What Can You Expect from Franchise Mediation?
Jun 9, 2021 - Blog by Goldstein Law Firm |Many franchise agreements include provisions for mandatory mediation. While mediation is intended to be neutral and provide an opportunity for the parties to resolve their dispute without going to court, the reality is that the requiring mediation benefits franchisors in many cases. So, as a franchisee, what can you expect in mediation? Franchise lawyer Jeffrey M. Goldstein explains:
What Qualifies as a Franchise Disclosure Violation?
Jun 2, 2021 - Blog by Goldstein Law Firm |Under the Federal Trade Commission (FTC) Franchise Rule and various state franchise laws, franchisors have a legal obligation to disclose certain information to prospective franchisees. While franchisees cannot pursue claims under the FTC Franchise Rule, they can pursue claims under state franchise laws in many cases. In this article, franchise attorney Jeffrey M. Goldstein explains what constitutes a franchise disclosure violation, and discusses the potential implications for disputes between franchisees and franchisors.
When Can You Get Out of a Franchise Agreement?
May 28, 2021 - Blog by Goldstein Law Firm |Buying a franchise is a long-term investment. Generally speaking, franchisees need to prepare themselves to be in it for the long haul. But, things happen, and there are a variety of reasons why someone might want to exit a franchise prior to the date of expiration. In this article, franchise lawyer Jeffrey M. Goldstein discusses four potential options for getting out of a franchise agreement.
7 “Can’t Miss” Provisions in the Franchise Disclosure Document (FDD) for Prospective Franchisees
May 26, 2021 - Blog by Goldstein Law Firm |When buying a franchise, it is important to review the franchise disclosure document (FDD) in its entirety. Each of the FDD’s 23 “Items” contain information that is relevant to prospective franchisees’ buying decisions. But, as with most legal documents, certain provisions are potentially more impactful than others, and franchise buyers will want to pay particular attention to these provisions during their due diligence. In this article, franchisee attorney Jeffrey M. Goldstein highlights seven “can’t miss” provisions of the FDD.
Firm Founder Jeffrey M. Goldstein Named to 2021 Franchise Times Legal Eagles
May 21, 2021 - Blog by Goldstein Law Firm |Firm founder and nationally-recognized franchise attorney Jeffrey M. Goldstein has been named to the 2021 Franchise Times Legal Eagles. As the publication explains, the Legal Eagles is a “list of star legal professionals in the franchise industry . . . built with nominations and recommendations from clients, peers and other legal professionals.”
Big Brands are Stepping Into the Virtual Restaurant Franchise Realm
May 19, 2021 - Blog by Goldstein Law Firm |We discussed the virtual restaurant trend a couple of months ago. In that article, we explored the link between the virtual restaurant trend and the COVID-19 pandemic, and we noted that many new franchise concepts were popping up—apparently in direct response to the rising consumer demand for takeaway and delivery restaurant-quality meals. Now, as national franchisee lawyer Jeffrey M. Goldstein notes, some big brands are stepping into the virtual restaurant franchise realm.
What Are the Key Takeaways from Item 20 of the FDD?
May 14, 2021 - Blog by Goldstein Law Firm |Item 20 of the Franchise Disclosure Document (FDD) provides an overview of the status of a franchise system. Its tables disclose the number of active franchises, terminations, non-renewals and closures over the past three years, as well as the number of franchisees who have signed agreements but not yet opened and the franchisor’s projections for the upcoming year. These are all valuable pieces of information, and they allow prospective franchisees to gain some important insights with the help of an experienced franchise lawyer.
Should You Buy an Owner-Operator Franchise?
May 12, 2021 - Blog by Goldstein Law Firm |Franchises come in all shapes and sizes. While some franchises require franchisees to invest in a retail location and hire multiple employees, others allow franchisees to act as owner-operators. These franchisees not only manage their businesses, but they also run their businesses on the ground. Known as owner-operators, these franchisees do almost everything on their own—from ordering and managing inventory and supplies to conducting sales and providing services to customers.
Building Fairness in Franchising: A Look Ahead to Possible Reform
Apr 30, 2021 - Blog by Goldstein Law Firm |Unfairness in the franchise relationship is among the key factors that lead to franchisee failures. Without the information, support and legal protections they need, franchisees can struggle to earn a reasonable profit, and they can face substantial losses when their franchises fail. A recent congressional report discusses potential solutions to the current unfairness in franchising—including what franchisors, federal regulators and state authorities can do to help protect franchisees. Here, franchise lawyer Jeffrey M. Goldstein summarizes some of the most notable recommendations from the report:
Four Factors that Lead to Franchise Failure: Congressional Report
Apr 28, 2021 - Blog by Goldstein Law Firm |In April 2021, the Office of Nevada Senator Catherine Cortez Masto released a report titled, Strategies to Improve the Franchise Model: Preventing Unfair and Deceptive Franchise Practices. The report provides a detailed look at the current state of franchise regulation in the United States and offers suggestions for what state and federal authorities can do to improve protections for franchisees.
