The world of franchising has become layered with complexity. In every franchise system there is always a franchisor that grants the license and owns the trademark. There is always a franchisee that uses the trademark and operates the franchise location or unit. But there may be many layers in between. There could be subfranchises,… More »
What is an Area Developer? What is a Subfranchise? What is an Area Representative? How are they the same? How are they different? The 3 concepts are somewhat fungible and there is much confusion about the overlap and the differences. Recognizing this, the Franchise and Business Opportunity Project of the North American Security Administrators Association,… More »
A jury in the case of ALASKA RENT-A-CAR, INC. v. AVIS BUDGET GROUP, INC. awarded an Avis franchisee $16 million in lost profits following the acquisition of the Budget Rent-A-Car by the Avis franchisor. At the heart of the case is a 1995 settlement agreement. Per the settlement agreement the Avis franchisor promised “the sales,… More »
Perhaps without exception, all franchise agreements contain a non-compete covenant. The covenants may vary. The covenants may prohibit you from operating a competing business or any business when you are a franchisee. And after the franchise relationship ends, you may be prohibited from operating a competing business for 1 or 2 years at the franchise… More »
In the franchise industry the deployment of Release of Claims is common place. A Release of Claims may be a stand-alone agreement or may be embedded in a franchise transfer agreement, franchise renewal agreement, franchise termination agreement, and numerous other transactions. Whether you are franchisor or franchisee, learn what questions you need to be concerned… More »
Over the last several months we have been posting about updating the franchise disclosure document. For many franchisors, the time to update the franchise disclosure document was April 30th. With the deadline for updating the franchise disclosure document past, it is now time to re-focus on the franchise sales. View Survey
Copyright (c) 123RF Stock Photos What happens? Consumer trips and falls at a franchise store. Home owner complains that the franchisee’s work is shoddy and wants his money back. Franchisee’s employee alleges a failure to pay overtime. More times than not, the franchisor gets sued along with the franchisee for these issues. It happened at… More »
Franchisors and business owners, do you want to have a presence in more states? Do you want to reach more consumers? Do you want to reach more consumers? Some states require a registration or exemption before selling or offering a franchise! Watch the slide show to learn more.
With 120 days post the close of the fiscal year fast approaching, franchisor must decide when to issue their updated franchise disclosure document [FDD]. It is not as simple as picking a date out of the air. Here is an infographic about the considerations for selecting an issuance date.
When can a franchisor terminate a franchise? It says it right in the franchise agreement. Probably, toward the back of the franchise agreement, it says the franchise agreement may be terminated if….. These reasons for terminations in legal vernacular are called defaults. There are defaults that can warrant the franchise agreement being terminated… More »