Landing the Big Fish: Selling Multi-Unit Deals

Landing the Big Fish: Selling Multi-Unit Deals

Emerging franchisors often view multi-unit deals as a golden egg. However, before jumping into such a commitment, a franchisor should take some time to self-reflect and consider, “Is this right for me?”   Multi-unit sales will only succeed if every aspect of a franchise is compatible with integrating and implementing multi-unit deals. The ability to handle multi-unit deals needs to starts at the grassroots level of the organization. It needs

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A Step in the Right Direction: NASAA Releases New Item 19 Commentary

A Step in the Right Direction: NASAA Releases New Item 19 Commentary

Last week, the North American Securities Administrators Association (“NASAA”) published a notice of request for public commentary regarding financial performance representations, or “FPRs”, that a franchisor discloses in Item 19 of its FDD.  The commentary aims to create a set of guidelines that will control how franchisors are permitted to disclose financial results in its Item 19, by prohibiting certain types of FPRs and requiring additional support or information in

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Attention Spammers: New Rules for Marketing Via Text and Email

Attention Spammers: New Rules for Marketing Via Text and Email

  Before franchisors (or any company) starts sending commercial texts or emails, they should be aware of the new rules regarding this type of marketing.  The Federal Communications Commission and its CAN-SPAM laws govern the rules related to text marketing and email marketing, which means that any person, including business entities and nonprofit associations, that initiates commercial e-mail messages must comply with the CAN-SPAM Act requirements.   Importantly, CAN-SPAM does

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Franchisee in the Jailhouse

Franchisee in the Jailhouse

One huge dilemma a franchisor can face is when a franchisee is accused of a crime that has nothing to do with the operation of the franchised business. First, you have to look to the terms of your franchise agreement. Most franchise agreements will allow a franchisor to terminate the franchise agreement if a franchisee is convicted of a crime or engages conduct that reflects poorly on the franchisor’s brand

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Paperless Filing for State Franchise Registrations

Paperless Filing for State Franchise Registrations

  This week, the Wisconsin Department of Financial Institutions sent out an email confirming that Wisconsin will only accept electronic filing (or “e-filing”) of all franchise registration applications beginning on October 1, 2016. With this announcement, Wisconsin will become that first franchise registration state that does not allow franchisors to submit registration applications in the mail.  This communication also present us with a good opportunity to review the status of

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Avoid the Pitfalls of Offering Gift Cards Through Your Franchise System

Avoid the Pitfalls of Offering Gift Cards ThroughYour Franchise System

Do you have system-wide gift card program?  Have you talked to your attorney regarding the federal and state requirements related to gift cards?  What happens to the gift cards sold by a franchise location that subsequently closes?  If you offer gift cards through your franchise system and haven’t spoken to your attorney, it’s definitely time to have that conversation. The Credit Card Accountability Responsibility and Disclosure Act (the “Act”) regulates

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Mediation Needs More Bite

Mediation Needs More Bite

Although pre-litigation mediation is an option for franchisors and franchisees to cut legal costs, stay out of a courtroom and get most legal disputes taken care of in short period of time, many do not cooperate, rush into court and in most instances courts do not enforce mediation provisions like they do with arbitration provisions. A growing majority of legal professionals will encourage mediation as a way to their clients

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Don’t Miss out on the Springboard Event for Emerging Franchisors!

Don’t Miss out on the Springboard Event for Emerging Franchisors!

We are fast approaching the 4th annual Springboard Event. Each year, franchise law firm Fisher Zucker and franchise PR firm Fishman PR team up with Entrepreneur Magazine to host the preeminent event for emerging brands. The past 5 years have shown emerging brands to be a major population in the franchising world with 100% of IFA’s new membership since 2011 having less than 60 units. This trend has not slowed:

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NO REFUNDS WHEN IT COMES TO CURRENCY EXCHANGE PROVISIONS IN FRANCHISE AGREEMENTS

NO REFUNDS WHEN IT COMES TO CURRENCY EXCHANGE PROVISIONS IN FRANCHISE AGREEMENTS

  Franchisors regularly use comprehensive provisions in their franchise agreements in an attempt to control how fees and other amounts payable to themselves and, in certain circumstances, their approved suppliers. When a franchisor decides to enter the international arena, the stakes are heightened and host of new issues such as withholding taxes, stamp duty, currency of payment and exchange controls can often times take center stage in the pre-sale negotiating

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