Franchisee as commonly asked to sign a general release of claims when entering to a franchise agreement when to transfer a franchise, when renewing a franchise, and when entering to a settlement agreement. Under a general release of claims, franchisees
The Federal Trade Commission (FTC) drafter of the Franchise Disclosure Rule, which requires the delivery of the Franchise Disclosure Document to prospective franchisee is looking for comments. The comment requires part of the FTC periodic review of the cost and
It shall be an unfair or deceptive act or practice or an unfair method of competition and therefore unlawful and a violation of this chapter for any person to sell, rent, or offer to sell to a franchisee any product
Back in 1925, Congress passed a law allowing for the enforceability of arbitration clause in contracts. A written provision in . . . a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out
Almost universally, franchise agreements expressly state that the filing of a claim in bankruptcy is grounds for immediate termination of the franchise agreement. But, in reality, bankruptcy laws, prohibit the franchisor from terminating the franchise agreement based on the franchisee’s
Poaching in the employment realm is the act of scouting, soliciting, recruiting, and hiring employees already employed by another entity. The consequence of having a key employee poached can be a great hardship on the business, and it can create
Yes, it is that time of year. Every year 120 days post the close of the franchisor’s fiscal year, the franchisor disclosure document must be updated with the previous year’s data. The update is required by the federal FTC Franchise
It is not uncommon for a prospective franchisee to purchase and sign a franchise agreement before forming a limited liability company or corporations. Again, not uncommon and it is not a big deal. However, it is important to make sure to transfer the
You have your Franchise Disclosure Document [FDD] updated, and you are ready to sell franchises. Before advertising, there may be one other step that you need to take. The following states require that your franchise advertisements be submitted for review
Wrapped branded vehicles are a wonderful way to promote your franchise brand. It is like a moving billboard. But what happens when the vehicle is involved in an accident and is totaled? What happens to the vehicles? In the case
