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Franchising/Expert Advice on Difference in Franchise Location


QUESTION: Hello Kevin,
  I had an issue with a real estate broker breaking his duties. A space was offered to me by an agent that was a good spot but much less rent and the broker decided to not tell me about the space because the current space we were negotiating on offers a larger payout. I was advised to pursue a lawsuit against the broker and his company and I am finding it hard to find an expert who comes at the property evaluation from a franchise location standpoint instead of strictly a valuation of the two different buildings. Am I correct in thinking that just because one piece of land has a better building on it doesn't mean it is automatically a better location for a franchise especially when the "lesser" of the spaces has better ingress/egress, free standing building (Vs. strip center), more dedicated parking, on the corner of a 4 way stop (instead of 3 way), and has a dedicated 40' in the air pylon sign?? I am at a point where I could settle the case but don't believe I am getting what I am owed based off a property valuation. Any help would be appreciated. Thanks!

ANSWER: As a Franchise Attorney I must start by saying although there may be a real estate expert with franchise location expertise out there, but finding such a person will take some investigation. You may not even need someone with franchise location expertise, just a real estate expert, and there are a lot of them out there. Just as important - what was the role of the franchisor in all of this? Did it approve the location or was involved in the process? It may very well have some culpability in the real estate area, as well as others. If I were in your shoes, that is something I would investigate with a franchise expert. Best of luck.

Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Attorney & Franchise Expert
Director of Operations - Mr. Franchise

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  The franchisor is known for allowing pretty much any location and not being a great help in location selection. I have already had a real estate expert look at the two properties but all they came up with is the fact that one property was, in its current condition, more valuable than the other, which only speaks to the current condition of the buildings and land and not the potential of the location for a franchise restaurant. Are you available for discussion as an expert? Or can you recommend any other expert I can contact? My attorney is great but not a franchise expert so I want to make sure I am making the right move. Thanks

I regularly consult as a Franchise Expert and have qualified in numerous proceedings as one. The fact that your franchisor allows pretty much any location may open them up to potential liability, as would any other misrepresentations in the FDD. I would say you are not consulting with the proper real estate expert as you need someone who goes well beyond the condition of the property and can do an analysis of the potential of the location for a QSR (quick service restaurant). My contact info is on the website.

Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Attorney & Franchise Expert
Director of Operations - Mr. Franchise


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Franchise Attorney Franchise Expert MBA - Kevin B. Murphy - Mr. Franchise & Former Franchise Owner


Franchise Attorney, MBA Franchise Expert, author and instructor with 2-plus decades of franchise industry experience, including ownership of a successful franchise. I answer all business format franchise questions, how to franchise a business, issues about ongoing franchise relationships, buying a franchise, evaluating franchise investments, franchising vs. licensing (franchise vs. license), franchise disputes, franchise operations manuals, franchise expert advice in franchise lawsuits and franchise litigation, franchise agreements, FDD Franchise Disclosure Documents and intellectual property. I don't answer questions about franchises in the automotive and petroleum industries. I have drafted, reviewed and negotiated over 500 franchise disclosure documents, advised hundreds of franchise buyers and franchise companies as well as started and operated a franchise from scratch - a background not duplicated by any other franchise expert. My in-the-trenches franchise ownership and resale experiences gave me valuable insights to share with potential franchise buyers and existing as well as emerging franchise companies.


Known in the industry as Mr. Franchise, I owned, operated and sold a very successful franchise in the home improvement industry. I help individuals and companies enter and prosper in the franchise industry, have drafted, reviewed and negotiated over 500 FDD's (Franchise Disclosure Documents) and have experience filing franchise registrations in all franchise registration states such as California, Illinois, New York, etc. I am very familiar with the McDonalds franchise program, have developed a cost-savings franchise budget for companies that want to learn how to franchise a business, and pioneered a unique FDD Evaluator program for those considering a franchise investment.

Author of over 40 franchise articles, including four books on franchising and one book on trade secrets.

Avoiding Legal Pitfalls In Franchise Marketing
2009, Franchise Foundations Press

Franchise Sales Control
2009, Franchise Foundations Press

Effective Franchise Marketing
2009, Franchise Foundations Press

Implementing A Franchise Disclosure Compliance Program
2009, Franchise Foundations Press

Protecting Trade Secrets
2002, Franchise Foundations Press

Also authored foreword and edited various chapters of the following book:

The Franchise Handbook: A Complete Guide to All Aspects of Buying, Selling or Investing in a Franchise
2006, Atlantic Publishing Company


B.S. Business Administration (Finance), University of San Francisco,

Juris Doctorate (J.D.) of Law, University of San Francisco School of Law,

Active member of the State Bar of California

Master of Business Administration (M.B.A.) - International Business, San Francisco State University,

Approved Provider of MCLE by the State Bar of California, 1993 to present
Teaching franchise, licensing and intellectual property courses to attorneys in topics like franchise feasibility, international franchising, franchise marketing, franchise planning, franchise kits and others.

Awards and Honors
Selected as the premier U.S. franchise expert by the World Intellectual Property Organization (WIPO), an agency of the United Nations, in Geneva, Switzerland to speak at Singapore’s World Conference about franchising in Asian countries and developing uniform franchise regulations based on the U.S. franchise laws and regulatory model, September, 2007, hosted jointly by WIPO and the Intellectual Property Office of Singapore (IPOS).

Snapshot of Recent Franchise Expert Litigation Cases:

Nagrampa v. MailCoups Inc. and The American Arbitration Association - United States Court of Appeals for the Ninth Circuit (Argued and Submitted En Banc). Summary: provided franchise expert strategy and consulting in a case that established new franchise law by invalidating the standard arbitration provision in a California franchise agreement on the grounds it was unconscionable.

Swansons Cleaners, et al. (Superior Court jury trial). Summary: provided franchise expert consulting that re-focused the legal issues and discovered new causes of action. Testified at deposition and trial for a franchisee in its claims against the franchise company. Result: jury verdict in favor of the franchisee for $1.6 million in punitive damages and $634,000 in contract, etc. damages.

For more information, visit the Franchise Foundations website

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