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Franchisors, as they grow and add multi-unit and sophisticated franchisees, need to retool how they provide operational support.  Specifically, franchisors need to fashion the support that they provide and tailor it to the individual needs of the franchisee.  While mom and pop franchisees often need hand holding in the minutia of the business, more sophisticated professional franchisees such as highly sought after experienced multi-unit franchisees need benchmarking, data, and best

As the landscape becomes ever more competitive, franchisors need to maximize their franchisee relationships more than ever to drive system and unit profitability.  The benchmarking and sharing of data and best practices is critical to this effort.  However, it’s not enough to merely check the box, franchise leadership need to get the most out of the data.  This involves the franchisor providing engaging, and useful, leadership updates and carefully listening

President Trump has named Philip A. Miscimarra as Acting Chairman of the National Labor Relations Board, replacing former Chairman Mark Gaston Pearce. As Chairman, Miscimarra may issue rulings regarding the National Labor Relations Act, so franchisors should seek to remain informed on any decisions that may impact their status under joint employment laws. Miscimarra served a Board Member of the NLRB since August 7, 2013, after having been nominated by

A successful franchisor understands that keeping up with the ever-evolving needs and wants of the consumer contributes crucially to the company’s longevity. However, while some changes in taste are simple to identify and implement, others may require a larger, more deliberate shift in business strategy. The Boston Consulting Group has recently cautioned restaurant operators and franchisors of the impending disruption caused by third-party delivery services. Reflective of consumers’ constant desire

Franchise executives and professionals recently gathered at the Union League in Philadelphia at the Franchisor Round-Up to discuss what 2017 holds for the franchise industry.  The Round-Up focused on practical changes franchisors can implement to best position their brands for the legal and regulatory uncertainties that lie in the not so distant future. Legislative Update and Outlook The Round-Up discussed the ramifications of Donald Trump’s election, with a focus on

For those of you following the Saladworks v. Workers’ Compensation Appeal Board pending before the Pennsylvania Supreme Court, I’m pleased to report that the Court, after briefing and argument, dismissed the appeal as “improvidently granted”.  This result leaves in place what we thought was well settled law in Pennsylvania that the franchisor is not generally liable for the acts or omissions of its franchisees. This case involved the employee of

Over the past year, many of our franchisor clients have raised concerns about the length of time that it takes for their FDD and Franchise Agreement to be approved by the Small Business Administration (SBA), which is a requirement to listing a franchisor on the SBA Franchise Registry.  Being listed on the Registry greatly facilitates the approval process for franchisees that seek SBA financing because the franchise agreement doesn’t need

Last week at the Restaurant Finance and Development Conference in Las Vegas, a panel of restaurateurs discussed the concept of no tipping at restaurants.The panelists discussed the main benefit of doing away with tipping – that it equalizes pay among restaurant staff.  When tipping is permitted, front of house staff like servers and bartenders can often earn significantly more than the members of the kitchen staff.  This inequality can cause

A recent change in Federal Accounting Standards Board (“FASB”) guidelines threatens to alter the way in which franchisors can recognize initial franchise fees in their audited financial statements.Historically, franchisors have recognized the revenue from initial franchise fees as an asset upon the opening of the franchised unit, as accountants view the initial franchise fee as consideration for the franchisor completing its pre-opening obligations. Until opening, the initial franchise fee would