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A franchisee signing a franchise agreement may waive the right to a trial with a judge in a court of law should a dispute arise. The arbitration clause in franchise agreements has long been a point of contention that franchisees believe is unfair. When a franchise lawyer drafts the company's franchise clause, the terms often state that all disputes between a franchise and franchisor will be settled by an arbitrator. The place of the arbitration is often at the convenience of the franchisor, such as in the same town as the home office, and may force the franchise to travel thousands of miles. Arbitration hearings can up to a week or more to
Subway Sandwich franchisees protest against the latest "$5.00 foot-long" promotion saying it is tired and old. Franchise investors agree to abide by the terms of the franchise agreement. The franchise agreement is a legally-binding contract between the franchisee and the franchisor and covers the core categories of a franchisee's operation. A few of the main categories the contract spells out are where a franchisee can purchase inventory, the company training program for the franchisee and his or her employees, and also the marketing of the franchisee's products or services. Nine times out of ten the marketing and promotions of the
No one can deny that our court system has become bogged down, increasingly clogged, and potentially broken. Civil dispute proceedings between individuals and corporations can take months to get to court and months more to resolve themselves. The expectation of having a speedy resolution to a business or consumer conflict seems to be a thing of the past. Today, corporations and businesses from financial services to almost every franchise agreement require the investor to agree to settle a dispute through the process of arbitration where a arbitrator, usually a lawyer, sits and listens to both side of the story and then renders a decision that
Goodwill and a stellar reputation make up the core assets of a franchise model. It is the franchise's reputation for producing a consistent, reputable product or service that lures investors to purchase franchises, and customers to patronize them. Franchise giant Massage Envy's 1000 franchisees are worth billions and are the largest massage/spa company in the country. Until recently, the company's franchises enjoyed all of the benefits of consistent quality and service that one could expect. It is hard to envision another customer going to the franchise giant Massage Envy, however, after almost 200 women filed lawsuits in December of 2017
The perks and benefits of having served in the United States military service run far beyond having someone come up to you in a restaurant and pay for your dinner. Military veterans receive a lifetime of life and health insurance benefits for their families and also qualify for affordable financing for a home or to start a small business. The Small Business Administration estimates that around 10 million military veterans apply for small business financing every year. The Veterans Franchise Transition Initiative (VetFran) was founded in the 1990's to serve as a go-between matching veterans seeking business financing with franchisors that
Demographics should play a role in helping you select the franchise business you want to be in. Anticipating demand from an emerging consumer group will enable you to stay ahead of the curve and supply your product or service to people in need and also have the money to buy what it is you are selling. In 2017 it is abundantly clear that the retirement needs of baby boomers will offer an opportunity to successfully run any number of franchise businesses that a retiring and aging population needs. The most pressing, non-negotiable, need of an aging population is medical care. Older people get sick and need basic medical services. This
It is well known that a good massage is a way to reduce stress, improve posture, and increase your circulation, however, Massage Envy customers are continuing to come forward and sue the company alleging that they have been sexually abused by Massage Envy employees while receiving a massage. The number of sexual abuse lawsuits against industry leading Massage Envy has increased by three recently. It seems as if the more women who came forward and filed suit against the company, the more empowered others became to report the abuses that they allegedly have suffered. Massage Envy is accused of not only aiding and abetting the crime of
Whether you operate a franchise or own a franchise, you need to take assistance from a franchising lawyer for legal protection. Franchising lawyers can assist on various grounds like developing franchise business programs, structuring distribution agreements, and negotiating franchise agreements. They can offer a proper channel of assistance with franchise-related lawsuits involving enforcement, compliance, and non-renewal. When you browse, you may see more than a millions list of attorneys, who covers everything from criminal defense to personal injury to estate
Nowhere in the business world is globalization practiced more than in the franchise industry. If you intend to do business abroad you, need the guidance and expertise of an international franchise lawyer. Every country has different laws and different customs and you first need to become familiar with the country you seek to do business in. International franchise attorney Mario L. Herman works with clients, giving experienced and knowledgeable international franchise legal advice for corporate and individual clients. Mario Herman has experience with international laws and customs on every continent. It is not uncommon for large franchise
