New Franchise Policies that Impact Franchise Questionnaires are in effect as of January 1, 2023
On January 1, 2023, a new policy went into effect that will apply to franchisors that use franchise questionnaires as part of their franchise sales process. The North American Securities Administrators Association (“NASAA”) policy places limitations on the FDD questionnaire. In addition, a California franchise law went into effect on January 1, 2023, related to the FDD questionnaire, and…
Did you know that your fiscal year can affect your franchise sales?
Check out our latest franchise question to find out why: https://drummlaw.com/blog/franchise-question/choosing-a-fiscal-year-end-for-your-franchise-company/
The franchisee breached their agreement. Now what? The default seems plain enough, so why would I need a lawyer’s help?
So, your franchisee has breached the terms of their franchise agreement. What do you do next? While their breach may be cause for termination, you shouldn’t rush into any conclusions. Otherwise, you could be making a misstep. First, consider whether a lawyer or compliance manager is needed. Not all defaults are equal. Some might require a simple phone call to fix. Others might require a…
Item 19 FDD 101: What You Need to Know to Franchise
You should have a Financial Performance Representation, or Item 19, in your Franchise Disclosure Document. The FPR is the first step in the communication process between you and your potential franchisee regarding the revenue or profits of the franchised business. Here is what you need to know about item 19 in FDD. Why Item 19 is Important Accurate representation of your franchised business in…
Buying an Existing Franchise: Everything You Need to Know
Congratulations! You have leaped into the world of franchising and buying an existing franchise. Here is how a franchise attorney can help you to prepare all the documents and solve legal issues. Do You Need a Franchise Lawyer to Buy a Franchise? A franchise lawyer will help you every step of the way in deciding whether or not to buy a franchise. The first order of business is to help you read…
Do You Need a Franchise Contract Lawyer to Buy a Franchise?
Yes, you should enter into a contract agreement with a franchise attorney by your side. The particulars of the FDD and Franchise Agreement require someone who can understand the legalese and help you avoid problems even before they arise. Although there are many great lawyers worldwide, you will want someone on your side who can comprehend all the legalese. Here is why you need a franchise…
Owning Multiple Franchise Explained
You have probably heard the phrase “there is safety in numbers.” And this is true, even if you are talking about numbers of franchises. A clever business person can certainly own more than one franchise, and there are several ways to go about this. Multi-Unit Franchise A multi-unit franchise is one in which the franchisee agrees to purchase and run several (or many) franchises of the same type.…
Commercial Lease Negotiations: Can a Franchise Lawyer Help?
If you want to open a retail franchise, you will likely need to lease some commercial space. And as with anything, you will want to get the best terms for your deal that you can. Hiring a seasoned attorney will give you a stalwart defender who will be by your side and support you in all retail commercial lease negotiations. Though a franchisor will give you all the tools of the trade, and you…