I have often heard that franchisee consultants/brokers are concerned about recommending the services of an attorney to their candidates. They are concerned that the deal that they have worked weeks or months to bring to fruition will be broken by the concerns of an...
You have decided to invest in a franchise opportunity. Why is it important that you retain an experienced franchisee attorney to evaluate the franchise documents? The answer to that question is simple. 1. Complex laws – franchise law is a complex series of...
When reviewing a commercial lease, particularly for a retail space, you will notice that typically a tenant will be required to pay base rent and additional rent or CAM (Common Area Maintenance Charges). What is the difference between base rent and additional rent?...
Deciding on the Terms of Your Franchise Once you have decided to start a franchise business, you have a number of decisions to make, such as: What should be the amount to charge for the initial franchise fee and royalty payments Which companies will be authorized...
If you are entering into a lease in Pennsylvania, you most likely encounter a clause in the lease (in bold and all caps) called “Confession of Judgment”. There are typically two types of Confession of Judgment clauses – one for rent, and one for possession....
Frequently I am contacted by someone who is not only investing in a franchise opportunity, but also simultaneously buying an existing business that is part of that franchise. If you are in that situation, it is important to realize that there are two facets of this...
Want to avoid franchise fiascos? While by no means risk free, franchising can offer a shortcut to business success. Read the article reprinted from The Costco Connection in which Nancy Lanard provides suggestions to follow when investing in a franchise. The article...
Prior to even commencing on drafting an FDD, the prospective franchisor should have applied for a federally registered trademark with the U.S. Patent & Trademark Office (USPTO). It can take 9 months or longer to obtain a registration with the USPTO, so it is...
The difference between a franchise and a business opportunity is quite often confused and cause serious issues for the business if not handled properly. Both a franchise and business opportunity have federal and state regulations that govern them. Failure to properly...
As an attorney who represents individuals looking to invest in a franchise opportunity on a daily basis, I am often asked what are some ways I can lessen the business risk. I would suggest the following: 1. Speak to as many franchisees in the system as you can. They...