There may be no more serious breach of ethics than a franchisee paying their employee full salary and then demanding a percentage of it paid back to them in the form of cash. Such a cash kickback scheme is not only a crime, and in violation of a number of laws, it now has also been determined by an Australian court to be grounds for the franchisor to terminate the franchise agreement and reacquire the franchise store. Over a year ago, franchise giant 7-Eleven became aware of a situation where low-income employees of the franchisees, mostly immigrants, were being paid fair, legal wages only to be required to pay back a large portion of
Franchising is one of the best ways to start a business. Real estate franchise can take your business beyond your imagination but you should have the knowledge of buying power, research and development abilities. The main aim of a USA Real Estate Franchisee is to produce and maintain commitment, loyalty, and promise of excellence from its people and they assure to supply the best service to the people. It’s seen that franchises seek legal assistance from Franchise Attorney in Washington this is because franchise attorney tries to build a legal connection between franchisees, real
Simply because a franchise has hundreds of franchisees, is well funded, and has a large number of employees doesn't mean that they are above committing franchise fraud. As a matter of fact, most fraud occurs at a level higher than the fly-by-night franchise operators. Sometimes serious franchise fraud is committed by those you'd least expect, established companies with a reputation for quality and honesty. For example, On July 27, 2017, Christopher M. Swartz, former owner of Jreck Subs, was sentenced to 12 1/2 years in prison for defrauding franchise investors and the Internal Revenue Service to the tune of over $9 million. Swartz plead
Starting a business by investing in an existing franchise offers young entrepreneurs a quick start into the business world. Buying a franchise may seem like simply being an employee of the franchisor, but only in the sense that your day to day responsibilities will be more or less spelled out for you. Your ability to execute your business will determine the most important factor which is how much money you make. More and more college graduates are opting to purchase a franchise rather than enter the job market through traditional methods and many of them attend the annual International Franchise Industry Convention. On July 14, 2017, the
International Disputes have grown tremendously with Master Franchise Opportunities in USA witnessing a major upsurge. Franchising has become a major business in America with a large number of franchise chains operating across the country and even opening their franchise chains overseas. A large number of entrepreneurs have realized that it is far easy to enter franchise business than going ahead and setting-up an entire business of their own. Master franchising has therefore, become a major part of franchise business. In layman terms, in master franchising the franchisor sells the developmental rights of a particular zone
Hotel franchising is one of the major parts of the franchise industry and no doubt, it is becoming more and more popular. If you are also thinking of commencing your hotel franchise then you need to give it a wise and careful consideration. We all know tourism is one of the biggest industries throughout world. Tourists will always be in want of places to stay. However, you possibly wonder how to begin a hotel franchise. There are many things to take into concern when starting a hotel franchise. The prime step is to decide which franchise you want to pick. There are varieties of hotels available and hence you will have to do some research
Investing in a franchise business not only indulges the great amount of capital but it also brings long-term relationship with the business owner and off course loads of profits with the passing time. International franchises are one of the great options as it gives international exposure and build connections with global entrepreneurs. Though this all seems so enthralling there are many legal and finance related intricacies when it comes to international franchising. Most of us are not able to understand these complexities to be very honest. So what can be done? Well the simple and direct answer to this question will be seeking the best
There has always been a fine line between policing franchisors and discouraging the creation of franchise businesses. While no one wants to promote practices that could potentially abuse franchise formations, a body of law should not be so strict as to make creating a new business prohibitive. In 2007, the American Association of Franchisees and Dealers (AAFD), a non-profit trade association was formed in order to limit franchise fraud and simultaneously encourage franchise business formation. The agency seeks to find a balance between franchise crushing business regulations and over-selling and misrepresentation by franchise salespeople to
