3 Questions With Brian Schnell

Brian Schnell, Partner at Faegre & Benson, LLP

Brian Schnell focuses his practice in franchising and product distribution law. He is a leader of the Faegre & Benson Franchise Team, a premier international franchise practice representing more than 200 franchisors with headquarters based in 35 states and seven countries.

Based at Faegre's HQ in Minneapolis, MN, Brian counsels both emerging and mature franchisors in a variety of industries with regard to all aspects of their franchise programs. He is the lead corporate franchise lawyer for more than 80 franchisors, ranging from companies with thousands of locations worldwide to companies who are in the initial stages of building their franchise systems. These clients operate in dozens of industries including restaurants and related food businesses, hotel, health and fitness, media, automotive aftermarket, pets, convenience stores, children's, and many commercial and residential service and retail segments.

Brian is a past chair of the International Franchise Association (IFA) Supplier Forum and a member of its Legal/Legislative, Awards and Membership committees. He also serves on the board of trustees for the IFA Educational Foundation and the Franchise Advisory Board for WomenVenture. He is a frequent and well-regarded speaker and author on franchising. The first male to receive the IFA Women's Franchise Committee Crystal Compass, Brian was distinguished for this honor in 2009 based on his leadership in franchising. He also is one of only eighteen franchise lawyers recognized worldwide by Chambers Global.

What can guests expect at this year’s Faegre Franchise Summit?
As delivered at past Summits, our Summit guests can expect lively and robust discussion on financial, social media and leadership topics. Our Summit speakers are all industry leaders who will facilitate a passionate discussion on best practices that will make an absolute difference to franchisors and franchise systems.

What are the hot legal topics in franchising this year and what do you foresee coming in 2010?
Candidly, there is not much new on traditional legal topics other than perhaps how franchisors should legally address social media and its utilization in their franchise systems. The hot topics exist on the legislative front with what is happening on Capitol Hill regarding financing availability for small businesses, health care, employee free choice act and other critical small business issues. If there ever was a time for franchisors and franchisees to attend IFA's Public Affairs Conference and reach out to their legislators, September 2009 is that time. In addition, a number of states are increasing their efforts on the tax front in order to help state budget shortfalls. 2010 will be an interesting year on the legal front, as much of what happens next year will depend on how franchisors and franchisees resolve their differences in these economic times. Franchisees and franchisors will struggle and some will fail. If the parties resort to courts and arbitration to resolve problems in confrontational and expensive proceedings, we will see new law (not necessarily good law) that will impact the future of franchising.

When do you foresee an improvement in our economic climate?
We are beginning to see early recovery signs now, but it likely will be the first quarter 2010 before the recovery really catches stride. In that regard, it is critical for franchisors to continue to act now in order to assist franchisees to get through this tough period and understand changes in consumer buying patterns and then be poised to take advantage of market share opportunities.

BONUS: What is your favorite restaurant in Minneapolis and why should people try it?
Manny's (http://www.mannyssteakhouse.com/ 821 Marquette Ave; Minneapolis, MN 55402; (612) 215-3700) There is nothing better than a great steak coupled with a fantastic bottle of wine.

Three Questions, interviews conducted by Stan Friedman, President and Co-Founder of RetroTax, appears twice a month exclusively at http://www.retrofacts.blogspot.com/.

IFA Convention Recap

Myself with: Dina Dwyer-Owens, CEO of The Dwyer Group, Chairwoman, IFA; Shawn Goldsmith, IFA Don DeBolt Scholarship winner; and Steve Greenbaum, CEO of PostNet and immediate past Chairman of the IFA. As talked about in previous posts, for the past 3 or 4 years, I have been very involved with DECA, an organization that among other things, prepares, mentors and trains high school and college students to become America’s next generation of entrepreneurs. Last spring I had the honor of presenting Shawn Goldsmith, of Oceanside, NY, the IFA’s Don DeBolt scholarship at DECA’s National Convention. IFA invited Shawn to our 49th Annual Convention in San Diego, to get a taste of franchising IFA style. Here, I am showing him around and introducing him to some of the best in the franchising business.

Brian Schnell, attorney for Faegre & Benson, and myself.

Me with: Michael Roman, CFE, Fuels Franchise Strategy Manager of Exxon Mobil Corporation; Shawn Goldsmith, IFA Don DeBolt Scholarship winner; and Fred DeLuca, Founder of Subway.

From my perspective, this year’s IFA Convention was amazing.

First, on a personal note, while I teetered on the edge of losing it toward the third day, I actually managed to keep my voice this year. My apologies to those who might have wished for the alternative… my thanks too, to those that didn’t encourage me to smoke “just one more” cigar at the bar each evening. No names need be mentioned, because you know who you are. (Ron Feldman)

This Convention was very powerful in what it delivered. Jim Bugg, Bill Clinton, and Cary Fiorina all delivered powerful keynotes that basically stated that the future of America is in the hands of small business. Certainly, there are situations and conditions that we can’t control, but if we keep our eye on the things that we can, we will emerge victorious. I believe that is true. Yes, we are living in some very scary times and no doubt, more changes lie ahead. How we manage what we can control though, can and will make a difference.

The economy was, of course, a hot topic at the Convention, for franchisors as well as franchisees. I guess we are each playing the same game on different playing fields. Our franchisees are charged with growing their businesses locally, just as we are with growing our brands globally. At the local level they must seize each and every opportunity to make the most of whatever twists or turns they are confronted with. No different than what most franchisors are confronted with, just that we play our game on a larger playing field. Otherwise, it’s very much the same for each of us.

But despite the bumpy economy, the Convention experience was excellent. For RetroTax, the Convention presented new opportunities for national accounts that we can service; three new prospective franchisees; and a tremendous amount of collective intelligence shared by and with my peers.

With that said, whether using it as a connector to new business leads or as an educational resource, an IFA membership is a good idea anytime, but COMPELLING in times like these. There is no other single event (the annual IFA Convention – 2010 in San Antonio) that can offer so much at one time, in one place across each and every discipline of our business model, to the benefit of everyone in franchising. Operations, Marketing, Franchise Development or Administration: Whether you’re a start-up or legacy brand, there was something for everyone at this Convention.

Besides the convention, there are other IFA events franchisors, franchisees and suppliers alike should attend. For instance, I will speak on behalf of the IFA Diversity Institute and Minority Fran initiative, at the upcoming IFE in Washington, DC, March 20-22, another good opportunity to connect, learn and thrive forward.