Starting a business can be a daunting task, but franchising has become a popular choice for entrepreneurs who want the benefits of owning their own business with a proven model, as well as support from the franchisor. However, not all franchisors provide the support franchisees need to operate a successful business. In this blog post, we will discuss the reasons why franchisors fall short in providing support to franchisees. Lack of Communication: One of the most significant reasons why franchisors fall short in providing support to franchisees is due to a lack of communication. Franchisors ma ..read more

Buying an existing business is often a great opportunity for would-be business owners. It is a way to skip the early stages of business development and hit the ground running. However, before making any serious decisions, it is important to understand the legal implications involved in buying an existing business. There are many legal issues that can arise, such as ownership disputes, tax liabilities, and contract disputes. In this blog post, we’ll discuss nine tips for buying an existing business from a legal perspective, so you can approach the process with confidence. Conduct an extensive ..read more

Franchise agreements are the heartbeat of the franchise industry. They dictate the relationship between the franchisor and franchisee, outlining everything from branding and marketing guidelines to operational procedures and fees. Let’s be honest. These franchise agreements are VERY one-sided. No one denies it. So, it is not a surprise that many prospective franchisees ask, “Are franchise agreements really negotiable?” The answer is yes – in theory. But in reality, many franchisors won’t negotiate the franchise agreement, and today, we’ll explore why. Consistency is Key One of the cornerstones ..read more

You’re convinced that owning a business is your true calling in life, and you decide to invest in a franchise. But before putting pen to paper, you should do your due diligence and understand all the risks and rewards that come with that decision. One essential step is to review the Franchise Disclosure Document (FDD) that outlines all the necessary information you need to know before taking the plunge. However, reviewing this document can be overwhelming, especially for first-timers, which is why it is best to have a franchise attorney help you navigate through the FDD. In this blog post, we ..read more

One of the biggest concerns that business owners have is dealing with a legal or business crisis. Whether it is a lawsuit, a data breach, or other sensitive issues, a crisis can greatly impact a business. In fact, it is not unusual for many businesses to close within a year of experiencing a crisis. Knowing how to properly manage a business crisis can make all the difference in saving your company from bankruptcy or other legal liability. In this blog post, we’ll discuss some helpful tips on how to deal with a legal or business crisis. Be prepared. The old Boy Scout adage means you are in a s ..read more

Thinking about buying a franchise? Franchises can be a great way to start your own business. They offer the benefits of being your own boss with the support and resources of a larger organization. But there are some things you need to think about before making the decision to buy a franchise including the financial stability of the franchisor, training and support, brand recognition, and location. Financial Stability Financial stability of the franchisor is essential when considering a franchise purchase. Before you sign a franchise agreement, it is important to understand the franchisor’s und ..read more

If you are a business owner who is looking to sell or transfer your business, then it is important to understand the importance of effective succession planning. Succession planning helps ensure the future of your business is bright and secure, regardless of who owns it. Let’s break down what succession planning entails and how it can help protect both you and your business. The Benefits of Succession Planning Succession planning involves preparing for the eventual transfer of ownership of a business from one person to another. It can provide numerous benefits, including ensuring the continuit ..read more

Really interesting article in this weekend’s Wall St. Journal on how private equity firms are buying up car washes and turning them into regional chains. There is a trend in private equity to buy up small businesses is to bundle the businesses in order to “roll-up” those businesses and find new ways for them to make money. The goal is to create more valuable companies that can be sold for multiples of what the private equity investors paid. This is happening in all kinds of businesses such as dentist offices, auto-repair shops and dry cleaners. It is happening in the franchise industry as well ..read more

I made this observation on Twitter recently. Franchisors should stand by their trademarks. What? Why would you say this? Doesn’t every franchisor stand by their trademarks? No. No they don’t. If you look closely at your franchise agreement, it is very likely the franchisor will not indemnify its franchisees against trademark infringement by third parties. This means the franchisor isn’t willing to protect its franchisees from challenges to the name of the franchise and its brand. Franchisees are really buying two main things from a franchisor. One is the system. And the other is the license to ..read more

A business owner approaches you to invest in his business. He comes up with an idea to “sell” a portion of his equity in the business. You listen to the business owner’s pitch and likes the idea. You decides to invest in exchange for “ownership.” The problem? Nothing is in writing, you have invested the money, and there is nothing that documents whether you are entitled to ownership, whether it was a loan, or perhaps even a gift. I cannot tell you how many times I’ve seen something like that happen. I have seen people invest hundreds of thousands of dollars without a written agreement signed b ..read more