The first order of business for a new franchise is finding potential franchisees. Making franchise sales is the lifeblood of your franchise business and the better your franchise sales system are, the more successful you can become. Potential franchisees will not automatically come to you. Targeting the correct group of potential franchisees is critical to making the most of your time and of your marketing budget. You should also think in terms of hiring a franchise sales person or creating a sales force to go out and make sales presentations to potential investors. Before you do this, however, you must have a story to tell. You need to
Hotel Franchise Lawyers Washington can assist you in buying a good hotel franchisee and thus, become an hotelier. With franchising business growing at an extremely fast pace, hospitality sector is too witnessing a boom in franchising. Many hotels have started offering their franchisees to those who are interested in investing their money in the hotel industry and making quick profit. However, before you take the final plunge into franchising it is always good to consult some of the Best Franchise Law Firm in USA that has Hotel Franchise Attorneys
Business owners have been given a renewed sense of optimism that the current Trump administration will do whatever it takes to promote the interests of the franchise industry in the United States. The pro-business White House is now pressing the interests of the franchise industry throughout the world and particularly in Australia. The United States and Australia are at odds over a bill being purported by the new Austrailian Turnbull government that protects immigrant workers from being the victim of wage fraud and immigration visa abuse. US Vice President Mike Pence is expected to represent the US franchise industry's concern over
We've heard President Trump say it one hundred times, "The focus of this administration is three things ... Jobs, Jobs, Jobs"! In a political period characterized by this slogan, keeping track of the number of hirings by franchises within the United States seems more than appropriate. In May of 2017, franchise hiring increased by 18,500 new jobs. This number is a big improvement over an increase of only 4,500 jobs in April. Overall in the private sector, the number of new jobs increased by over 250,000. Restaurants and auto dealers showed the largest hiring increases while business services lagged behind. The unemployment rate as
A recent panel was formed to find answers to the most pressing questions facing franchisees. The panel found that hiring and retaining good employees was their number one unexpected challenge. Almost all small franchise businesses need to find, interview, hire, and then train and motivate their staffs if they are to have a chance to succeed. Many franchise industries rely on their employees for face-to-face contact with the public and franchisees felt that the quality of their employees was the key to their success. The employee issue is one of the areas that buying into a franchise rather than trying to go it alone can help. A good
One of the basic questions that business owners must ask themselves is, "what matters more, the type of business you choose to be in or the condition of the economy at the time you open your doors?" The answer to this question is obviously that both matter. There are many factors that can influence the degree of success your franchise achieves, such as having ready sources for working or emergency capital when necessary. More business owners cite lack of capital as the main reason for the failure of their business. Not being able to weather the inevitable economic downturns you will face can put you out of business faster than anything else,
Location, location, location are the three key ingredients to a successful franchise. In the past, when indoor malls thrived, it was relatively straightforward and obvious where to put your new business. Over the last several decades, enclosed malls dominated the retail shopping experience and retail giants like Macy's, JC Penny's, and Sears served as "anchor" stores. With a large brand name retailer as an anchor store, hundreds of other stores and smaller boutiques were attracted and retail space was soon at full capacity. Malls immediately became the prime retail location to put your fast food or other franchise. Even if you could not get
McDonald's Corporation has decided to go "all in" and adopt a delivery service model in around 3500 of their franchise locations. Effective immediately, McDonald's customers will be able to order the full line offered by their local McDonalds and it will be delivered via UberEats. UberEats is an online food ordering and delivery service, a business unit of the wildly popular Uber ride-sharing online service, allowing consumers to order from any number of restaurants and have the food picked up at the local restaurant and delivered to your location. Anyone with a car that wants to work can sign up to be an UberEats driver. Uber eats drivers
Are drug testing requirements driving up labor costs? Should you be drug testing potential employees? As the recreational use of marijuana becomes legal in more and more states, companies are finding it increasingly challenging to find employees that can pass their drug tests. In Kentucky, methamphetamine use is 47 percent higher than the national average and companies like White Castle, which makes 50,000 hamburgers per hour, is having trouble finding and retaining quality employees. In industries like construction or others that requires one to work around or operate heavy machinery, like forklifts or bulldozers, drug testing is routine.
