Blog
Home | Blog
Communicating is the key to avoiding potential franchise disputes. A franchise dispute lawyer can help resolve conflicts that may escalate to unmanageable situations if left unresolved. According to a reputable franchise dispute lawyer, conflicts are inevitable and should be resolved promptly to maintain the thriving of your business. Raising your grievances helps prevent future disagreements and makes the transacting parties more innovative. Minimizing or Avoiding Franchise Disputes Franchisors and franchisees have a role in
The allure of foreign franchising could be too much for a franchisor whose network is already well-established in its native market. When individuals or firms from other nations ask that franchisor, "Can I do what you do in my country? " the dream is more alluring. In this post, you learn the strategies you must follow to ensure your franchising experience is successful. Step 1: Understand the Franchise You want to develop a solid international franchising strategy when expanding your franchise internationally. Firstly,
Signing a master franchise contract is a critical decision. Even with all the advantages franchising offers aspiring business owners, the financial fallout can be disastrous if things don't work out as expected. Consequently, it is strongly advised to use a franchise lawyer. In this infographic, we will outline three justifications for why it is crucial to get a franchise lawyer.
The franchisor and the franchisee will likely benefit from hiring a skilled franchise agreement lawyer. They can assist you in comprehending the Franchise Agreements and FDD's intricate details. In addition, they can help you draft legal documentation, steer clear of potential legal conflicts, accurately interpret your state's franchise rules, and put you in touch with the appropriate people. However, how can you be sure you are choosing the right franchise attorney for your company? Here are some pointers to help you.
The franchise law is a blend of federal and state laws used in several ways–governing the registration, offer, and sale of franchises and regulating the legal relationship between the transacting parties–franchisors and franchisees. A franchise law attorney can help you understand how franchise law works. The Federal Franchise Rule governs franchised businesses in the United States and applies to all fifty states. That said, it's essential to consult a franchise law attorney if you're looking forward to starting a franchise in the U.S. The
The internet has lately become an excellent place to market your franchise. This levels the playing field for new entrants (new franchisors) because the entry barriers are typically low. Although the internet has simplified starting a franchise, you still need a franchise dispute lawyer for legal counsel. You need a reliable and competent partner (franchisee) to succeed in franchising. In addition to seeking help from a franchise dispute lawyer, you should be able to attract and hire the right candidate to take up the role of a franchisee. So, how do you
NEW YORK (AP) — In 2020, Kelly Jackson and Davina Arceneaux wanted to leave their company jobs and become business owners. They were looking for something both COVID-proof and recession-resistant. Instead of completely stepping out from under a corporate umbrella, they looked at franchising. The two worried about the notoriously tight margins for restaurants. They looked at a drug testing franchise, but the initial investment was too steep. A franchising mentor told them about Motto Mortgage Home Services, and Jackson and Arceneaux opened one in Oakbrook Terrace, Illinois, in July of 2020 with an initial investment of
Handling the legal formalities is one of the most important things when you are a business owner. If you are planning to take up a restaurant franchise, you need to hire a restaurant franchise attorney and ensure all the formalities are in the right place. If you are unsure how to hire one, this infographic is specially curated for you! So, let's have a look at what we have got!
One man’s meat is another man’s poison, meaning that one person may enjoy or thrive in franchising while another may not excel in this area. You should tread carefully if you’re considering buying a franchise. The good thing is that the advice of a master franchise attorney helps you start on the right footing. 4 Signs that Master Franchising isn’t Your Thing The following are some signs that you may not excel in
Many business people new to franchising want to buy new stores. They are not aware of other ways to own a franchise business. Buying an existing franchise could be beneficial as you purchase a current income stream devoid of expense to set up a new outlet and train employees. If you consider purchasing an existing franchising business, crucial factors to consider include: Review the Franchise Disclosure Document Buying an existing franchise business requires following a franchise agreement like the previous owner. You must sign a contract even though you are investing in an existing franchised entity. So you
Mediation is a handy tool for resolving conflicts. It is advantageous when the parties wish to preserve a friendly relationship even after fixing the dispute. It takes place over a short period, decreasing strain, cost, and time. Want to know a few more advantages before hiring a reputable International franchise mediation services for your business? Let's have a look at this infographic.
Linguistic and cultural barriers can play a significant role in the success or failure (performance) of international franchising. Therefore, understanding a target market's cultural and linguistic issues is necessary when drafting an international master franchise agreement to set up your brand for success. An excellent international master franchise agreement should be drafted by an attorney who understands the people’s ways in foreign countries to avoid linguistic and cultural barriers. Besides, a local attorney will help you understand
There are a lot of times when you are ready to open a new franchise, but getting through all the paperwork is proving to be a challenge. That's not a problem; we are here to help. If you are looking for a franchise lawyer to help you with SBA franchise default rates and finalize the contract, this is just the right place! Let's get to know a few tips on looking for the best franchise Lawyer in the USA.
