How Can Franchisees Use AI During the Due Diligence Process?

May 29, 2026 - Blog by |

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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Goodwill, Relational Governance, and Deterrence in Franchising and Dealer Channels: Integrated Theory, Explanations, and ROC Guide

May 1, 2026 - Blog by |

Franchise networks and dealer networks both achieve scale by separating ownership from brand control and by distributing execution across many local businesses. Because the agreements that govern these networks cannot anticipate every future contingency and because both sides invest in assets that are highly specific to the relationship, the same disputes recur: territorial encroachment that is increasingly driven by centralized e‑commerce and delivery applications; disagreements over national advertising funds or cooperative marketing funds; frictions over vendor and parts rebates; price, termination, and renewal conflicts; and, in dealer systems in particular, disagreements over warranty reimbursement and the permissibility of direct‑to‑consumer sales models. These outcomes are not random or idiosyncratic. They are the predictable result of incomplete contracting, relationship‑specific investments, and multi‑dimensional performance that is difficult for a court to verify after the fact. A microeconomic governance lens—combining Transaction‑Cost Economics (TCE), which explains why parties choose particular governance structures, with the logic of relational contracts, which explains how repeated dealings can support credible informal promises, and a practical deterrence program—turns these ‘never‑ending problems’ into design choices about information, remedies, and the value of the future. Summary The purpose of this paper is to provide a practical governance playbook for both franchising systems (franchisors and franchisees) and dealer systems (manufacturers and dealers). The playbook is grounded in TCE, in the economics of relational contracts, and in a straightforward deterrence framework that rests on three pillars: better signals, verifiable sanctions, and a credible future. The aim is to reduce wrongdoing, litigation, and distrust by […]

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Why Franchisees Need to Be Cautious About AI When Researching Franchise Opportunities

Apr 23, 2026 - Blog by |

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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Franchise Arbitration vs. Mediation: Understanding the Benefits and Drawbacks of Each for Franchisees

Apr 16, 2026 - Blog by |

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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The Value of Franchising: 7 Insights from the IFA’s 2026 Report

Mar 27, 2026 - Blog by |

The International Franchise Association (IFA) recently published a report titled, The Value of Franchising. As the IFA explains, the report reflects the results of a survey of nearly 3,000 franchisees as well as an “economic analysis comparing franchises with non-franchise businesses” conducted by Oxford Economics. Here, national franchisee attorney Jeffrey M. Goldstein shares his thoughts on the report’s conclusions.

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Are You Considering a “Top 10” Franchise Brand? Here’s What to Know

Mar 20, 2026 - Blog by |

The Franchise Times recently released its list of the “10 Top Brands to Buy” in 2026 as part of its annual Zor Awards. Several publications release these types of lists, and, as a prospective franchisee, it is important to make informed decisions about how much weight, if any, to give to a franchisor’s inclusion on (or exclusion from) any particular list of the “top” or “best” franchise brands. Keep reading for some important insights from national franchise attorney Jeffrey M. Goldstein.

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Experiential Franchises: 5 Key Considerations for Prospective Franchisees

Mar 13, 2026 - Blog by |

Experiential franchises have seen a surge in popularity in recent years. With many brands benefiting from a post-pandemic rebound and a growing desire to find ways to engage “IRL” that do not involve screen time, several franchises in this sector have reported strong sales and are actively recruiting new franchisees. Does this mean that now is a good time to buy? Here are some key considerations from national franchise lawyer Jeffrey M. Goldstein.

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What If My Franchisor Wants Me to Adopt AI?

Feb 27, 2026 - Blog by |

With artificial intelligence (AI) continuing to gain mainstream acceptance, franchisors are now using AI in various ways. In many cases, they require their franchisees to use AI as well. If your franchisor wants you to use AI, what do you need to know? National franchisee lawyer Jeffrey M. Goldstein explains.

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