On today’s RealTrending podcast, host Tracey Velt, senior director of data and content for HWMedia, talks to Patrick MacQueen, a real estate attorney and founder of Medalist Legal in Arizona.
MacQueen discusses the top mistakes agents and brokers make with independent contractor agreements and franchise agreements. He’ll go over best practices, what should be addressed in each contract, and the most overlooked areas that could mean legal complications down the road.
Here is a small preview of today’s interview with Patrick. The transcript below has been lightly edited for length and clarity:
Tracey Velt: What are some of the best practices for brokers who are ready to join a franchise?
Patrick MacQueen: Read the documents. I can’t tell you enough times that that just isn’t happening. And I don’t know why. But I think it’s just that they’re in a rush and they’re so excited. I get to be my own boss. I get to open my own shop. I’m more excited about just getting open and then actually understanding how things are going to be and what I’m gonna have to do to get this thing opened.
Once the document is signed, you’re stuck. Then, it is very, very difficult to modify or amend a franchise agreement, it is nearly impossible. Also, use third-party experts who know about lease rates, legal provisions that need to be in your lease, and about your franchise documents. You need to consult with third parties. Get a good understanding of those documents. Get with good third parties that can help you in terms of your documents. Those are really the two keys that I see not happening. If you do those two things you’re going to be head and shoulders above at least 75% of the other folks that are doing these.
The RealTrending podcast features the brightest minds in real estate. Every Monday, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.