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Survey Finds Legal Positions Top Franchise Compensation Rates
A new survey by FranData, Inc. pegged median compensation for franchisors' general counsel at $146,000 per year, including bonuses, topping all other managerial-level positions. The Franchise Compensation Report was released in January, and it can be obtained at www.frandata.com.
“Seeing general counsel at the top of the managerial salary range indicates that job functions that had technical qualifications, such as a law degree, bring higher levels of compensation,” said Darrell M. Johnson, president and CEO, FranData.
In addition to legal positions, the survey tracked salaries for franchise development, site selection/pre-opening activities, franchisee training, field operations, compliance, and marketing. “This type of survey has never been done before. This is the first time that this information is available about jobs with franchise-specific functions, instead of more broad compensation surveys,” said Johnson.
FranData's survey was conducted from September to November 2008. The company mailed surveys to more than 2,000 franchisors, representing more than 3,000 brands. Eighty-seven responses were received with sufficient information to incorporate into the survey; and of those respondents, 11 reported on salaries for legal staff.
Salary data also were collected for professionals who were not managers in each of the seven functional areas. Here, too, average compensation for legal professionals topped the list, at $102,000. However, median compensation showed a different picture, as legal professionals were at about $48,000, which was well below medians for professionals involved in development, operations, marketing, and site selection.
The variation in data reflects that the survey is in its first year and that more responses in the future will improve its accuracy, said Johnson. “There are limits to what we could get in the first year. But we plan to make this an annual survey. Our hope is that as we build on it year after year, more franchisors will understand the importance of contributing to it, and we will be able to become more granular in our analysis,” said Johnson.
Johnson said the survey is especially valuable for new franchisors that have a small number of professionals, each of whom is handling several jobs. “As the franchise grows, the people who wore many hats will have to hire people for stand-alone positions in the company,” said Johnson. “We are now giving them data points and a framework on which to make judgments about job functions and compensation.”
Reflecting the recognition that in any franchise system, people will often have multiple responsibilities, the survey queried franchisors about the areas of functional responsibility for various positions. General counsel reported that about 80% of their time is spent on legal issues, with the balance of their time split between compliance, development, and marketing. Meanwhile, compliance managers reported spending about 10% of their time on legal issues.
Larger franchise systems (251 units or more) reported that they pay their general counsel and legal services staff about 70% more than mid-size systems (51-250 units); there were insufficient responses from small systems to produce data.
FranData also found that compensation for all managers and professionals varied considerably by industry. Table- and full-service restaurants were atop the list, followed by business services and fast-food restaurants. Compensation in retail products and services was at the bottom of the list, at less than half the average of table- and full-service restaurants.
Survey Finds Legal Positions Top Franchise Compensation Rates
A new survey by FranData, Inc. pegged median compensation for franchisors' general counsel at $146,000 per year, including bonuses, topping all other managerial-level positions. The Franchise Compensation Report was released in January, and it can be obtained at www.frandata.com.
“Seeing general counsel at the top of the managerial salary range indicates that job functions that had technical qualifications, such as a law degree, bring higher levels of compensation,” said Darrell M. Johnson, president and CEO, FranData.
In addition to legal positions, the survey tracked salaries for franchise development, site selection/pre-opening activities, franchisee training, field operations, compliance, and marketing. “This type of survey has never been done before. This is the first time that this information is available about jobs with franchise-specific functions, instead of more broad compensation surveys,” said Johnson.
FranData's survey was conducted from September to November 2008. The company mailed surveys to more than 2,000 franchisors, representing more than 3,000 brands. Eighty-seven responses were received with sufficient information to incorporate into the survey; and of those respondents, 11 reported on salaries for legal staff.
Salary data also were collected for professionals who were not managers in each of the seven functional areas. Here, too, average compensation for legal professionals topped the list, at $102,000. However, median compensation showed a different picture, as legal professionals were at about $48,000, which was well below medians for professionals involved in development, operations, marketing, and site selection.
The variation in data reflects that the survey is in its first year and that more responses in the future will improve its accuracy, said Johnson. “There are limits to what we could get in the first year. But we plan to make this an annual survey. Our hope is that as we build on it year after year, more franchisors will understand the importance of contributing to it, and we will be able to become more granular in our analysis,” said Johnson.
Johnson said the survey is especially valuable for new franchisors that have a small number of professionals, each of whom is handling several jobs. “As the franchise grows, the people who wore many hats will have to hire people for stand-alone positions in the company,” said Johnson. “We are now giving them data points and a framework on which to make judgments about job functions and compensation.”
Reflecting the recognition that in any franchise system, people will often have multiple responsibilities, the survey queried franchisors about the areas of functional responsibility for various positions. General counsel reported that about 80% of their time is spent on legal issues, with the balance of their time split between compliance, development, and marketing. Meanwhile, compliance managers reported spending about 10% of their time on legal issues.
Larger franchise systems (251 units or more) reported that they pay their general counsel and legal services staff about 70% more than mid-size systems (51-250 units); there were insufficient responses from small systems to produce data.
FranData also found that compensation for all managers and professionals varied considerably by industry. Table- and full-service restaurants were atop the list, followed by business services and fast-food restaurants. Compensation in retail products and services was at the bottom of the list, at less than half the average of table- and full-service restaurants.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
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Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
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The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.