Franchise Articles

Pickleball is one of the fastest-growing sports—and potentially the fastest-growing sport—in the United States. According to a report the Sports Business Journal published last year, “In terms of overall growth, 13.6 million people played pickleball in 2023, which contributed to a survey-leading 223.5% growth rate over the past three years.” As pickleball continues to grow in popularity, pickleball franchises are popping up with increasing frequency as well. What do you need to know about buying a pickleball franchise? New York franchise attorney Jeffrey M. Goldstein explains.

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A bill pending in the U.S. House of Representatives would give franchisees the right to sue their franchisors under the Federal Trade Commission (FTC) Franchise rule. While similar legislative efforts have failed in the past, this is a potentially significant development that franchisees should monitor in 2025. Find out more from national franchise lawyer Jeffrey M. Goldstein.

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For many current and prospective franchisees, the goal is not just to buy and operate a single outlet. Instead, the goal is to buy multiple franchises that will be operated by managers while the owner focuses on investing, reinvesting and ultimately building a much larger franchise portfolio. While this approach can prove very profitable, there are a number of inherent risks involved, and this makes it critical to work closely with an experienced franchisee lawyer who can help ensure that you are making informed decisions.

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In a recent case decided by the United States District Court for the District of Colorado, Rosenbauer America, LLC (“RBA”), a Delaware limited liability company that manufactures fire and emergency vehicles, faced a lawsuit filed by Max Fire Apparatus, Inc. (“Max Fire”), a Colorado corporation engaged in selling and distributing RBA vehicles. Max Fire alleged that RBA’s termination of the Dealer Agreement constituted breaches of the Dealer Agreement and the associated Dealer Handbook, as well as a violation of the duty of good faith and fair dealing. RBA filed a Motion for Partial Summary Judgment, seeking to preclude Max Fire from recovering damages for future lost profits or business value resulting from the termination of the Dealer Agreement. Max Fire opposed this motion, to which RBA replied. The court ultimately partially granted and partially denied the motion. Max Fire and RBA entered into a Dealer Agreement in 2016.  The Dealer Agreement was set to automatically renew annually unless terminated in writing by either party. Termination of the Agreement required written notice within thirty days via Certified Mail by either party. The agreement also referenced a “Dealer Handbook,” which required Max Fire to adhere to RBA’s established policies and the latest version of the Handbook. In November 2022, Max Fire received the August 2022 version of the Dealer Handbook. The Handbook included a termination section stating that termination, while uncommon, could occur due to non-performance, marginal performance, or critical ethical failures. Termination decisions would be based on reasons deemed adverse to […]

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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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