You’ve probably come across the term “SBA loans” when searching for business financing or funding. It’s essential to understand everything about SBA loans, including what it is, SBA franchise failure rates, their application, and more. An SBA loan (Small Business Administration Loan) is one of the best financing options for small businesses. SBA loans are better financing options for franchised firms because the government typically subsidizes them, although SBA franchise failure rates can vary by business
International franchising can be lucrative if done right. However, it comes with risks but provided your global franchising strategy is well thought through, there’s no cause for alarm. Developing an excellent international franchising strategy requires effort and dedication to succeed. You’ll need to know whether your products are in demand in the target market. That means hiring experts to perform various tasks on your behalfs, such as market research, workforce recruitment, and legal research. International Franchising
If you plan to open an international franchise and look for someone to handle international effortlessly, here is an infographic to help you look for the best lawyer in town. So, what are you waiting for? Let's have a look at what this infographic has got for you!
Found an amazing international franchise that you plan on investing in the future? Have you sought out a franchise attorney’s advice? If not, you must know about the risks of the situation. We can help you analyze an international master franchise agreement. We are here to help!
Franchising allows local businesses to increase their market share by penetrating new locations or markets, particularly in lucrative regions–such as the U.S. A master franchise operates like your ordinary franchise, but slightly different. In a master franchise, master franchisees assume the role of a franchisor in their territory. The master franchisee acquires exclusive rights to train and support new franchisees, just like ordinary franchises. If you’re considering a master franchisee in the U.S.A, you should consult a
Are you looking for an unbiased opinion on purchasing another franchise but do not know who is the best one to trust? If you wish to go ahead with a master franchise in the USA then, hiring an attorney is a wise decision. Here are some reasons why hiring a specialized attorney is essential.
When deciding to franchise your business, it is essential to weigh the pros and cons of such a move appropriately. This article will discuss some of the pros and cons of franchising your business. According to Statista  [Franchising in the U.S. - statistics & facts | Statista], in 2020, an estimated 753,700 franchises establishments in the United States. These franchise businesses’ output was $670 billion and employed 7.5 million people. After reading such statistics, this could move any business person to want to
An International Master Franchise Agreement is a contract between an international master franchisor and the master franchisee. It defines the rights and responsibilities of both parties and all legal issues that may arise throughout the term of their business relationship. This document is crucial to starting a successful business, so it is important to include clauses for each issue that could arise during the term of the agreement.
If you are thinking about buying a franchise or have already done so, it is highly recommended that you hire an attorney to help navigate the legal terrain associated with franchising. Therefore, franchise contract review is essential to conduct before making the decision of whether or not to purchase a franchise. Here are some reasons why you might want to consider hiring a franchise attorney:
Using mediation to resolve business disputes is better than the costly alternative of going to court. Mediation is done voluntarily, where the disputing parties consult an impartial third party, the mediator, to work out a solution to resolve business conflicts. Meditation can be considered a better conflict resolution approach than business litigation. Mediation is usually cheaper, less time-consuming, predictable compared to litigations and allows the disputing parties to innovate an ideal and practical solution for their conflict. It should be the objective of all international businesses to have efficient and predictable
When setting up a business, the individual can set up one from scratch or select franchising. There are several advantages and disadvantages that come with being a part of a franchise. Individuals are not limited to franchises within their country but can extend their reach to international franchising depending on their circumstances. This article will discuss some of the benefits and challenges associated with international franchising. According to the International Franchise Association (IFA) [What is a Franchise? | International Franchise
Purchasing a franchise is one of the most crucial decisions, and if things go wrong at any point, it can be a hard pill to swallow. Hiring a franchise dispute lawyer can help you figure out the best way to get out of a difficult situation. We are sure hiring a professional attorney can be a lot more beneficial than handling everything alone.
Below are some clauses typically found in these documents: Provincial exclusivity Territorial exclusivity is a contract clause that defines the exclusive territory in which an international master's franchise will operate. This ensures brand consistency and quality for customers and reduces competition from other organizations owned by the same franchise within this area. Granting Intellectual Property Rights A business with a master franchise agreement will license its brands, trademarks, or other intellectual property to be used by the franchisor. Franchise Fees Franchise fees are the associated costs that a master
If you have been thinking of starting up a fitness franchise, you may be concerned with the steps you need to take to get started.  Fitness franchise offers a vast opportunity that, if done right, can be a successful business.  As a franchisee, you get to deal with established marketing strategies. However, this doesn't erase the fact that you will have to meet hurdles that may require you to be legally prepared.  It is advisable to understand the process you are getting into. You can get help from a franchise contract lawyer. Such a lawyer can help
Most people hardly think twice when they walk into a KFC, Great Clips, Hampton Inns and Suites, or 7-Eleven about whether or not it is a franchise. However, more often than not, the issue of the franchise comes into play when questioning the quality of service or goods based on the “expected standard” when dealing with a specific franchise company. According to a survey carried out in 2005, 900253 established franchised businesses generated $880.9 billion of output. According to a report by Statista [• U.S. franchise
No one can afford to work without a lawyer in their team in the current business climate,whether private or publicly owned. Disputes can arise out of nowhere, and employee or business owners'zrights need to be protected. Having a lawyer who understands your business allows you to be on the competitive edge. In addition, in case of any disagreements, you can be assured of being legally protected. If you have a franchise business or want to start up an opening, you need to understand the legal implication with the help of a master franchise attorneycto protect
The ongoing rights for the franchisee include but are not limited to: the right to use the trademark and goodwill associated with the trademark, use of trade secrets, use of operations manual and know-how, copyright material, and other proprietary material. The intellectual property rights (hereafter IP) that the franchisee has access to is the franchise agreement core element. Without IP rights, the franchisor would have nothing unique to offer the investor. That is why every franchise agreement has some form of IP grant for the franchisee to use. Depending on
Self-regulation is a vital aspect of regulating franchising. From a societal standpoint, there is no need to interfere with legislation if a less onerous measure works in all parties' favor. The International Franchise Association is the largest Association in the USA. We will be looking at the European Franchise Federation (EFF) and its purpose in today's blog. The EFF was created in 1972 in France as a non-profit institution tasked with creating awareness for franchising in Europe. There were only four founding associations, and currently, there are 15 associations part of the EFF.
