Monthly Archives: February 2022

What Happens to Franchisees When Their Franchisor is Accused of Fraud?

Feb 28, 2022 - Blog by |

According to the Franchise Times, the CEO of the company that owns Fatburger, Johnny Rockets, Twin Peaks, Fazoli’s and other restaurant chains is under investigation by the U.S. Securities & Exchange Commission (SEC) for securities fraud and other crimes. At present, the SEC’s investigation remains ongoing, and no charges have been filed. However, the publicity surrounding the investigation (which has also been reported by the Los Angeles Times and other media outlets) is almost certainly having a negative impact on the company’s brands. So, what does this mean for these brands’ franchisees? National franchise lawyer Jeffrey M. Goldstein explains.

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FTC Sues Burgerim Alleging Franchise Fraud

Feb 25, 2022 - Blog by |

As recently reported by the Franchise Times, the U.S. Federal Trade Commission (FTC) has filed a lawsuit against Burgerim alleging franchise fraud. According to the publication, the FTC is, “accusing the fast-food chain and its owner, Oren Loni, of enticing more than 1,500 people to purchase franchises ‘using false promises while withholding information required by its Franchise Rule.’” This is a notable development in the world of franchising, as franchise attorney Jeffrey M. Goldstein explains.

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What Legal Information Should I Review Before Buying a Franchise?

Feb 23, 2022 - Blog by |

There are lots of legal aspects to franchise ownership. As a franchisee, you don’t need to be an expert in franchise law, but you do need to make sure you are relying on the advice of an experienced franchise lawyer. Without an in-depth understanding of the FTC Franchise Rule, your state’s franchise laws (if any), the terms of your franchise agreement and the case law surrounding franchising, you can easily overlook issues that present major risks for your franchise.

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Transitioning from Employee to Franchisee – Part 2: Choosing a Franchise Opportunity

Feb 16, 2022 - Blog by |

You are ready to make the transition from employee to franchisee, and you have determined that you have the financial wherewithal to move forward. Now the question is: Which franchise opportunity should you pursue? While many employees seek to buy into the brand they have served, as national franchisee lawyer Jeffrey M. Goldstein explains, employees should not default to this choice automatically.

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Transitioning from Employee to Franchisee – Part 1: What’s Your First Step?

Feb 11, 2022 - Blog by |

For many people, the desire to own a franchise stems from a desire to be their own boss. They’ve been an employee for years, perhaps decades, and they are ready to take control of an outlet of their own. If you are thinking about transitioning from employee to franchisee, what is your first step? National franchisee attorney Jeffrey M. Goldstein explains.

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