Inadvertent franchise relationship: What you should watch for


Originally published in the Colorado Real Estate Journal, July 20, 2011 - August 2, 2011.

Franchising, a versatile business model, is not limited to fast-food restaurants. Colorado is home not only to familiar franchise concepts such as Smashburger, but also to concepts not routinely thought of as franchises including Crestcom International and Living Well magazine.

Colorado real estate attorneys working with clients with lease agreements, hospitality venues, licensing, tax, zoning, financing, regulatory and other issues should be on the lookout for the inadvertent franchise relationship because such a relationship can create unanticipated legal consequences. These include civil and criminal penalties, private actions for rescission and damages, and individual liability for control persons. Taking the time to understand the nature of your client’s business and being able to assess whether or not an inadvertent franchise relationship exists allows you to respond carefully to evolving legal needs...

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Civil Remedies Updates, General Business Updates, Franchise Updates, Commercial Real Estate Updates, Zoning, Planning & Land Use Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Snell & Wilmer | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »