In the realm of business agreements, noncompete clauses have long been a subject of scrutiny and debate. These contractual provisions restrict individuals from working for or starting a competing business within a specified time frame and geographical area after leaving their current employment. While the Federal Trade Commission (FTC) has taken steps to limit the application of noncompetes with its recent ban, one area where they still hold sway is in the franchise industry. Franchise Noncompetes: An Exception to the Rule Despite the FTC’s efforts to limit the scope of noncompete agreements ..read more

In a landmark move, the Federal Trade Commission (FTC) narrowly approved a ban on noncompete clauses, sparking significant debate and raising questions about the future of employment contracts. As a business lawyer, I’ve been closely following this development and believe it’s crucial to examine both the opportunities and challenges it presents for businesses. Key provisions under the ban to consider for existing noncompetes: Noncompetes may remain in effect after the effective date for senior executives (defined as a worker who was in a policy-making position and has annualized compensation ..read more

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