Monthly Archives: May 2021
Buying a franchise is a long-term investment. Generally speaking, franchisees need to prepare themselves to be in it for the long haul. But, things happen, and there are a variety of reasons why someone might want to exit a franchise prior to the date of expiration. In this article, franchise lawyer Jeffrey M. Goldstein discusses four potential options for getting out of a franchise agreement.
When buying a franchise, it is important to review the franchise disclosure document (FDD) in its entirety. Each of the FDD’s 23 “Items” contain information that is relevant to prospective franchisees’ buying decisions. But, as with most legal documents, certain provisions are potentially more impactful than others, and franchise buyers will want to pay particular attention to these provisions during their due diligence. In this article, franchisee attorney Jeffrey M. Goldstein highlights seven “can’t miss” provisions of the FDD.
Firm founder and nationally-recognized franchise attorney Jeffrey M. Goldstein has been named to the 2021 Franchise Times Legal Eagles. As the publication explains, the Legal Eagles is a “list of star legal professionals in the franchise industry . . . built with nominations and recommendations from clients, peers and other legal professionals.”
We discussed the virtual restaurant trend a couple of months ago. In that article, we explored the link between the virtual restaurant trend and the COVID-19 pandemic, and we noted that many new franchise concepts were popping up—apparently in direct response to the rising consumer demand for takeaway and delivery restaurant-quality meals. Now, as national franchisee lawyer Jeffrey M. Goldstein notes, some big brands are stepping into the virtual restaurant franchise realm.
Item 20 of the Franchise Disclosure Document (FDD) provides an overview of the status of a franchise system. Its tables disclose the number of active franchises, terminations, non-renewals and closures over the past three years, as well as the number of franchisees who have signed agreements but not yet opened and the franchisor’s projections for the upcoming year. These are all valuable pieces of information, and they allow prospective franchisees to gain some important insights with the help of an experienced franchise lawyer.
Franchises come in all shapes and sizes. While some franchises require franchisees to invest in a retail location and hire multiple employees, others allow franchisees to act as owner-operators. These franchisees not only manage their businesses, but they also run their businesses on the ground. Known as owner-operators, these franchisees do almost everything on their own—from ordering and managing inventory and supplies to conducting sales and providing services to customers.