Author Jeffrey M. Goldstein Introduction The Balance of Power in Franchising examines more than 33,000 Franchise Disclosure Documents covering 4,371 franchise systems between 2009 and 2023 to measure how authority and decision-making power are distributed between franchisors and franchisees. Ulrich Atz, Blake Eliason, Peter Norlander, Sérgio Pinto & Marshall Steinbaum, The Balance of Power in Franchising (Dec. 3, 2024). The authors find that franchisee autonomy generally declined over the study period, while franchisors expanded their control over important aspects of the business relationship, including territory, pricing, products, suppliers, information sharing, dispute resolution, and post-term restrictions. One of the paper’s most significant findings is the sharp decline in exclusive territorial protections and the corresponding rise in contractual provisions allowing franchisors to compete within a franchisee’s market. The study argues that economic power should be understood not only as market power or concentration, but also as the ability to make business-relevant decisions on behalf of others, making authority itself an important object of empirical study. Across numerous contractual provisions, the authors find increasing use of restraints that limit franchisee discretion, including exclusive supply requirements, full-line forcing, pricing controls, and restrictions on business conduct. Survey evidence further suggests that many franchisees perceive themselves as having more autonomy than their contracts actually provide, indicating a gap between contractual reality and franchisee understanding. The paper also rejects the argument that franchisees are compensated for surrendering autonomy, finding that greater franchisor control tends to be associated with higher franchise fees rather than lower ones. Ultimately, the […]

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Franchisees who are interested in cashing out must strictly comply with their franchise agreements both before and during the transfer process. Franchise agreements often include several conditions on transfer, including securing the franchisor’s approval, paying a transfer fee, and complying with the franchisor’s right of first refusal.

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ABSTRACT In PJC Management Group, LLC v. MAACO Franchisor SPV LLC, 2026 NCBC 37 (N.C. Super. Ct. Apr. 22, 2026), the North Carolina Business Court partially granted and partially denied a motion to dismiss filed by MAACO and its parent companies in a franchise dispute. The court allowed franchisees’ breach of contract claims against MAACO to proceed based on allegations that MAACO misappropriated advertising fees and failed to provide required financial statements. However, the court dismissed claims against MAACO’s parent companies for insufficient pleading, dismissed the unfair trade practices claim with prejudice for failing to allege aggravating circumstances beyond breach of contract, and dismissed the accounting claim without prejudice as it is a remedy rather than an independent cause of action. The decision clarifies the standards for pleading franchise disputes in North Carolina and the limitations on converting contract breaches into statutory violations. CASE IDENTIFICATION AND PARTIES This case is PJC Management Group, LLC v. MAACO Franchisor SPV LLC, 2026 NCBC 37, decided by the North Carolina Superior Court, Mecklenburg County, Business Court on April 22, 2026. The plaintiffs and franchisees are PJC Management Group, LLC (a North Carolina limited liability company), Phillip J. Collins, J&A Companies Inc. (a Nevada corporation), PVA Capital LLC (a Virginia limited liability company), Shore Capital, LLC (a Virginia limited liability company), LEWVIA Inc. (a Texas corporation), Hollas Enterprises, LLC (a Texas limited liability company), MFinch & WPerry Solutions, Inc. (a Georgia corporation), William Perry, and Michael Finch. The defendants include MAACO Franchisor SPV LLC […]

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While owning a franchise can be profitable, it is debatable that franchise ownership has made “countless Americans rich,” as claimed in a recent article published by The Economist. This also ignores data suggesting that the average single-unit franchise owner earns less than $100,000 annually, and that for new owners, the average is closer to $50,000. Additionally, around one in ten franchises fail completely within the first two years.

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Many experienced franchisees say they wish they had known more about the unique challenges of franchise ownership before moving forward. Not having a clear understanding of the costs involved is a common lament as well. Some also say they expected to take a more hands-off approach than their franchises ultimately required.

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Last month, we published an article outlining seven reasons franchisees should be cautious about using artificial intelligence (AI) when researching franchise opportunities. In that article, franchise attorney Jeffrey M. Goldstein highlighted some of the key pitfalls of using AI for research purposes, particularly when researching anything with significant financial or legal implications (or both).

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You received a franchise termination notice. Maybe it was expected, or maybe it wasn’t—but now you are facing a high-risk situation that you never expected when you signed your franchise agreement. In this situation, what can (and should) you do? Equally important, what should you avoid doing, and what (if anything) can a franchise lawyer do to help?

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Franchise attorney Jeffrey M. Goldstein, founder of Goldstein Law Firm, has once again been named to the Franchise Times’ list of U.S. Legal Eagles. Published annually, the U.S. Legal Eagles list highlights the nation’s “top franchise attorneys,” as selected through the publication’s formal nomination process.

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While it is becoming increasingly common to use ChatGPT, Gemini, Perplexity, and other artificial intelligence (AI) platforms to conduct research rather than searching online, this approach poses several risks. This is especially true for prospective franchisees. As a prospective franchisee, it is critical to do your due diligence, and there are multiple issues with AI that make it unfit for this purpose. Keep reading to learn more from franchisee lawyer Jeffrey M. Goldstein.

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Most franchise agreements include provisions requiring franchisees to pursue mediation or arbitration (or both) rather than taking their franchisors to court. As a franchisee, understanding your legal options is important. So, if you need to hold your franchisor accountable, what do you need to know? Here are some key insights from national franchise lawyer Jeffrey M. Goldstein.

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