Fractional General Counsel: The Scalable Law‑Department Solution for Growing Businesses

1. What is a Fractional General Counsel?

A fractional general counsel (FGC) is a senior attorney who integrates with your leadership team for a set number of hours each month—essentially an on‑demand legal department. You receive the strategic depth of an in‑house General Counsel but only pay for the capacity you need, typically saving 70–85 % versus a salaried hire.

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2. Why founders & CFOs love the model

Common pain point	How an FGC fixes it
Compliance keeps changing (privacy laws, wage‑and‑hour rules, ESG reporting)	Monitors new regulations, updates policies before deadlines hit.
Contract backlog	Reviews or drafts vendor, customer, and SaaS agreements within agreed turnaround windows.
Unpredictable legal invoices	Flat monthly fee or hard cap delivers budget certainty.
Need board‑level guidance but not full‑time overhead	Attends quarterly meetings, preps risk memos, then steps back until needed.

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3. Sample scope of work

• Risk‑triage call (week 1) to flag emerging regulatory or litigation issues
  
• Contract pipeline — redline or draft a set number of agreements
  
• Compliance monitoring — track federal/state changes (think GDPR/CCPA, FTC endorsement updates, OSHA)
  
• IP watch & maintenance — watch trademark filings, oversee renewals
  
• Leadership alignment — 30‑minute strategy huddle with CEO/CFO; coordinate any outside specialists
  

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4. Cost comparison: Full‑time GC vs. FGC vs. “bill‑by‑the‑minute” firm

Model	Annual cost	Predictability	Strategic alignment	Ideal when…
Full‑time GC	$275k-$450k salary + benefits (US mid‑market, 2024)	High	100 %	Legal questions arise daily
Traditional outside counsel	$400–$900 hr	Low	Task‑specific	Short, complex projects; litigation spikes
Fractional GC retainer	$1k–$5k mo (many SMBs start ~$1,500/mo for 5 hrs)	Very high	Embedded	Growing revenues, but not yet GC‑worthy payroll

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5. Five signs you’re ready for a fractional GC

1. Contract queue exceeds two per month (vendor renewals, customer MSAs, NDAs)
   
2. You’re expanding to new states or countries and need compliance briefings
   
3. Investors ask for legal due‑diligence memos before funding rounds
   
4. IP filings or renewals are getting missed (trademarks, patents)
   
5. Leadership team spends evenings Googling legal templates instead of building product
   

Tick two or more? The pay‑as‑you‑go model may already be costing you more.

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6. How the engagement typically unfolds

1. Scoping call (free, 30 min). Identify pain points, pick an hourly tier, sign a flexible retainer (cancel anytime with 30 days’ notice).
   
2. 90‑day sprint. Build a Legal Ops Roadmap:
   
   • Contract template library
     
   • Compliance gap analysis (privacy, employment, corporate)
     
   • IP asset inventory
     
3. Quarterly recalibration. Adjust hours as sales cycles, fundraising, or expansion plans evolve.
   

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7. Frequently asked questions

Q: What if we exceed our allotted hours?
A: Most retainers include a discounted overflow rate—still below partner‑rank outside counsel. Unused hours roll forward for one quarter, letting you bank credit during slower months.

Q: Can one attorney cover everything?
A: Your FGC is the quarterback. When highly specialized issues arise (tax, international trade, litigation), they coordinate vetted specialists and cap fees.

Q: Will investors respect the model?
A: Absolutely. Many venture and private‑equity firms prefer the lean law‑department approach until legal complexity justifies a full‑time GC.

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Key takeaways (TL;DR)

• Fractional GCs provide board‑level legal strategy without a six‑figure salary.
  
• Flat‑fee predictability unlocks smarter budgeting and cashflow management.
  
• When contracts, compliance questions, or investor asks top two per month, consider a flexible retainer.
  
• An FGC keeps leadership focused on growth, not Googling legal templates at midnight.
  

Legal shouldn’t bottleneck your momentum. Let a fractional general counsel shoulder the complexity—so you can focus on scaling your business.