Monthly Archives: March 2022
In recent years, many franchisors have turned to celebrity endorsements to boost their brands’ presence on social media. While this increased exposure is ostensibly good for franchisees, franchisees may or may not want to be associated with certain celebrities for various reasons. This is especially true when the celebrities their franchisors choose are controversial—as discussed in a recent Franchise Times article. Let’s say your franchisor has signed a celebrity endorsement deal, and let’s say you aren’t interested in using the celebrity’s image or selling the celebrity’s signature merchandise. Do you have a choice? National franchise attorney Jeffrey M. Goldstein explains.
According to the Franchise Times, Planet Fitness recently signed an agreement to acquire 114 gyms from one of its largest franchisees. The purchase price? A reported $800 million. While this deal is notable for its scope and dollar value, franchisors buy franchised outlets all the time. If you are interested in selling your franchise to your franchisor, here are some important considerations from franchisee lawyer Jeffrey M. Goldstein.
With dozens of pages and tens of thousands of words, franchise agreements are long, complicated and difficult to read. But, when buying a franchise, understanding the terms of your franchise agreement is extremely important, and there are three little words that could drastically increase the risks of moving forward. These words are “lost future royalties.”
The franchise industry is booming. There are more franchisors than ever before, and various sources indicate that there are currently well over 750,000 franchised outlets in the United States. So, why is this the case? Why do so many people choose to buy a franchise instead of starting an independent business? National franchisee lawyer Jeffrey M. Goldstein shares his thoughts.
Franchise agreements contain lots of “boilerplate” terms—or at least it seems that way. Once you get past the royalty fees, territory provisions and renewal rights, most franchise agreements look more or less the same. Even so, these “boilerplate” terms are extremely important. If your franchise lawyer overlooks them, you could end up unknowingly agreeing to some heavily one-sided provisions.
As a franchisee with a protected territory, you expect your franchisor to respect your territorial rights. After all, your franchisor granted them to you in the first place (unless you live in one of the limited numbers of states that provide statutory territorial protections to franchisees). But, what if it doesn’t? What if your franchisor encroaches on your protected territory? Franchise attorney Jeffrey M. Goldstein explains.