Hummer Speaks About Franchise Law and Mediation
The Washburn Business Law Society hosted Warren Hummer, Class of 1974, on Thursday September 16, 2004. Warren Hummer spoke to students regarding his experience in franchise law. According to Hummer, fifty cents of every dollar spent is spent within a franchise business. Hummer identified two major types of franchises. The first type is a product distribution franchise, such as Coca-Cola. The second is a business format franchise, such as McDonalds.
In discussing changes in the field, Hummer said that many companies and investors are looking into international franchising because real estate in the United States is becoming scarce. He also noted a trend toward co-branding, or combing several franchises together and sharing one location. He also identified a trend toward utilizing non-traditional venues, such as placing businesses on tribal land or in tribal casinos.
Hummer told students looking to enter the field that intellectual property, international law, real estate law, and transactional law are areas of interest for a franchise lawyer. Hummer also noted the increased importance of mediation in franchise law. Some companies have been moving toward mediation because it is less expensive and less time consuming.
Hummer closed his presentation with a discussion of ethics. Franchise business today is highly regulated, following a period before regulation when fraud was rampant. Hummer recounted his experience working as an in-house corporate attorney, when he felt ethically obligated to resign from the company. Hummer encouraged attorneys to protect themselves by working under an employment contract that would take into account the possibility of resignation or termination of employment for ethical reasons.
Melanie Maxwell-Shelkey contributed this article.
