, lawyers have been too protective in the rights they grant them in their franchise agreements. And for some franchisors, the agreements have become too imbalanced. If you ask a franchisor whether he would sign his own franchise agreement if he were a prospective franchisee, a franchisor might respond, “Only if I didn’t read it.” This trend, although sketchy in its development, is remarkable.
The lawyer, of course, is in a difficult situation here. The first Dairy Queen and Kentucky Fried Chicken franchise agreements were one pagers. Thus, one can readily contend that the grant of a franchise can be legally accomplished, and effective, using very few words.
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