Franchise Fraud: What if Your Franchisor Isn’t Telling You the Truth?
Aug 31, 2026 - Blog by Goldstein Law Firm |If you have been misled by your franchisor, you could have a claim for fraud. In this scenario, it will be critical to ensure you make informed decisions, and you will want to promptly discuss your legal options with an experienced franchise attorney. Jeffrey M. Goldstein, founding attorney of Goldstein Law Firm, represents franchisees nationwide.
5 Red Flags for Prospective Franchisees
Aug 24, 2026 - Blog by Goldstein Law Firm |As a prospective franchisee, there are lots of red flags to be aware of during the due diligence process. These include incomplete FDD disclosures, evasiveness from the franchisor’s representatives, and franchisees who are hesitant to talk about their experience, among others. By working with an experienced franchisee attorney during your due diligence, you can spot these red flags before you make an uninformed buying decision.
Evaluating the Item 7 “Estimates” in a Franchisor’s FDD
Aug 17, 2026 - Blog by Goldstein Law Firm |Franchisors are supposed to disclose the “estimated initial investment” required to open for business in Item 7 of the Franchise Disclosure Document (FDD). But franchisors’ estimates aren’t always as accurate as they should be, and prospective franchisees can receive a very misleading picture of how much it costs to open in some cases. This makes it critical for prospective franchisees to independently verify their startup costs during the due diligence process.
Is “Semi-Passive” Franchise Ownership Right for You?
Jul 31, 2026 - Blog by Goldstein Law Firm |“Semi-passive” franchise ownership has become an increasingly popular goal in recent years. Semi-passive owners, or “executive franchisees,” make high-level decisions but do not personally manage their franchise’s day-to-day operations. While semi-passive franchise ownership offers flexibility and time for other endeavors, pursuing this option requires careful consideration. As a result, prospective franchisees who are considering semi-passive ownership should consult with an experienced franchisee attorney who can help them make informed decisions.
Protecting Your Territory as a Franchisee
Jul 24, 2026 - Blog by Goldstein Law Firm |As a franchisee, your territory is among the most valuable aspects of your franchise. As a result, protecting your territory is extremely important. If your franchisor or another franchisee is encroaching on your protected or exclusive territory, you should consult with an experienced franchise attorney about your legal options promptly.
When Is It Time to Talk to a Franchise Lawyer About a Dispute with Your Franchisor?
Jul 17, 2026 - Blog by Goldstein Law Firm |Facing a dispute with your franchisor can put you in a difficult position. On the one hand, it is important to stand up for your rights as a franchisee. On the other, you have your relationship with your franchisor to consider, and there are costs involved in taking (or defending against) legal action. With this in mind, it is best to speak with a franchise lawyer sooner rather than later.
Franchisee Sales: Cashing Out on Your Franchise Investment
Jun 26, 2026 - Blog by Goldstein Law Firm |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.
Is Franchising Really Making “Countless Americans Rich?”
Jun 19, 2026 - Blog by Goldstein Law Firm |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.
What Do Experienced Franchisees Wish They Knew Sooner?
Jun 12, 2026 - Blog by Goldstein Law Firm |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.
How Can Franchisees Use AI During the Due Diligence Process?
May 29, 2026 - Blog by Goldstein Law Firm |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).
