Our Principal Attorney
Mark J. Klein has been devoting his professional services primarily to franchise community clients since 1967, and almost exclusively since 1986. Our firm was created in 1996 when Mr. Klein incorporated his practice. You'll find more information regarding Mr. Klein's qualifications in the Attorney Biography section of this website.
Supporting the Franchise Concept
At Mark J. Klein, P.C., we believe the concept of franchising is a valuable element of our society. Our clients have included franchisors, franchisees and national associations of franchisees. In serving both sides of the franchise fence, we have found franchisors and franchisees have many common interests. These include increasing the value of a franchisors' marks and the passage of laws benefiting, in general, small business.
We recognize, however, they also have some conflicting interests. Franchisors often have an incentive to increase the total dollar volume generated by their systems and by individual units to earn them greater percentage royalties and other fees from, and profits from the sales of goods and services to, their franchisees. Individual franchisees, however, are interested primarily in the net profits enjoyed by their own franchised businesses.
A franchisor may seek to increase its revenues by recommending franchisees lower prices to their customers and extend their hours of operation. The effect of cooperating with the franchisor's recommendations, however, may reduce individual franchisee net profits. Our support of the franchise concept includes full appreciation of these common and conflicting interests.
Basic Philosophy: Franchisor/Franchisee Relations
We believe franchisors should encourage their franchisees to substantially participate in making decisions affecting their franchise systems. Franchisors must diligently, fairly and sincerely seek and consider input from their franchisees prior to making those decisions. There may be certain areas selected on a system by system basis where a franchisor may be wise to share decision-making power with its franchisees. In all others, however, the franchisor must have the ultimate decision-making authority and responsibility. The decision-making process must not be overly burdened with franchisor and franchisee bureaucracies.
A franchise agreement which contains reasonable provisions increasing effective franchisee input into a franchisor's decision-making process will help sell franchises and satisfy franchisees. (Happy franchisees are the best franchise marketing tool of all!) We've drafted and recommended to franchisors, particularly emerging franchisors, this collaborative type of franchise agreement.
In counseling franchisee clients, we also advise their franchisor must consider the effect its decisions have on its entire system and all of its franchisees, not just our individual client, whenever it exercises its discretion.
Regardless of our own personal beliefs, you, our client, make all ultimate decisions.
Maintaining Independence: Franchisee/Franchisor Associations
Three franchise industry associations are available for valuable information about franchising:
• American Association of Franchisees & Dealers (AAFD) - www.aafd.org
• American Franchisee Association (AFA) - www.franchisee.org
• International Franchise Association (IFA) - www.franchise.org
Each of these associations has its own philosophies regarding franchisor/franchisee relations. Our firm has not been associated with any of these organizations since 1986. We refer you to each of them for additional information about themselves and the franchise industry.
