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Log In / Register | Mar 16, 2010
Bruce Schaeffer's picture

Warning: Impairment of Intangible Property

Owners, particularly venture capital firms, of franchise companies that have been acquired within the past decade will have to do in-depth inspections of the booked value of their intangible property taking into account the world economic meltdown during the last quarter of 2008.

Why is Minneapolis Home to So Many Franchise Law Firms?

Perhaps it has something to do with the rates. Look at the attorney’s fees. For example, the US District Court for Minnesota was recently held in an attorney fee dispute as follows:
Bruce Schaeffer's picture

Why Franchisees and Particularly Franchisee Associations Need Information Security

If there’s a transaction that involves a card with a magnetic strip and a swipe – there’s a transaction that involves a risk.

Bruce Schaeffer's picture

Liquidated Damage Case Overblown

Radisson Hotels v. Majestic Towers

The Radisson case in regards to liquidated damages has been overblown. In this writer’s opinion, the essence of the decision simply upheld a specifically negotiated liquidated damages clause. Future royalties were only dragged into the argument as a means of computing the liquidated damages amount. Here's my commentary from when it first caused hysteria.

Bruce Schaeffer's picture

A Primer for Succession Planning for Franchisees

 A List of Essential Documents Needed in Preparing a Succession Plan

There are many key questions which must be addressed in creating a succession plan for a franchisee: Who is available for taking over the unit? Are they family? Are they available and qualified? Will a transfer now trigger the renewal process? How does one determine the fair market value of the franchise? And, is it better to sell the business before or after the death of the owner?

Bruce Schaeffer's picture

Succession Planning for Franchisees

Franchisees need to create a succession plan. It is essential for franchisor and franchisee to cooperate.

 Many hard-working franchisees, following the franchisor's business plan, have built their operations into very successful businesses representing a high percentage of their net worth. Because a franchise is a unique asset, however, fashioning a sensible estate plan for a franchise owner is far more difficult than for a sole proprietorship or closely held business. For one thing, a franchisee does not own their business outright; a franchise is only a contract right. Therefore, the franchisor, too, must be a participant in the decision-making process.