Item 19 Financial Performance Representations in the time of COVID
You’ve probably heard the phrase, “COVID ruined everything” more than once in 2020. And unfortunately, we’re here to tell you the same likely applies for Item 19 financial performance representations (FPRs). Any operating results presented in Item 19 must have a reasonable basis and cannot be misleading. If COVID has caused (1) a drop in revenue, (2) temporary or permanent store closures or (3)…
Why Your Trademark Application Needs One Last Extension
“Laughter is the best medicine, but your insurance only covers chuckles, snickers and giggles.” We’ve all been there. Whether it’s buying AppleCare or upgrading insurance on your rental car, odds are you feel very strongly about whether additional insurance is worth it or not. But… if you’ll give us a few moments of your time, we’d like to talk to you about trademark extension insurance.…
Trademark Scams
We have been trying to reach you about your car’s extended warranty…. a member of the royal family would like to transfer a large amount of money to you…. your Netflix password has been compromised, reset now… Does this sound familiar? Well now you can add another to the list. Harmful phishing schemes are everywhere these days and scams, or spam, that specifically target trademark holders are…
California Consumer Privacy Act (CCPA):
Considerations for Franchisors
By introducing the California Consumer Privacy Act, California continues its pattern of enacting legislation that has the potential to impact the franchise industry in a significant way. The CCPA applies to any company that “does business” in California (which is a broad category) and that meets the criteria explained below. If your franchise company is based in California, or (potentially) even…
Advertising Franchises
Franchise for sale! Only fifty cents (well, not really but you get the idea). You have some amazing advertising pieces to sell your franchise. So you can just use them however and wherever you want, right? No. This would be too simple. Certain states require you to pre-file advertising materials and wait a specified time before using them in the state. Some states require that you register…
Working from Home:
10 Tips for a Quarantined Workforce
Drumm Law and its team of 24 have been working remotely for 10 years. Here are some tips for the newly virtual. Get out of bed (literally and figuratively) Do not lay in bed with the laptop. That is fine for weekend/evening work but not for day to day. Get out of your pajamas. There is a psychological component (for me at least) about getting dressed and ready for work and working. Setup a work…
California’s Assembly Bill No. 5 (AB-5)
Sometimes it Pays to Wait-and-See
Many franchisors are wondering what changes they should make in response to California’s AB-5 that went into effect on January 1, 2020. In a nutshell, we don’t think it makes sense to make any significant changes to a franchise system because the applicability of AB-5 to franchisors isn’t fully determined, and there will likely be changes to this law in 2020. The purpose of AB-5 is to crack down…
SELLING YOUR BUSINESS:
Top three tips for getting the purchase price you want
So, you are thinking of selling your business, or part of your business. Congratulations! Now, take a seat and roll up your sleeves. There is hard work and tears ahead (and not just for your attorney). A few years ago, my husband and I sold our house. But before we could put it on the market, our agent told us to get to work. We went through every drawer and every closet, removed anything…
Should I have a financial performance representation (FPR) in my FDD?
When I get asked this question, I respond as follows: “The FDD has 23 Items. If there were just one Item in the Franchise Disclosure Document (FDD) you could look in deciding whether or not to buy a franchise, which Item would it be? I don’t care what it is, how much it costs, I need to know if it makes money.” FDDs tend to be packed with information and details, and prospective franchisees often…
California Franchise Exemptions:
A Franchisor’s, “FastPass” to Selling Franchises
Nobody wants to wait in line…especially when you’ve worked hard and paid a lot of money just to get to the entrance. Disneyland first introduced the FastPass in 1999. This pass lets them skip the long lines for popular rides. It’s a win-win because FastPass frees guests to enjoy their time—and spend more money—elsewhere in the park. In California, the process to register a new franchise offering…