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

I saw a great post from divorce attorney Eliana Baer about her answer when a client asked her whether she believes in settlement or litigate, litigate, litigate. Her post is a fun one but the answer is an important one for clients (and often lawyers) to understand. I am a believer in settlement under the right circumstances and when it is in the client’s best interests. If you can settle your dispute reasonably it is a big benefit to you. You can save on attorneys’ fees, but maybe even more importantly, you take control of your case to determine the outcome on your own. In those circumstances ..read more

Big news this past week in business/employment law. The FTC is proposing legislation banning noncompete clauses. The agency estimates this could increase workers’ salaries by nearly $300 billion per year. I’ve never been a fan of noncompete clauses for lower paid workers. But I’ve always believed there is some validity to a business protecting their customer base. There should be a balance between restricting someone’s ability to earn a living v. allowing someone to raid their employer’s customers when they leave employment. The proposed legislation would generally prohibit employers from usin ..read more

Last week I wrote about how the franchise industry has it wrong. But don’t misunderstand me, that doesn’t mean the future of franchising isn’t bright. In fact, the breadth of the franchising industry is pretty staggering. Red Boswell writes on the FranchiseWire blog that the 2023 will be the best year ever in franchising. He says there are 12 reasons why the future looks bright for franchising. I go through his points below adding some of my own comments. Make sure to read his article. I did find his perspective interesting. Franchise Brands are joining forces. Boswell says there are strength ..read more

You may want to own your own business but you also don’t want to quit your day job. Is it possible to find the elusive extra income to add to your bottom line and possibly even give you the freedom to quit your job in the future? Kimberly Crossland has a great post on the Franchise Direct blog discussing just how you might be able to start your own franchise side hustle. Is it easy? Of course not. But she discusses some basic elements you should look for when trying to find a franchise side hustle. Those elements include: BACK OFFICE SUPPORT If you are going to have a side hustle, back office ..read more

I have reviewed hundreds of franchise disclosure documents (FDDs) and franchise agreements at this point in my career. And mostly, my review always solicits one question in my mind: Do franchisors need these overwhelmingly restrictive franchise agreements? Most FDDs and franchise agreements disclaim just about any real obligation to do anything on behalf of franchisees. Don’t believe me? Read them yourself. Show me where I am wrong. Don’t franchisors have some obligation to support their franchisees and help them be successful financially? And while that seems like a simple thought most fran ..read more

Are you thinking about starting a new business in Iowa? Here are 10 tips to get you on your way. Save up as much money as possible before starting. Start on a shoestring. Don’t get the fanciest office or hire lots of employees. Protect your personal assets. Form a corporation or limited liability company (LLC). Understand how–and if–you will make a profit. Make a business plan, no matter how short. Get and keep a competitive edge. Put all agreements in writing. Hire and keep good people. Pay attention to the legal status of your workers. Pay your bills early and your taxes on time ..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