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.
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.
Are These Franchise Industries Poised for Post-Pandemic Success?
Apr 23, 2021 - Blog by Goldstein Law Firm |It is no secret that the economic impacts of the COVID-19 pandemic have hit franchising particularly hard. Many franchises who were already struggling to turn a profit while paying their royalties and marketing fund contributions saw their revenue drop substantially, and many went out of business as a result. Among those who survived, long-term outlooks vary, and a significant amount of uncertainty remains.
FranConnect Data Show Economic Impacts of COVID-19 on Franchising
Apr 16, 2021 - Blog by Goldstein Law Firm |FranConnect, a well-known franchise management software provider, recently released a report detailing the economic impacts of the COVID-19 pandemic on the franchise industry. The report is available for download, and the International Franchise Association (IFA) has summarized some notable data from the report on its website. Here, franchise attorney Jeffrey M. Goldstein shares his thoughts on some of the key figures and what they might mean for current and prospective franchisees.
3 Important Legal Considerations for Buying a Kid-Focused Franchise
Apr 9, 2021 - Blog by Goldstein Law Firm |A recent article in the Franchise Times highlights some kid-focused franchises that are “tap[ping] into youth activity demand” during the COVID-19 pandemic. The article discusses how the impacts of the pandemic on children have resulted in an increased demand among parents for organized, educational, enriching and fun activities outside of school. If you are thinking about buying a kid-focused franchise, here are three important legal considerations to keep in mind from franchisee lawyer Jeffrey M. Goldstein:
