Recent Posts in Franchise

  • 23-Sep-2016

    Arby's Buys 19 Small Franchisees

    When other restaurants are selling locations to franchisees, Arby’s is doing the opposite. Just recently, the sandwich company announced a deal to buy 19 locations in Knoxville, TN. Though the terms of the deal were not disclosed, Arby’s ...
  • 9-Sep-2016

    Could Chipotle Change Their Mind About Franchising?

    Almost a year ago, we published a blog called “Why Chipotle Refuses to Franchise,” in which we shared the benefits the Chipotle business would be missing out on because, as their spokesperson Chris Arnold put it, “they didn’t ...
  • 4-Jan-2016

    What Is the Purpose of a Royalty Fee?

    Understand that every franchise will carry some initial start-up cost. The money may either go toward the franchisor, but the costs may also include the amount of money necessary to begin the business. This includes utility bills, rent on the unit or ...
  • 21-Dec-2015

    What Are Franchise Disclosure Documents?

    The Franchise Disclosure Document (FDD) can make or break a potential franchise. The Federal Trade Commission requires each franchisor to provide the FDD at least 14 days before the franchise agreement can be signed. Full disclosure is necessary, as ...
  • 1-Dec-2015

    Franchisee Benefits of California's New Franchise Law

    Last month, Governor Jerry Brown (D-CA) signed California bill AB-525 into law, offering franchises throughout the state extra protections when purchasing, transferring and terminating their franchise agreement. Effective for franchise agreements ...
  • 27-Oct-2015

    Why Chipotle Refuses to Franchise

    Franchising fast food chains has proven to be a fairly lucrative endeavor. The brand is already established, and so franchisees do not need to rely on self-marketing. These businesses also anticipate rapid growth, as the costs of building, opening, ...
  • 13-Oct-2015

    Los Angeles County and Time Warner Cable Lawsuit

    Los Angeles County sued Time Warner Cable in federal court, claiming the cable company owes the city nearly $700, 000. The county is alleging that Time Warner Cable has violated the law by not paying its PEG fees from approximately 2007 to 2011. What ...
  • 16-Sep-2015

    7 Common Franchisee Mistakes

    Purchasing a franchise is an exciting opportunity that can lead to financial success — as long as you go about it the right way! If you avoid a few common pitfalls, you may have a better chance of making the right investment and growing your ...
  • 2-Sep-2015

    NLRB Ruling Allows Franchisors to Be Considered "Joint Employers"

    A recent ruling by the National Labor Relations Board (NLRB) could mean major changes to how franchises operate in the future. As reported in The Business Journals, the NLRB ruled on Aug. 27 that a company can be considered a “joint ...
  • 19-Aug-2015

    Del Taco Franchise to Open in Tennessee

    Here in Los Angeles, two things are taken as fact—that the 405 freeway will be jam packed at 5:00 p.m., and if you want a full meal for less than a gallon of gas, you can’t beat Del Taco. Within the next year, this California-based chain ...
  • 5-Aug-2015

    Steak 'n Shake Franchise Owners Lose Case

    In a case which has been ongoing since 2013, the owners of several Colorado Steak ‘n Shake franchises lost a lawsuit filed by the compay of the restraurant. In the case, the company had alleged that the franchisees in question had intentionally ...
  • 15-Jul-2015

    Franchise Bill Steaming Ahead

    AB 525 is well on its way to providing more protections to franchisees. The IFA and pro-franchisee groups came to an agreement on some late amendments, which will see the IFA drop opposition. Please read the Article by Johathan Maze HERE.
  • 28-May-2015

    Millennials and Franchising

    An interesting take on why new generations coming into the workforce are finding franchising attractive. Read the article here.
  • 16-Apr-2015

    Types of Franchise Arrangements

    Franchise Agreement This is the center of every franchise arrangement. A franchise agreements grants franchisees the right, for a fee, to operate a single franchised business, in accordance to the terms as set forth in the agreement. Every franchised ...
  • 20-Mar-2015

    Seattle Leading the Pack in Wage Increases

    $15 dollars an hour is here and spreading, an article on Blue Mau Mau gives a bit of insight on how the Seattle courst view the impact to franchisees. How will these increases impact your business? Is it time to revisit royalty structures and ...
  • 24-Feb-2015