A Small Business May Fail for Lack of Working Capital One of the leading reasons small businesses fail is the lack of working capital. I don't think you'll ever see a franchise sales brochure or a website that stresses the following, "You had better have 10 times as much money as you think you need on hand to keep you afloat during the first five years when you are bound to lose money hand over fist." But if you ask almost any franchise owner, there is no statement more truthful than the one I have just made. Yes, I may be exaggerating to make a point, but the fact remains that the primary reason that new businesses, franchises included,
Anyone who owns a franchise knows that keeping labor costs low is a critical element of a business strategy. The less you are forced to pay your staff, the more you'll have left for reinvestment to grow the business or to take profit. One of the many labor issues that franchisees deal with every day is the minimum wage. Recently there has been a movement afoot to increase the minimum wage to a "liveable wage" that is estimated to be $15 per hour. Labor issues and the local laws that you need to follow requires that you hire an experienced and knowledgeable franchise attorney. Franchise attorney Mario L. Herman has guided hundreds of
It is only logical to assume that large franchise stores may have negotiated hundreds of leases in the past for successful franchisees and know exactly the location where the franchise should be and how much they should pay to rent the space. It is widely believed that franchise giants, like McDonald's, use their clout in order to negotiate the best possible lease for their franchisees and pass the savings on to them to help lower their operating costs. After all, the lower the rent the higher the profit margin can be. More profits for the franchisee means higher wages potentially for minimum wage employees. One would never suspect that a
Who is responsible for estimating franchise start-up costs? If a Canadian court decision has any say on the matter, it is a joint responsibility. The franchisor has a responsibility to accurately estimate the start-up costs and the franchisee has the responsibility to inquire and investigate whether or not those estimates are accurate. The Canadian court's test case involved Wrapcity Gourmet Restaurants. The prospective franchisee was given the franchise agreement as required by law and discussions took place regarding start-up costs in their chosen location. A year later the franchisee went out of business and sued the Wrapcity claiming
Over the last two years, sales at Chipotle Mexican Grill have plummeted due to a highly publicized E. Coli scare and several food poisoning episodes in restaurants in Ohio, California, New York and Pennsylvania. The Center for Disease Control reported that 52 people reported having E. Coli poisoning with 92% of them claiming to have eaten at Chipotle's within the previous week. Such health concerns chased away customers in 2015 and 2016 and damaged the company's brand that came to be associated more with uncleanliness and careless food handling, rather than in serving healthy food as was the restaurant chain's original plan. Sales fell
If you are considering buying a franchise and getting a fresh start in life, there are some important financial decisions you need to make. If you are coming from a difficult or failing financial situation, you may want to explore your options for starting over. Bringing debts and liabilities from your previous endeavors with you into your new franchise business, may not be the best way start your new business. One way to get a new, clean and fresh financial start on life is to declare bankruptcy and wipe the slate clean. There was a day when declaring bankruptcy was associated with being a failure. Nowadays bankruptcy is an accepted
Purchasing an available franchise is one of the best lucrative deals one could have. Owing a franchise brings a ready-made goodwill, reputation and profits. Considering the right type of franchise is the milestone in making your business successful or not. Hotel franchise is one of the most popular types. People prefer this industry as it offers great opportunities. Food is something people from every length and breadth of the earth love. It is an icing on the cake, if you have the hotel franchise of a good hotel. However, starting a hotel franchise takes lot of things to be considered. If you are thinking about opening your franchise,
Purchasing an available franchise is one of the best lucrative deals one could have. Owing a franchise brings a ready-made goodwill, reputation and profits. Considering the right type of franchise is the milestone in making your business successful or not. Hotel franchise is one of the most popular types. People prefer this industry as it offers great opportunities. Food is something people from every length and breadth of the earth love. It is an icing on the cake, if you have the hotel franchise of a good hotel. However, starting a hotel franchise takes lot of things to be considered. If you are thinking about opening your franchise,
