Last year, Julie Lusthaus was nominated to the Hall of Fame for being a Legal Eagle 10 years in a row. This year is no different, as she just landed her 11th year in a row on this exclusive list. Learn more about this nomination in the link here. SHARE THIS POST LinkedIn Facebook Twitter Email Print The post April 2024, Julie Lusthaus Named Franchise Times Legal Eagle appeared first on Lusthaus Law P.C ..read more

Video Transcript: What Are Some Important Franchising Terms? [00:05] I’m often asked to explain various franchise terms like who’s who, the franchise relationship. Let’s start at the beginning. Franchising is a strategy for business expansion whereby one party licenses its trademark or brand name and method of business operation to another party who uses that name and method in the operation of the business. The franchisor is the individual or company that sells or grants a franchise for the sale of goods or services, McDonald’s corporate. The franchisee is the independent person or business ..read more

On March 1, the U.S. District Court for the Northern District of Alabama found the Corporate Transparency Act (CTA) unconstitutional in a case filed by the National Small Business Association (NSBA).  We recently reported how the CTA could impact franchising in New York and nationwide. The news coming from the Yellowhammer State is the perfect catalyst for wrapping up Q1 by revisiting what this development could mean for you and your franchise.  Corporate Transparency Act – The Basics The CTA was enacted by Congress in 2021 and took effect on Jan. 1, 2024. The CTA requires many compa ..read more

Video Transcript: What Are Some Important Franchising Terms? [00:05] I’m often asked to explain various franchise terms like who’s who, the franchise relationship. Let’s start at the beginning. Franchising is a strategy for business expansion whereby one party licenses its trademark or brand name and method of business operation to another party who uses that name and method in the operation of the business. The franchisor is the individual or company that sells or grants a franchise for the sale of goods or services, McDonald’s corporate. The franchisee is the independent person or business ..read more

With 2024 in full swing, February is the ideal time for franchisors to start the Franchise Disclosure Document (FDD) renewal process. Let’s discuss why. FDD Basics Franchisors are required by federal and state law to prepare an FDD. Its 23 items provide necessary information to franchisees enabling them to make informed decisions on purchasing the franchise.  Preparation of the FDD is not a one-time event and it must be updated annually. Although applicable laws and regulations vary, the update generally must occur within 120 days after the franchisor’s fiscal year end. If the end of your ..read more

We recently discussed new federal and state legislation covering corporate transparency. There are additional legal trends that NY franchisors and franchisees should know that can impact their businesses. Let’s review what was newly enacted in 2024 and what was nearly passed into state law.  NY’s New Minimum Wage Now In Effect New York State’s minimum wage increase was in flux during 2023 as previously discussed, but it went into effect on Jan. 1, 2024. The new minimum wage is now $16-per-hour in New York City, Long Island, and Westchester County and $15 hourly in the rest of the state.&n ..read more

The franchising industry will undoubtedly be impacted by new laws and updates to existing laws this year. With 2024 in full swing, let’s review legislative developments at the state and federal levels that may impact New York franchisors and franchisees.  Corporate Transparency Act – Federal Law The Corporate Transparency Act (CTA) was enacted by Congress in 2021 and took effect on Jan. 1, 2024. The CTA is a federal law that requires many companies formed or operating in the United States to report their beneficial ownership information (BOI) to Treasury’s Financial Crimes Enforcement Net ..read more

Pursuant to federal and state law, Franchisors are required to provide prospective franchisees with a franchise disclosure document (FDD) to enable franchisees to make informed decisions about whether to purchase the franchise. This documentation is crucial to protecting franchisees who should seek legal representation to ensure they are well-informed before entering into an agreement. As previously discussed, the Federal Trade Commission’s (FTC) Franchise Rule requires franchisors to provide an FDD to any prospective franchisee at least 14 days before an agreement is signed or any considerati ..read more

We recently discussed some of the most frequently used franchising terms and one concept touched upon was licensing. Licensing is at the core of franchising – but can sometimes be mistaken for it – which is why it deserves its own installment. Let’s review licensing and its role in franchising.  Definitions A license is a legal agreement that gives the licensee permission to use the licensor’s intellectual property, such as trademarks, patents, copyrights, or trade secrets. License agreements may also involve the use of technology, brand names, or other intangible assets. Franchising is a ..read more

In franchising, it is always better to be ahead of the game. This is especially so for franchisees, who are not provided with an unlimited right to operate their businesses. Let’s discuss what franchisees need to know about renewing their franchise agreement and how collaborating now with a NY franchise lawyer will help you make an informed decision on renewing in 2024. Check Your Calendar Most franchise agreements have a term of five or 10 years, depending on the industry in which the franchise is operating. If your franchise agreement was signed in 2014 or 2019 – which could seem like y ..read more