Bruce Schaeffer's blog

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

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.

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?

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.