International franchising is one of the most popular businesses irrespective of the size, type or location. However, finding out the right one could be a challenge. The franchise business brings lot of benefits. Owning a franchise brings together the stability of an established business model with the self-rule and income prospective of self-employment. Joining with an "established business" is usually comfortable and familiar for executives who have worked within firms. It is vital to comprehend, however, that obtaining a franchise is not just merely buying a job. When you acquire a franchise, you own the business, its goodwill and all
Women today have a tremendous opportunity to open and operate a franchise business. This blog post highlights the franchise business resources that are being made available to women wishing to start a franchise business in this new and exciting economic and political environment. The political backdrop for women has never been better. President Trump has appointed a woman, Linda McMahon, to head the Small Business Administration (SBA), and the President recently hosted a roundtable of women small business owners at the White House. The president's daughter Ivanka co-hosted the event and is expected to take a leading role in creating
uppose you bought a new house and moved into a neighborhood where your neighbor on the right was Microsoft's Bill Gates, and on the left was founder Jeff Bezos, and across the street was legendary investor Warren Buffet of Berkshire Hathaway fame. Imagine further that every day one of them would walk to their mailbox to get their mail and wave to you, say hello, and invite you over to talk about business whenever you wanted 24-7. That can happen, metaphorically speaking of course, simply by investing a few dollars in the biographies of these highly successful business leaders and other books that they have authored. Go to
When a franchisor fails to live up to the claims they make to franchisees they can be sued in order for the franchisee to recover pecuniary damages. Recently, franchisor Curves, a women's only 30-minute fitness franchisor, has been forced into a jury trial in Texas on behalf of 100 plaintiffs, all of whom are disgruntled Curves franchisees. The plaintiffs claim that the franchisor failed to live up to the promises made in the Franchise Disclosure Document such as the financial prospects of a Curves franchise, the franchisor's failure to provide the assistance promised in opening a franchise, a franchisee having to make additional,
Anyone wishing to purchase a franchise is required to receive a "Franchise Disclosure Document" that has been filed by the franchisor with the Federal Trade Commission. This document is similar to a mutual fund prospectus and must be given to prospective franchisees at least 14 days before the franchisee signs any papers or the franchisor accepts money. When a prospective franchisee reviews a franchise disclosure document, one of the most important items, in my opinion, is the character of the founders and the board of directors such as the Chief Executive Officer, the Chief Financial Officer, and others. Buying into a franchise is like
Resolving in a case dispute of international standards is a completely different sector. It needs a completely new way of treatment as compared to a regular criminal or civil case. While the Indian Master Franchisees and international franchisee lawyers will always be there to assist you, However, you are also supposed to assist the professionals by following certain steps and dispelling certain misconceptions. Compiled here are some of them. Read about them. Myth 1: I must be strict about my decision regarding the case We would say that this is a partially true statement. This is because when you are fighting an
In a precedent-setting verdict, a California judge has ruled that McDonald's Corporation does not control the hiring and thus does not control the payment of wages to the employees of its franchisees. The judge ruled that the payment of wages and compliance with federal, state and local labor laws falls to the individual franchise owner and not the franchisor, the McDonalds Corporation. A recent class action lawsuit against McDonald's was denied class certification and plaintiffs' representative claims were stricken in the case in point, the alleged labor violation at McDonald's franchisee Haynes Family Limited Partnership in Oakland. The
If you have encountered a case of international dispute, it is an unwritten rule that you will approach an International Franchisee Lawyer to resolve the matter. While the decision is definitely praiseworthy, you need to take into consideration few tips too to ensure that the problem is solved in an amicable manner. Here are few essential tips to follow. Be clear When you communicate with the lawyer, you should be clear enough to let him know how you want the case should be solved. Talking out openly with the lawyer will help him in arranging the case accordingly. Do not conceal Never conceal any
