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What Happens if a Franchisor Revokes a Franchise Agreement?

Can franchise owners take assurance in their franchise agreement? Such agreements, or multi-page contracts, govern the relationship between the franchisor and the franchisee. However, the franchisee may lack options to defend against unanticipated actions, such as the franchisor’s revocation of the agreement.

Adhesion Contract

A "take it or leave it" standard form contract in which one party is able to dictate almost all the terms of the agreement to the other party.

Buying a Franchise: What Is Your Exit Strategy?

Perhaps without exception, all franchise agreements contain a non-compete covenant. The covenants may vary. The covenants may prohibit you from operating a competing business or any business when you are a franchisee.

Plain Language is Important

In H&R Block Tax Services v. Franklin, (pdf) the Court of Appeals concluded (over a strong dissent) that H&R Block had the right to terminate two franchise agreements where those agreements expressly stated that Franklin could terminate at any time but only allowed H&R Block to terminate for cause.

Ten Things Every Hotel Borrower Should Know

Buying hotels usually means obtaining financing. Jeffrey Steiner, a hotel attorney, says there are ten things that a hotel buyer may not know about loans.

When Is a New Franchise Too Close?

Not every franchise agreement affords a protected territory.

Roark Capital Buys Massage Envy, Ass'n Shut Out

Massage Envy store in Denver area
A Massage Envy store in Centennial, Colo, photo: sparks

ATLANTA — While the regional franchisee developers association hoped to play an integral role in finding a new buyer for Massage Envy, one with whom they could form a long-term relationship alliance, that prospect has now diminished.

The ABCs of FDDs. Item 9, 11, 15: Franchisor and Franchisee Obligations

This is the sixth in a series of articles for prospective franchisees that discuss the components of a franchise disclosure document. Unlike almost all other articles about what you will learn in a franchise disclosure document, however, this series will focus on what you may not learn.

Beware Legaleze! Covenants not to Compete

Be careful what you sign at the beginning of a franchise relationship, it could come back to bite you. Most franchisors include covenants not to compete in their franchise agreements.

2011 Lawsuits through the Eyes of DLA Piper

WASHINGTON – As we are now well into 2012, a look back at last year’s pertinent legal cases is important for franchisors and their attorneys.