Monthly Archives: April 2021
Unfairness in the franchise relationship is among the key factors that lead to franchisee failures. Without the information, support and legal protections they need, franchisees can struggle to earn a reasonable profit, and they can face substantial losses when their franchises fail. A recent congressional report discusses potential solutions to the current unfairness in franchising—including what franchisors, federal regulators and state authorities can do to help protect franchisees. Here, franchise lawyer Jeffrey M. Goldstein summarizes some of the most notable recommendations from the report:
In April 2021, the Office of Nevada Senator Catherine Cortez Masto released a report titled, Strategies to Improve the Franchise Model: Preventing Unfair and Deceptive Franchise Practices. The report provides a detailed look at the current state of franchise regulation in the United States and offers suggestions for what state and federal authorities can do to improve protections for franchisees.
It is no secret that the economic impacts of the COVID-19 pandemic have hit franchising particularly hard. Many franchises who were already struggling to turn a profit while paying their royalties and marketing fund contributions saw their revenue drop substantially, and many went out of business as a result. Among those who survived, long-term outlooks vary, and a significant amount of uncertainty remains.
FranConnect, a well-known franchise management software provider, recently released a report detailing the economic impacts of the COVID-19 pandemic on the franchise industry. The report is available for download, and the International Franchise Association (IFA) has summarized some notable data from the report on its website. Here, franchise attorney Jeffrey M. Goldstein shares his thoughts on some of the key figures and what they might mean for current and prospective franchisees.
A recent article in the Franchise Times highlights some kid-focused franchises that are “tap[ping] into youth activity demand” during the COVID-19 pandemic. The article discusses how the impacts of the pandemic on children have resulted in an increased demand among parents for organized, educational, enriching and fun activities outside of school. If you are thinking about buying a kid-focused franchise, here are three important legal considerations to keep in mind from franchisee lawyer Jeffrey M. Goldstein:
Living with the effects of the COVID-19 pandemic has conditioned many people to do things from home. From working to shopping to watching newly-released movies, many Americans have fully adjusted to doing everything from the comfort of their couch or dining table. As a result, many retail businesses are still struggling as restrictions begin to lift, and this includes fast-casual and sit-down restaurants.