Helpful Guidance To Franchisors On Implementing New Revenue Recognition Standards

Helpful guidance to franchisors

FisherZucker partner Joe Dunn was part of the IFA taskforce charged with addressing how the new standard alters the way in which franchisors can recognize initial franchise fees in their audited financial statement.  After much consultation with the SEC and the Financial Accounting Standards Board (FASB), which governs auditing standards in the United States, we’re pleased to say that we’ve obtained some helpful clarity and guidance. Under the present standard,

Read more

Streamlining the SBA Approval Process with a Universal Addendum

Streamlining the SBA Approval Process with a Universal Addendum

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

Read more

Technology Solutions for Emerging Franchisors

Technology Solutions for Emerging Franchisors

Some of the more difficult decisions facing emerging franchisors involve technology — the level of development needed in the early stages of growth; which types of systems to tackle first; and whether to buy from outside sources or to build platforms internally.  Often, significant up-front costs must be balanced against the multitude of advantages that are enjoyed by an advanced, integrated technology system.   A recent study by the Boston

Read more

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

Read more

Franchise Agreement Changes for 2016

Franchise-Agreement-Changes-for-2016

  We are rapidly approaching the time of year when franchise systems complete their annual FDD updates.  When evaluating potential changes to the franchise agreement for 2016, prudent franchisors will consider not just the business implications, but also the relevant regulatory decisions and rulings from the prior year. Unsurprisingly, many of the major rulings from 2015 concern the joint employer question that currently looms over the franchise industry.  At this

Read more