Franchise Articles

Abstract This article explains briefly and informally how a compact deterrence framework organizes conduct in franchising and analogous dealership channels. p·F ≥ G states that a deviation is unattractive when the expected penalty (probability times sanction) meets or exceeds the private gain, following Becker (1968). The analysis combines operational instrumentation, contractual fee architecture, and event‑triggered remedies into one explanatory model that travels cleanly between the outlet and the corporate center. Its practical value is less about punishment than about design: when evidence is a by‑product of normal operations and outcomes trigger on observable events, participants coordinate on compliance with fewer disputes. Although the literature often foregrounds franchisee non‑compliance, franchisor opportunism is under‑represented in published work and, in practice, is both more rampant and more difficult to detect and prove because it is embedded in policy decisions and paper processes. The article therefore places special weight on headquarters transparency and self‑executing remedies to restore symmetry in detectability and sanctions. By reframing familiar conflicts as tractable choices over gain (G), detection (p), and sanction (F), the framework converts diffuse debates into measurable decisions. Introduction This article offers a third‑party account of franchise behavior that uses an expected‑value inequality, rather than moral exhortation, to explain why deviations rise or fall. Actors compare the private gain from deviating G with the expected penalty p·F, and when the latter meets or exceeds the former, the shortcut no longer pays in expectation (Becker, 1968). While most case discussions dwell on unit‑level issues, many of the largest, […]

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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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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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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 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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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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As we do every year, we are seeing several new franchise concepts vying for prospective franchisees’ attention in 2026. These include social gaming and boutique fitness franchises, among others. If you are thinking about buying a franchise, should you consider a new concept in one of these trending industries? Here are some key considerations from national franchise lawyer Jeffrey M. Goldstein.

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The International Franchise Association (IFA) recently published its 2025 year-in-review. Titled, “2025: A Year That Redefined the Future of Franchising,” the report takes a (mostly) month-by-month look back at some of the IFA’s most notable activities over the past year. Here, franchise attorney Jeffrey M. Goldstein shares some of his thoughts on the IFA’s report, as well as some additional insights on the year that was.

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