Many 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 […]
Learn MoreTrademarking, a type of federal registration, is meant to enhance your organization’s rights and protect your intellectual property. With trademark law, you are able to solidify legal protection for a word, phrase, symbol, design — or even a combination of those — that identifies and distinguishes your company and its products or services from competitors […]
Learn MoreFranchises are often sold to prospective franchisees on the grounds that they will “own their own business.” For example, one franchisor advertises to prospective franchisees by stating that franchising “provides you with the opportunity to own your own business.” Another franchisor’s website states: “We highly encourage our franchise candidates to visit with our franchisees to […]
Learn MoreFranchisees are often unaware that franchisors can audit any and all franchisee records once they have bought a franchise. Franchisor auditing practices can create a lot of problems for franchisees. 1. Franchisors often recruit outside auditors that may not understand the business. This can result in auditors finding “franchise revenue” where there is none. For […]
Learn MoreWhen you go into business for yourself, you know that you are ultimately responsible for its success or failure. There may be market factors that take a toll, and there may be forces of nature that you may not be able to overcome, but you know that how you weather the downs and take advantage […]
Learn More