If you are thinking about buying a franchise, you need to be sure to avoid costly mistakes. While buying a franchise can be a good investment, franchises can—and do—fail. Ultimately, it is up to you to decide what you want to do; and, while this can be daunting, there are clear steps you can take to help maximize your chances of success. Here are some tips from national franchise attorney Jeffrey M. Goldstein.

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Like many states, Pennsylvania has not enacted a franchise law that protects franchisees. If you are thinking about buying a franchise in the Commonwealth, what does this mean for you? Pennsylvania franchise lawyer Jeffrey M. Goldstein explains.

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On July 12, 2024, The FTC and its Staff undertook four semi-permanent measures in support of franchisees. These actions were announced by the FTC in its July 12, 2024, press release (“Press Release”). This article discusses the first of these – the FTC’s Policy Statement on Franchisors’ Use of Contract Provisions, Including Non-Disparagement, Goodwill, and Confidentiality Clauses. Introduction – The Four Actions Announced in the Press Release The FTC’s Press Release initially states that the FTC was carrying out its current actions “to address a growing concern about unfair and deceptive practices by franchisors” and to “ensure that the franchise business model remains a ladder of opportunity to owning a business for honest small business owners.” Clearly, the FTC believes that the franchise industry was intended to be an effective method of creating a strong small business sector. Implicit in this view is that the franchise model, when run ‘fairly,’ can achieve and has achieved this societal goal. Second, and relatedly, the FTC also appears to believe that at present the franchise model is under attack through “unfair and deceptive practices” by franchisors. It has taken too many years for the FTC to arrive at this conclusion. The first action identified by the FTC was a “Policy Statement” warning franchisors that contract provisions including non-disparagement clauses that prohibit franchisees’ communications with the government violate the law. The FTC appeared especially angered by such contracts in that they allegedly undercut the FTC’s investigatory functions to protect franchisees. In the Press Release, […]

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When you are buying a franchise, there are people who want to help you, and there are people who can offer the help you really need. It is important to be able to distinguish between the two—not only to avoid wasting money that would be better invested elsewhere, but also to ensure that you are making an informed buying decision. While distinguishing between franchise brokers, franchise consultants and franchise lawyers is confusing for many prospective franchisees, there are clear (and important) differences between them. Here’s what you need to know.

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