Whether or not you, as a franchisee, can assert claims in a lawsuit against your franchisor is a loaded question. On one hand, the answer is yes; you can sue anyone for anything at any time — it doesn’t mean you’ll win or that the case will go anywhere, but you can. On the other […]
Learn MoreGenerally, the only mention of bankruptcy in a franchise agreement for a franchisee in the state of Minnesota relates to what happens when a franchisee declares bankruptcy. This means that a franchise agreement often will not provide franchisees with any protection if their franchisor declares bankruptcy. Franchise bankruptcies are not always detrimental to franchisees, so […]
Learn MoreIf you are a franchisee or potential franchisee in California, you may have rights not available to individuals in other states. This is because California has two comprehensive laws regulating franchising: the California Franchise Investment Law and the California Franchise Relations Act. Together, these California franchise requirements serve to protect franchisees during every stage of […]
Learn MoreMany franchisees purchase a particular franchise because they believe that the people working at the franchisor’s office and the franchise system’s founders are “good people,” and have a “family feel” in how they run the business. The problem, however, is that franchisors, like any other business, may be bought and sold. For example, the jovial […]
Learn MoreLet’s take a look at some advertising language that franchisors use to entice potential franchise buyers. After all, these advertisements are often the sole reason a prospective franchisee reaches out to a franchisor in the first place. “Own your own business by owning a franchise.” “We want to share our successful franchise opportunity with a […]
Learn MoreFranchisees that contact us frequently ask if they can close the franchise and continue operating an independent business in the same industry. The short answer in the majority of cases is, unfortunately, “no.” But with good advice from a franchise lawyer, a franchisee may be able to avoid the non-competition agreement. Many franchisees do not […]
Learn MoreAlmost every franchise agreement states that the franchisor has “proprietary”, “confidential” or “trade secret” information. In fact, many franchises are built upon the idea that it is the franchisor’s secret “special sauce” that is the key to franchisees’ success. Many franchisees, however, discover that after they buy the franchise, there is nothing particularly special about […]
Learn MoreOn behalf of Garner, Ginsburg & Johnsen, P.A. on Monday, July 25, 2016. As franchisee lawyers, we see a lot of bad franchisors. Most of these bad franchisors work on what we call the “North Korean Model.” That means what it says – the franchisor is the dictator, and the franchisees have no rights. There […]
Learn MoreOn behalf of Garner, Ginsburg & Johnsen, P.A. on Tuesday, July 12, 2016. Franchise agreements usually contain provisions that prohibit the franchisee from competing in the same business for a period of time after the termination of the franchise. The purpose of these “covenants not to compete” is to prevent franchisees from closing up business […]
Learn MoreOn behalf of Garner, Ginsburg & Johnsen, P.A. on Friday, July 1, 2016. Many of you franchisees ask us if franchisors can treat franchisees differently. The question comes in various forms: My franchisor isn’t collecting royalties from some other franchisees. So why do I have to pay? A number of franchisees in our system left […]
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