Comments to the Commentary: Fisher Zucker’s Response to NASAA

As we mentioned in a previous blog post, the North American Securities Administrators Association (“NASAA”) published a notice of request for public commentary regarding financial performance representations (“FPRs”) that franchisors disclose within Item 19 of their franchise disclosure documents (“FDDs”).  The request by NASAA was a follow up to a similar request they made a year ago.  In both requests, NASAA has sought feedback from the public regarding a proposed

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What Strategic Buyers and Private Equity Firms Value Most When Looking at Your Franchise

What Strategic Buyers and Private Equity Firms Value Most When Looking at Your Franchise

Even if your franchise is in its nascent stages, it is not too early to organize your business for a strategic buy-out or for an infusion of private equity in the future. This is not to say that a budding franchise would be able to enter into such an agreement before proving itself; rather, much of what investors look for can be cultivated early on in the business and are

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The Third Circuit is Opening the Doors for Franchisees to File Class-Actions Under the WPCL

The Third Circuit Court of Appeals recently affirmed a lower court’s decision to permit a group of franchisees to file a class action lawsuit against a franchisor; a decision that could potentially lead to franchisees being deemed employees of a franchisor. In the matter of Darryl Williams; Howard Brooks v. Jani-King Of Philadelphia Inc., et al., No. 15-2049 (3d. Cir., September 21, 2016), two Philadelphia area Jani-King franchisees brought claims

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Onboarding New Franchisees

The onboarding process often comes down to the franchisor attempting to pack as much information as possible into the training session and overwhelming the franchisee. In order to have a less frustrating and more meaningful orientation process, however, onboarding should begin as early as the recruitment stage. This includes imparting the vision and the culture of the business upon prospective franchisees early on, as well as managing their expectations. Transparency

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Making Sure Your Opportunity is Bankable

One of the most repeated pieces of advice given to emerging franchisors is to make sure that the first twenty franchise units have as few financial problems as possible. The strength or weakness of the initial franchisees will be what the franchisors will be reporting in their Item 19’s for years to come, and it has enormous long-term impact on the value of the brand. It can ultimately impact future

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