Competition is Fierce: FTC’s New Rule Banning Non-Compete Agreements

On April 23, 2024, the Federal Trade Commission (“FTC”)approved a new rule (“Rule”)  banning most non-compete clauses as an “unfair method of competition.” The Rule is set to take effect on September…

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Navigating the Impact of NLRB’s Latest Joint-Employer Rule on Franchisors

The New Rule The National Labor Relations Board (NLRB) issued a groundbreaking joint-employer rule on Oct. 26, 2023. This rule, slated to redefine joint-employer relationships, carries substantial…

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Unraveling Averages and Medians for your Item 19 Financial Performance Representation

Cracking the code of your Franchise Disclosure Document (FDD) may feel a bit like you’ve been thrust into a high-school math test. But fear not! We’re here to turn those numbers from…

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Best Practices for Renewing a Franchisee’s Franchise Agreement

Every franchise agreement has an expiration date. Accordingly, franchisors need to know how to properly handle franchise renewals and accompanying successor agreements. Although a franchisee’s right…

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The FDD Receipt Page: Why the Last Page in the FDD Matters a Lot

The receipt page is the last page of the FDD and serves as the prospective franchisee's acknowledgement of having received the document. Once signed, it provides evidence that the franchisor has…

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Growing Your Brand: Multi-Unit Franchises

When you're planning to grow your brand, the Area Development model (or Multi-Unit model) is a strategic path for rapid growth. Why Multi-Unit Franchising? An area developer (or multi-unit franchise…

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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…

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Is Your Chosen Auditor Legally Qualified to Perform the Audit?

With certain phase-in exceptions, federal and state franchise disclosure laws require that the FDD include an audited financial statement.  Some regulators have started to verify an auditor’s…

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Why 9 30 is a better fiscal year end than 12 31 900x785 1

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/  

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How to Get Out of a Franchise Agreement: Ultimate Guide

They say all good things must come to an end. Unfortunately, that plays true to many franchise relationships as well (though if it’s ending, it may not have been all that good, to begin with). Keep…

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