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Counterpoint: A Consultant's-Eye View

BY Michael H. Seid
September 16, 2003

Tension often exists between lawyer and consultant because many issues do not neatly fall into purely legal or purely business buckets. Consultants chafe at lawyers who make recommendations concerning business strategies that they feel are inappropriate or based upon limited knowledge or research. Lawyers chafe at consultants 'practicing law without a license.' Indeed, from the viewpoint of the professional consultants, the practice of business without due care by lawyers is as risky (maybe more so) for the client as is the practice of law by the non-lawyer.

Many consultants do not themselves employ lawyers to prepare documents for their clients because they believe that it is essential for the lawyer/client relationship to be direct and unencumbered. However, to a certain extent they must deal with legal issues in working with their clients just as lawyers must deal with certain business strategies.

For example, in-term and post-term covenants are legal considerations, but ultimately it will be the business necessity of those provisions that will determine their enforceability. The term and structure of the relationship, the obligation of the parties, and the initial and ongoing fees all have legal consequence, but it will be the return on investment for the franchisor and franchisees that will ultimately determine whether the economic structure of the franchise system is sound. Operations manuals content and training are mostly business issues, but issues concerning compliance with employment laws and vicarious liability issues raise their ugly head at times.

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