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Log In / Register | May 3, 2016

In Minnesota It Takes the Wizard of Oz to Prove Franchisor Fraud

The United States District Court for the District of Minnesota on January 12, 2016, in Moxie Venture L.L.C., et al. v. The UPS Store, Inc., 2016 U.S. Dist. LEXIS 3603, hammered the final nail in the coffin of franchisee fraud claims under the Minnesota Franchise Act.

Pitfalls of a Franchise Agreement

Franchise companies are required by law to provide prospective franchisees a franchise agreement. The franchise agreement lays out the company's guarantees and states the legal limits under which they are obligated.

Does an Unclear FDD Indicate a Possible Disguised Franchise?

If you've recently decided to buy a franchise and are ready to start the process to owning your own business, then you are probably aware of the fact that one of the first documents that a franchisor should give you is a disclosure document.

IFA Loses Seattle $15 Wage Hike Lawsuit

Strike for $15
Workers protest for $15 wages in Detroit. Photo from PR firm BerlinRosen

SEATTLE – While Seattle became the first city in the nation to raise its minimum wage to $15 an hour in order to reduce income inequality, some in the franchise community opposed it. They objected that they would be treated as large employers and not as independent small businesses. They protested how non-franchised small businesses would reap the benefits of a delay in increases of minimum wage, a delay that franchises would not reap.

Ex-Quiznos Owner Schaden Denied Discovery in Avenue Capital Lawsuit

Quiznos SubDENVER – A Colorado district court has denied the request of Quiznos' former owner Rick Schaden and his former executive team to obtain crucial documents from the private equity firms that sued them last year.

Important Contract Issues for Area Developers, Area Representatives and Subfranchisors

In addition to the typical purchase of a single-unit franchise, there are three other franchise offerings made by many franchisors referred to as area development rights, area representative rights, and subfranchise rights.

Exclusive Territory: How It Affects Franchises

Have you ever wondered why you never see a franchise business within a certain mileage of another business from the same franchisor?

California Senate Sends Fair Franchising Bill to Gov. Brown

Sacramento dome from the inside
Inside view of Sacramento capitol dome. photo/KatieCarr

SACRAMENTO—The California state senate voted 23 - 9 late Thursday in favor of SB 610, a bill that strengthens franchisor good faith relations with franchisees. It is now ready for Governor Jerry Brown's signature to become law.

Baloney, Big Macs, the NLRB and Franchise Advocacy

A column last week in the Los Angeles Times, entitled “The NLRB-McDonald's Ruling Could Be the Beginning of a Franchise War” is another example of how top franchise industry ‘experts’ and ‘talking heads’ too frequently lack sufficient knowledge about the facts and theories they are discussing.

Showdown in Harrisburg, Pennsylvania

Like a strong marriage, a strong franchise relationship must be built on shared success. In the end, no relationship is likely to work out when one side holds all the cards.