    Area Representatives and Developers, an Outline of Issues

    This article found on Blue Mau Mau; penned by Keith Kanouse, lays out the difference between a developer and representative, as well as some of the legal issues surrounding them. In addition to the typical purchase of a single-unit franchise, there ...
  • 22-Jan-2015

    Set the Tone

    Franchise laws vary from State to State, some such as California offer precise and clear protections, and others relegate it to FTC disclosure guidelines. One thing is clear, disputes will arise, and for the most part franchise laws don't address ...
  • 18-Nov-2014

    Mediation Outside the Box

    Recently I took on the representation of a franchisee in a very small food service system. My initial interview exposed some unique features of my client's franchise; He was one of only a few franchisees, and his franchisor was his brother. I ...
  • 28-Oct-2014

    Disturbing Figures in Franchisee Turn Over Rate

    It is a disturbing trend of exodus in franchise systems, that may stem from a variety of reasons, but one thing is clear, upfront analysis and examination of the franchise and the system you are buying into is a necessity. Long gone are the days of ...
  • 30-Sep-2014

    SB 610 Shot Down by Governor Brown

    We had the opportunity to advance legislation to provide franchisees with a bit more piece of mind, and Governor Brown vetoed it, until he had a more conclusive showing 610's revisions were addressing a real issue of concern in the franchise ...
  • 11-Sep-2014

    Franchise Brands With High Default Rates

    I am always asked about franchise brands and how they are viewed from the "dispute" perspective, or business satisfaction of other clients. The article by Sarah Needleman and Coulter Jones is interesting, since it provides some hard facts ...
  • 4-Sep-2014

    Can the Car You Drive, Make a Career

    I am a car guy, love them, not for what they say about me, but for the beauty and performance they embody. On the other hand, I am cognizant of what I drive and when I drive it, especially since I live in Los Angeles, the car capitol of the world. ...
  • 27-Aug-2014

    The Negotiation Campaign

    Jeff Krivis presents an interesting way to view and plan a negotiation strategy. In his article " The Negotiation Campaign " he views negotiations like a political race with certain steps and moves all focusing on the intended outcome. He ...
  • 19-Aug-2014

    NYPD Hostage Negotiator Qualifications and Mediation

    In Jeff Thompson and Hugh McGowan's article detailing the requirements of an NYPD hostage negotiator, I found the similarities to a well seasoned mediator very interesting. Once aspect of thier requirements that I have adopted in my own mediation ...
  • 12-Aug-2014

    Discounting with a Purpose

    Discounting has been seen by some retailers as a never ending cycle, with lessening returns. Nikki Baird, in her article " Sympathy for the Discount Devil " explores how discounting with a social purpose can be hughly effective, and yet ...
  • 29-Jul-2014
  • 29-Jul-2014

    Franchise Hiring Accelerates

    Franchising, like any other business, is in need of qualified employees. June's numbers show the amount of jobs provided for in different sectors of franchising, and many will find the trends interesting, especially if they are experiencing ...
  • 16-Jul-2014

    Mediation and Franchising, A Necessary Tool

    As a franchise attorney, prior to my training in dispute resolution, I didn't consider using mediation as an initial or primary resolution tool. I typically found the background necessary in franchising was lacking on the part of the mediator, ...
  • 9-Jul-2014

    The Path to Successful Negotiations

    Negotiations are structured by the Issues presented, the Positions of the parties and the Interests needing to be satisfied to reach a conclusion. Focusing on Interests, instead of Positions, will open up a range of solutions, not necessarily ...
  • 25-Jun-2014

    California Franchisee Protection Bill

    SB 610 is in the final stages of ushering in more protections for franchisees. Robert Purvin of the AAFD appeared in front of the legislature yesterday to lobby for it's passage, with the IFA squarely opposed. The bill passed. Here are two ...
  • 17-Jun-2014

    Preparing for the David and Goliath Negotiation

    Many of my clients and franchisee parties to mediations have a concern that they are on the weaker side of the negotiation power base, when they are up against a franchisor. Although I review with them the synergy of the franchise relationship, that ...
  • 3-Jun-2014