Should You Trust a Franchisor's Financial Promises? We all know that it is the objective of a franchisor's marketing literature to paint as promising a picture of the company's future as possible. One of the many items contained in a franchise disclosure agreement, and financial documents, is an estimate of income that a potential franchisee can expect. Popular websites like Facebook and Craigslist also are full of advertisements for licenses and franchises that promote the high-income potential of their businesses. Some franchisors, however, go a little overboard and make financial promises that border on outright
While not a franchise in the true sense of the definition, Amway licenses individuals to represent their brand and a broad array of products for sale. There are no territories and Amway distributors are free to sell products and sponsor distributors wherever they may be. Distributors earn a commission on their sales and some distributors take their businesses a step further, by sponsoring others to become distributors, they earn a smaller percentage commission on the sales that originate from their distributors. The original distributor then earns commissions, not only on the sales of the distributors they sponsor, but also on the sales from
As a franchisee outlet, you must know that cases of international disputes are resolved in two main ways. While one of them is through arbitration and is categorised under adjunctive case, the other one is through mediation and is categorised under concessional case. However, you need to follow few additional tips if you opt for International Mediation to make the case go in your favour. Here are some of these tips to follow. Read about them. Take mutual decisions When you choose International Mediation, it is essential that you have to come to a common conclusion regarding the case of international dispute with your
Have you started the career of an international lawyer lately? If your area of specialization is international arbitration then you might encounter lots of doubts that need to be cleared professionally. One of the critical areas that might give you problems is the manner in which you are supposed to prepare the draft for international arbitrations. Basically, the draft needs to be prepared in the most professional way so that it is to the point and covers all the points. There are lot other issues connected with this. Let us learn in detail about the manner in which you will handle such situations. Keep your calm When
International franchise attorney Mario L. Herman provides a full range of legal services to those looking to invest in a franchise business. Of all the areas of expertise he possesses, none is more important than advising clients of their options should things go wrong in a business relationship. Like a father of a newborn child purchasing life insurance, having a solid understanding of your options to sue your franchisor is an important contingency that must be planned for in advance. You can rest assured that lawyers representing the franchisor, those that crafted the franchise agreement, have inserted clauses that protect the franchisor
A person considering buying a franchise will look to a franchise chain that matches the skill set that he/she may have learned during the course of their career. For example, a CPA with an existing clientele, may look to purchase a tax-preparation franchise, a restaurant chef could invest in a fast food franchise, or a grocery store manager might look to buy into a gas station/convenience store franchise. People might assume that the experience gained from their previous career might equate to owning a similar franchise business model. What is overlooked, is that no matter what type of experience you have, being an "owner" is unlike being an
Even the most comprehensive franchise agreements leave a great deal of decisions that the individual franchisee must solve. As a new franchisee, you should not assume that a franchisor will automatically help you with certain critical business decisions. One of the first and greatest business decision that you can make, is how to select, negotiate, and close the deal on a commercial lease. Rather trying to figure it out on your own, call international franchise attorney Mario L. Herman to work with you every step of the way as you set up your franchise. When we analyze a franchise agreement, one of the first things we check is to what
Purchasing insurance is a necessary evil that you cannot be without. On the one hand, there are more pressing issues that will demand every penny of available capital that you can lay your hands on, and on the other, you don't want to get wiped out in the event a disaster happens. Only you can decide what risks you are willing to take and which you want to guard against. Property Insurance - Should a customer injure themselves while on your property. A slip and fall accident on your property can expose your business to millions of dollars in potential liability that you need to guard against. Also, you need to be compensated should a