The dramatic morphing, scaling back and, in many cases, shutdown of franchising due to social distancing is going to end soon. Now is the time to plan how to scale your franchise system back up.
Today we spend a lot of our time scrubbing our clients' manual library, training programs, and agreements to remove unnecessary controls. Our goal is to put the franchise relationship back into the proper balance between brand standards versus control.
If you are considering becoming a franchisee, be aware that most of the "business advisors" serving the franchisee community are actually franchise brokers.
Understanding the root cause of noncompliance can surface underlying issues the franchise system may need to consider in formulating a change strategy.
Of all the mistakes new business owners make, the most fatal is failing to anticipate the cost of getting and staying in business.
A qualified franchise attorney can separate contract terms and obligations that are “acceptable” or a “common practice” in a franchise relationship from those that may be excessive or unusual, and can help you negotiate with a franchisor.
Companies new to franchising have difficulty understanding the essential differences between services provided by experienced franchise legal counsel and those provided by qualified franchise consultants in developing the structure and strategy of a franchise system.
In order for franchisors to legally franchise their businesses in the United States, franchisors must be aware of, and comply with, all of the foregoing laws described in this article.
There is a second type of encroachment in franchising, dealing with a different “turf” battle. What, if any, boundaries are there for the services lawyers and consultants provide to their clients?
Most franchise systems have procedures in place for requesting approval of new products or services. Often the new items, after thorough research by the franchisor’s staff, are tested in company-owned locations or in franchisee-owned locations.
When MSA works with a client as part of a litigation strategy team, our role is generally to facilitate business discussions focused on preserving the value of the franchise system, and keep the franchisor-franchisee business relationship on a separate track.
In franchising, a tension often exists between the lawyer and the consultant because many issues don’t neatly fall into purely legal or purely business buckets.
Of all the inherent advantages in owning a franchise, the one overriding strength is franchising’s ability to replicate the consumer experience consistently from one location to another.
An expert in franchise law can help you understand what you are getting yourself into, and is your best protection against succumbing to what might kindly be described as your “entrepreneurial fever.”
It's estimated that over $100 billion in seed capital is invested in businesses in the United States by friends and family. The angel investor market accounts for approximately $80 billion in seed capital investment.
One approach to funding your franchise is through traditional financing. Another is to find a partner, or one or more investors, willing to invest in the deal.
Considering selling your franchise? This article explains some of the important differences between an asset sale vs. a stock sale.
Sid Feltenstein, the former head of Long John Silvers and A&W (owned by Yorkshire Global) who engineered their sale to Yum! Brands, is joining forces with other industry notables to start a venture fund that will invest in small emerging...