The Securities Division of the Indiana Secretary of State issued a press release this week announcing that it filed an administrative complaint against Florida based Mac and Cheese Franchise Operations LLC and its parent...more
Back in December 2022, we published a blog informing readers that guidance on franchise sales brokers and agents may be on the horizon. The North American Securities Administrators Association’s (“NASAA”) Franchise and...more
A district court in Georgia recently granted a Motion for Preliminary Injunction filed by HOA Franchising, LLC’s, the franchisor of the Hooters restaurant chain (“Hooters”), against one of its former restaurant franchisees,...more
A federal district court recently granted the United States’ Motion for Default Judgment against the quick-service burger restaurant franchise concept, Burgerim Group USA, Inc. and its owner (“Burgerim”). The Federal Trade...more
New and emerging franchise systems are often very eager to sign those first franchisees. All too often, they are willing to make concessions to get the franchisees on board, despite their franchise attorney’s recommendation...more
One of the most highly anticipated portions of the IFA Annual Convention each year is the case study workshop conducted at the Annual Leadership Conference. All 350 attendees are provided a real-world scenario based on an...more
One of the most hotly debated and discussed questions among franchise system owners and operators is whether to engage outside franchise sales agents, brokers, franchise sales outsource companies (FSOs), or all of the above,...more
A recent case decided by the Ohio Court of Appeals reminds new franchisors to tread carefully when converting existing licensees to future franchisees. In the case of Okolish v. Town Money Saver, Inc., a coupon clipper...more
A recent court case (Cognex Corporation v. Air Hydro Power LLC) between a distributor and manufacturer is a reminder to franchise attorneys that not all amounts paid by a licensee to a licensor qualify as a “franchise fee”...more
You are an entrepreneur. You created, founded and currently operate a successful and vibrant business. Perhaps customers, family members, or friends are loyal fans of your brand and are approaching you with a request to...more
So now you know what it means to “franchise” a concept or brand. You want to move forward in this exciting new opportunity and franchise your business. What are the next steps you should take to prepare yourself to launch? ...more
Last year, the North American Securities Administrators Association’s (NASAA) launched the Franchise Electronic Filing Depository System (“FRED”), the nationwide online filing portal for state franchise registration and...more
This week the Washington Securities Division announced that it is considering an amendment to the Washington Administrative Code (“WAC”) to formally adopt the Statement of Policy Regarding the Use of Franchise Questionnaires...more
This fall we posted about the North American Securities Administrators’ (NASAA) adoption of a Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments (the “SOP”). Technically, NASAA’s SOP...more
As expected, the majority of this year’s State Regulatory Update Workshop at the Annual ABA Forum on Franchising Annual Meeting in San Diego, focused on the new NASAA Statement of Policy Regarding the Use of Franchise...more
I had the pleasure this year along with fellow franchise attorneys, Gerry Wells of Rita’s Franchise Company and Allan Hillman of Garcia & Milas, to present at the ABA Forum on Franchising Annual Meeting in San Diego. The...more
The right to rescind (or void) a contract is an extraordinary remedy. However, as franchise lawyers know, certain states provide franchisees a right to rescind a franchise agreement in certain situations, particularly where a...more
11/16/2022
/ Breach of Contract ,
Contract Terms ,
Fair Dealing Exception ,
Franchise Agreements ,
Franchise Fees ,
Franchises ,
Good Faith ,
Investment ,
Non-Compete Agreements ,
Rescission ,
Trade Secrets
When a business is deciding to franchise its concept, the task “to-do” list is never-ending. Identifying the most critical issues and deciphering what are “necessities” vs. “nice-ities” for an emerging brand was the topic of...more
The recent case of Rhine Enters v. Refresco Beverage out of the federal district court of the Southern District of Illinois should be a reminder to licensors and manufacturers that avoiding the “fee prong” element of a...more
More and more states are launching online portals allowing franchise systems to file initial registrations, exemptions, renewals and amendment applications electronically. The Indiana Secretary of State, Securities Division...more
The new year is often a time when successful entrepreneurs with thriving business concepts start looking to expand their brand using a franchise business model. Franchising is an excellent way to grow a business rapidly,...more
As a cannabis business in a brand-loyal industry, the top reason to consider the franchise model is to maximize return on a good idea. This resource outlines key benefits, regulatory issues and operational elements that can...more
“Someday, California is going to disappear into the ocean.”
That phrase usually refers to the San Andreas Fault. But for those in the franchise industry, it may now refer to AB-5, a new California law that calls for...more
In my recent experience, most franchise start-ups and emerging systems typically charge a technology fee or, at a minimum, reserve the right to charge a technology fee in the future. These fees are easily justifiable....more
The Philadelphia Chapter of the International Franchise Association’s Women’s Franchise Network hosted its annual summer meeting this past week. For those of you who do not know, the local chapters of the IFA WFN’s is a...more