    Freedom to Express Discontent

    The relationship between franchisees and franchisors can be contentious at times. With today's instant access to a worldwide audience, the resolution of conflict, before escalation, is imperative for the franchised owner, the system and the ...
  • 29-May-2014

    Employers and Employees at Odds Over Employment

    I just read an article " Applicants, bosses trade blame over failures to fill job openings " , by Joyce Rosenberg, in the Detroit News, detailing the frustration by both employers and candidates in their pursuit to fill positions. This ...
  • 20-May-2014

    Review Agreements with an Eye Towards Future Events

    I am continually reviewing real estate control documents, in connection with franchised businesses, where a franchisor requires some assurance that if your franchise rights are terminated or expire, they will be able to maintain control of your ...
  • 13-May-2014

    "Pro-Franchisee" the New Catch Phrase

    Lately the phrase "pro-franchisee" has been bantered about a lot regarding legislative attempts to add more franchisee protections. Pro Franchisee Legislation Faces Some Tough Opposition, Posted by Ed Teixeira, gives a brief summary on why ...
  • 5-May-2014

    10 Things Judges can do to Help Business Litigation.

    After reading Patrick Lamb's article: 10 things judges can do to help business litigation be more efficient and less expensive, I can only hope litigators see the need for alternative dispute resolution in their practices. The article details ...
  • 29-Apr-2014

    The Benefit of Mediation Prior to Litigation

    Mediation is not just for the resolution of litigation. I spend a fair amount of my practice mediating disputes that never see the notoriety of a lawsuit. The reason for this is many franchisees as well as franchisors understand that a festering ...
  • 23-Apr-2014

    Franchise Systems Out of Control

    Trademarks are the bedrock of a franchise system. They build consumer loyalty, and are the guiding light for the franchise system. A trademark provides a symbol of expectation for the consuming public, building the brand and consumer confidence. ...
  • 15-Apr-2014

    Reflect Often; Identify and Address Concerns Early

    My initial review of a franchise opportunity is very detailed. Insuring my clients understand their rights, the obligations of both the franchisee and franchisor, the history and information provided in the FDD and a legal review of any registrations ...
  • 8-Apr-2014

    Two Franchise Protection Bills, Defeated

    "I don't care if we are talking about drugs, prostitution or franchising. We should not get involved with contracts between two consenting adults." Maine’s state representative Aaron Libby (R-Waterloo). In recent weeks both the ...
  • 1-Apr-2014

    Franchisee Associations Proliferate During Conflict

    The Wall Street Journal ran an article yesterday by Sarah Needleham entitled "Tough Times for Franchising" It details two franchised operations in strife with their franchisors, and how litigation has ensued. As an attorney representing ...
  • 25-Mar-2014

    Don't Get Mad, Mediate

    Mediation in franchising is catching on as a tool to resolve tensions, maintain the relationship and move past resentment prior to the threat of, or institution of legal action. Franchising is a relationship-oriented business, not just the boots on ...
  • 18-Mar-2014

    Stages of the Franchise Relationship

    I recently sat on a panel to discuss disputes in franchising and when they may arise. I have for years analogized the franchise relationship to the stages of marriage; starting with the pre-marital courtship, the marriage and at times divorce. Given ...
  • 11-Mar-2014

    Does Your Franchisor Monitor Social Media?

    I recently read an article on a very hot topic, written by Frances Leary, President of Wired Flare, and posted on franchisegrade.com, the article discusses Frances' conversation with a franchisor that beleives a hands off approach to the social ...
  • 4-Mar-2014

    Maybe the Model is Broken

    I have a client who came to me after buying into a well known franchised business, at a bargain basement price, and was having struggles in keeping the doors open a year and a half later. The franchisor was not a horrible company, in fact just the ...
  • 24-Feb-2014

    Key Features of Franchisee Associations

    I have represented many franchisee associations over the years, and have had a chance to observe and be a part of many that provided true value to its members, and unfortunately a few that fell short. I'm asked by franchisees quite frequently ...
  • 19-Feb-2014

    Think Outside the Box

    I just finished a mediation that was a classic example of how focusing on interests, instead of positions created an opportunity to settle, where one may not have seemed to exist. A mediator or someone in the midst of negotiations must assess the ...
  • 11-Feb-2014

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