Franchisees frequently tell us that they are unhappy with their franchisors. This can be for any number of reasons — inadequate training, poor marketing, lack of lead generation, ineffective website, etc. Often, it boils down to the following statement: “I am making franchise royalty payments, but I’m not getting anything in return.” These franchisees ask […]
Learn MoreIn the traditional franchise relationship, franchisors work directly with franchisees to provide training, approve advertising material and otherwise support their franchisees through the various stages of the business. In some systems, however, franchisors delegate their support requirements to master franchisees, also commonly known as area representatives. If you are a potential franchisee looking into a […]
Learn MoreIt’s a common question among franchisees: Can my franchisor impose obligations on me before I can take them to court? (e.g. in-person meetings, mediation, etc.) Franchisors commonly require that franchisees participate in meetings or mediation to try to resolve disputes informally before the franchisee can file a lawsuit or arbitration demand. Franchisees should be aware […]
Learn MoreMany aspiring entrepreneurs turn to franchising to jumpstart their careers in the business world. An industry newbie can benefit from the well-established market, reputation, and business model of an existing franchise. With training and support from the company, a franchiser can use this opportunity as a launch pad from which to grow the business even […]
Learn MoreSo you want to close your franchise? You’re not alone. A survey of more than 1,100 franchise owners across various industries in around late 2014/early 2015 showed that more than half of franchise owners do not think that they make a fair profit, 91 percent were in debt, and around 66 percent operated at a […]
Learn MoreA “general release” is a document in which one person releases another from any claims or threats of lawsuits. Franchisors often require franchisees to sign general releases at various points in the relationship to insulate themselves from franchisee lawsuits. If, as a franchisee, you have signed a general release, in all likelihood you will not […]
Learn MoreOn behalf of Garner, Ginsburg & Johnsen, P.A. on Thursday, September 20, 2012. In most cases, franchisors and franchisees do not have fiduciary relationships. Franchise agreements are complex documents that set forth, in detail, the relationship between the parties. These agreements create a complex, arms-length business relationship that is not a fiduciary relationship. What is […]
Learn MoreThe COVID-19 pandemic will have a lasting impact on many facets of society, including franchisees of companies both large and small. Even after restrictions are lifted and a vaccine is distributed, prospective franchisees should incorporate COVID-19 and emergency-related due diligence questions about the franchisor’s reaction to the pandemic. Prospective franchisees may find that the actions […]
Learn MoreIs an Email Legally Binding? Several courts in the United States have recently ruled that email exchanges are sufficient to create or modify written contracts. Franchisees should be aware of these decisions to avoid unintentionally binding themselves in enforceable contracts. When Are Emails Enforceable Contracts? Certain contracts (including ones dealing with real estate, goods worth […]
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