Franchise Articles

Colony Place S., Inc. v. Volvo Car USA, LLC, 2024 U.S. App. LEXIS 29681 By: Jeffrey M. Goldstein In a recent case decided by the United States Court of Appeals for the First Circuit, two Massachusetts Volvo automobile dealerships sued Volvo Car USA, Volvo Car Financial Services, and Fidelity Warranty Services for allegedly violating Massachusetts General Laws Chapter 93B. The claims related to Volvo-branded Prepaid Maintenance Program (PPM) contracts administered by Fidelity that allow customers to prepay for future routine maintenance at discounted rates. The alleged violations related to Volvo-branded Prepaid Maintenance Program contracts (“PPMs”) — a financial product allowing customers to pay up front at a discounted rate for future, routine maintenance services like oil changes at Volvo dealerships — that Fidelity administers and issues to Volvo dealers, who in turn sell the PPM contracts to their customers. The dealers argued they were being underpaid for servicing these contracts. The court disagreed, ruled against the dealers, holding that the “Dealers’ Bill of Rights” did not protect them. The alleged violations related to Volvo-branded Prepaid Maintenance Program contracts (“PPMs”) — a financial product allowing customers to pay up front at a discounted rate for future, routine maintenance services like oil changes at Volvo dealerships — that Fidelity administers and issues to Volvo dealers, who in turn sell the PPM contracts to their customers. The parties cross-moved for summary judgment. After hearing argument on the cross-motions, the district court granted the defendants-appellees’ motion and denied the plaintiffs-appellants’ motion, concluding that entities like Fidelity […]

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When living through uncertain economic times, everyone needs to do their best to make informed decisions based on the limited information they have available. But, this is especially important for prospective franchisees. Buying a franchise is a long-term investment, and if people can’t afford to buy what you have to sell, no amount of money or time will be enough to save your business. As a franchisee lawyer with well over 30 years of experience, this is a fact that Jeffrey M. Goldstein knows all too well.

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A recent article in the Franchise Times discusses the “gold rush” to get in on the pickleball craze. It cites figures from FranData that show an 85.7 percent year-over-year increase in pickleball players and notes that while “[t]he race to the top in the rapidly growing pickleball space heated up in 2024 for franchisors looking to capitalize on the country’s fastest-growing participation sport. . . . [p]ickelball franchisors and their financial backers agree there is plenty of space in the industry for everyone to grow and prosper even as they compete for prime real estate locations and franchisees work to draw players to their courts.”

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With a new year just around the corner, now is a time when many people are thinking about making some significant changes in their lives. For some, this means considering a franchise opportunity. If you are thinking about buying a franchise in 2025, what do you need to know? Keep reading to learn about some key legal, financial, and practical considerations from New York franchise lawyer Jeffrey M. Goldstein.

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If you recently attended a franchise show and are thinking about buying a franchise, there is a lot you need to know. Buying a franchise is a major investment; and, while franchise ownership presents many opportunities, there is also a lot that can go wrong. Before you sign a franchise agreement, be sure to follow these 10 tips from national franchisee attorney Jeffrey M. Goldstein.

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As a franchisee, there is a good chance that you are required to resolve any disputes with your franchisor through alternative dispute resolution (ADR)—either mediation or arbitration. Franchisors like mandatory ADR clauses for a variety of reasons, and they tend to favor mandatory arbitration clauses in particular. Arbitrating a dispute with your franchisor requires experienced legal representation; and, if you are facing a dispute with your franchisor in Massachusetts, you will want to speak with a Boston franchise attorney as soon as possible.

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If you are facing a dispute with your franchisor, you need to be very careful to protect yourself. Whether your goal is to save your franchise or to exit the system and move on to your next opportunity, you need to avoid a variety of mistakes that could prove very costly. As national franchise lawyer Jeffrey M. Goldstein explains, while franchisees have clear legal rights, these rights are limited in various respects, and those who do not take advantage of the rights they have available can find themselves facing unnecessary consequences.

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As a franchise owner, you can feel price pressure on both ends. Not only can rising prices make it more difficult to make ends meet, but you can also face resistance from customers (or would-be customers) who think you are charging more than you should.

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Buying a franchise in Illinois requires careful decision-making. This applies across the board—from choosing the specific franchise opportunity that you want to pursue to choosing your territory. When it comes to choosing your territory, there are lots of factors to consider, and this makes it critical to work with an experienced Illinois franchise attorney who can help you make informed decisions throughout the buying process.

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When you are thinking about buying a franchise, one of the key factors to consider (among many others) is the size and geographic dispersal of the franchise system. This includes not only the number and location of unit franchises, but also the number and location of any master franchisees.

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