Making Law Work

Justina Knox (centre): ‘Franchisors don’t use non-specialist legal advisors – nor should you!’

Botherway helps create the legal foundations for franchise success

Justina Knox is a fan of franchising. ‘I’m all about relationships, and franchising is a very positive way of setting up businesses. As a lawyer, I love helping people to understand each other’s perspective. Get that right at the start and you create the foundations for success while avoiding the wrangling that can cause issues and costs later on.’

Justina is the franchise specialist with Botherway, a Hamilton-based commercial law firm which services clients all over the country. With nearly 30 years’ experience in franchising, she has represented new and existing franchisors and franchisees, helped franchisees develop multi-unit empires and worked with franchisees exiting systems.

‘In fact, I’ve often acted for people when they have bought their first franchise, worked with them as they’ve grown and then acted for them again when the time has come for them to sell and move on.

‘Being a smaller firm allows for that personal contact which builds longterm relationships and trust. If you are looking for a legal advisor who can combine that approach with specialist franchise expertise, give me a call.’

Working for franchisees

Here’s a memorable bit of advice from Justina for franchise buyers: ‘Franchisors don’t use non-specialist legal advisors – nor should you!’

‘Any lawyer can look at a franchise agreement, but it will take them twice as long as a specialist, they won’t know what the industry standard is, and they will argue for changes that are never going to happen.

‘When I’m helping people buy a franchise, I look at the agreement and the opportunity and my experience enables me to say, ‘This clause is a positive, this is quite normal, but that is a potential issue – let’s talk about it. It may or may not be possible to change, but at least you will understand why it’s in there and whether you can live with it.

‘For example, some franchisees get hung up on rebates paid by suppliers to the franchisor – they think they pay higher prices because of it. But how is that money being used to support or promote the franchise? Another example is the requirement for franchisees to use certain admin or accounting systems. They may be unfamiliar to the franchisee, but by having everyone on the same system the franchisor can provide better analysis or feedback.

‘We’ll help you find out these things at the start so there’s no frustration later on and you can concentrate on building your business.’

Working for franchisors

Understanding how the franchise relationship works makes a big difference, says Justina. ‘When we act for a franchisor, our job is to help them develop a good system. That takes leadership and firm foundations – but at the same time needs a framework that can take on board the skills and feedback of the franchisees. Franchising rewards a collaborative approach, and that’s what we try to create.

‘And when things go wrong, as they inevitably will sometimes, good leaders put their hands up and say, “We got that wrong and here is how we can fix it” and franchisees will respect you for it. It’s a matter of getting the right advisors around you to help the franchise move forwards.

‘Sometimes, new circumstances may force a change of direction that doesn’t suit everyone, or the franchise may have stalled for whatever reason. In that case, you need support to work your way out and release the franchisees in a positive way. We’ve facilitated that, and have been able to have it be a positive experience for all involved.’

Fixed fee quotes

Botherway may be a boutique firm, but the team of lawyers have experience across a wide range of areas: employment law; company, business and supply agreements; property and leasing; and trust law, which enables new franchisees to manage business risk and protect their family and assets.

‘We talk to our clients in depth to understand their business and family so we can do the best job for them,’ Justina says. ‘We like to provide a more personal service than the big city firms, and we’re happy to provide a fixed fee quote so there will be no surprises.

‘So whether you’re a franchisor, a franchisee or a franchise buyer anywhere in New Zealand, get in touch to find out how we can help you.’

Advertiser Info

Botherway

www.botherway.co.nz/franchising

Contact Justina Knox

P 0-7-839 1122 M 021 721 549

justina@blegal.co.nz