Franchising in the USA and the world has not avoided being affected by COVID-19. The predictions that the coming winter months will see a rise in COVID-19 cases appear to be true. Therefore, it is wise to make sure what kind of protections a franchisee has in their franchise agreement or commercial lease if there are lockdown measures put into place. A franchise attorney can help you negotiate with your franchisor and landlord some interim measure if COVID significantly impacts your
During this Pandemic, many restaurants have needed to adapt to a new environment and expand their business practices. One type of expansion includes food delivery, and a quick and easy way to get involved in the food delivery business for restaurants is to register on a third party delivery platform such as Grubhub or Uber Eats. Franchisees using these third-party delivery platforms are faced with a new problem. Namely, franchisees are paying royalties on money that the franchisees never receive. The reason for this is that money does not exchange hands directly between the customer and the restaurant. Instead, there is an intermediary
There has always existed a tension between the independent nature of franchising and the close relationship between the franchisor and franchisee. Since there is no Federal Act governing franchising or franchise agreements specifically, this means that franchising is susceptible to individual states' acts and regulations. California codified the case of Dynamex Operations West, Inc. v. Superior Court of Los Angeles in September of 2019, which is called the California Assembly Bill No. 5 and is commonly referred to as AB 5. The purpose of the act was to update the definitions of what constitutes an independent contractor in the current
LEGAL ISSUE: What available legal defenses exist for a franchisee to stop paying royalties and a lessee to stop paying rent according to their obligations stated in the lease agreement during a pandemic? RULES: The doctrine of impossibility states that "Where, after a contract is made, a party's performance is made impracticable without his fault by the occurrence of an event the non-occurrence of which was a basic assumption on which the contract was made, his duty to render that performance is discharged, unless the language or the circumstances indicate to the contrary." According to the
In these socially and economically trying times, franchisees may find themselves between a rock and a hard place. When the vast majority of US states have ordered only essential businesses to remain open, some franchisees are forced to close their doors to customers. However, both the franchisor and landlord may still want the franchisee to continue paying them according to the obligations set out in the franchise agreement and lease agreement. If you Can't pay franchisor in this type of situation, the franchisee may be unable to pay its franchisor or its commercial lease. Contractually, the franchisee may have a way
The people who want to start their business, not from scratch are opting to purchase the franchise. These days the franchise companies have become a great target for attractive sources and other firms are interested in investing the capital in private businesses mostly. This would include the ongoing royalty stream, the potential for additional growth and expansion without the capital investment and the existence of the preexisting networks of the operating partners. These are the things that are mainly specified by the U.S. Based Franchisor. The potential
Do you want to invest money in a franchise? Do you really want to do business? Then the European franchisees are the best alternative among all to take. There are many well-developed and top best countries are comes under Europe who has different culture, customs, societies, and market. According to the research, there is numerous type of franchise brand in European countries. The franchise can take your business to the next level. There are many new businesses that have failed in the first year or over the next five years. However, with the franchise over 90% of business is successful and can give them opportunities to earn money. The
Once a franchisee is up and running, the franchisor should support the franchisee in various ways. The exact support services that the franchisor is obligated to give the franchisee, is stipulated in the franchise agreement. Each franchisor must find the correct balance of support services to use. The first type of support service the franchisor should provide is support staff in the field. Support staff are the franchisee's first point of contact and act as an intermediary between the franchisor and the franchisee. If the franchisee needs guidance, training,
While creating an operations manual for a franchise, you should be wary of some common mistakes that franchisors make. The franchise operations manual is not the company operations manual with a different title. If a franchisor possesses a company operations manual, it should be edited to help franchisees with maintaining system standards while not stating the exact means of how a franchise is to operate, e.g., dictating the specific selection method of franchisee employees. In other words, a franchisor must not micromanage the franchisees day to day activities in the operations manual due to the increased risk of vicarious
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