The Franchise Owner's most trusted news source

Log In / Register | Jul 22, 2018

Tips in Recognizing a Franchise in Disguise

Due diligence to prospective franchise owners is important. Part of that process is governed by a rule promulgated by the U.S. Federal Trade Commission.

Due Diligence Tips for International Franchise Opportunities

For readers who have traveled overseas, coming across certain American franchises may be a welcome reminder of home. Brands like Starbucks or McDonald's seem to have a ubiquitous world presence.

Arbitration Clauses Might be Buried in Fine Print

Without understanding all of the contractual language, a potential franchise buyer may inadvertently sign away some of his or her rights.

Issues to Consider before Franchising

Many of my franchise law posts focus on legal tips to consider when buying a franchise. However, an established small business owner may also benefit from an attorney’s counsel when he or she is considering an expansion into the franchising arena.

Could a Franchise Help Start Your Own Business?

If you’ve dreamed of starting your own small business but have hesitated because of certain issues, a franchise might be the answer. Indeed, a franchise can provide an opportunity to work in an industry in which you have interest, ability and knowledge, while at the same time offering a safety net.

Does Your Franchise Contract Limit the Franchisor's Interference?

Although franchise negotiations can become heated, a recent story illustrates this potential taken to the extreme. Specifically, a franchisor locked himself inside the franchisee's business premises, prompting police to report to the scene.

What Is Refranchising?

In the restaurant industry, selling franchisor-owned restaurants to local franchisees, or refranchising, seems to be the latest rage. Consider the recent example of McDonald’s.

Buyers Should be Wary of Franchise Growth Estimates

Although the entertainment industry may be unique in many ways, it still operates under franchise law concepts applicable to any industry. In any industry, a prospective franchise buyer should be wary of overly confident valuations, or unsupported estimates of future growth and profitability. 

Did You Sign Away Your Right to Sue Your Franchisor?

A recent trend in the franchise industry is to have a franchisee waive their right to sue the franchise agreement should a dispute arise, agreeing instead to have the issue decided by an arbitrator and/or in mediation.

Can Unfavorable Terms in a Franchise Contract Rise to the Level of Fraud?

Franchise law is a combination of federal and state laws. Some of those laws require franchisors to disclose certain information to prospective buyers. Although the U.S. Federal Trade Commission may investigate allegations of franchise fraud, there are many franchise agreements that may not rise to the level of fraud, yet be highly unfavorable to the buyer.