Franchise accounting is an area with many nuances. As times change, so do the regulations and guidelines that franchise accountants follow. Over the last several years, ASC 606 has been going through several stages of implementation in the franchise world. For public...
Together Let's Make Your Business Dreams A Reality SM
Franchise Law
Choosing the right business entity as a franchisee
Purchasing a franchise can be the beginning of an exciting journey. You have the opportunity to invest in a proven brand while creating a business for yourself. Becoming a franchisee is not without its complexities. Part of investing in a franchise is choosing the...
Understanding the IFA litigation against California regarding AB-5
In a previous blog, we discussed the recent California legislation (AB-5) and the consequences it could have on franchises in The Golden State. Late last year, the International Franchise Association (IFA) filed a complaint against the State of California for...
Misclassification rules on franchising and the impact on franchisees
Legislation that impacts franchises can be an ever-changing landscape. Just as franchising continues to adapt to new markets and ideas, legislation changes in ways that frequently alters how franchises operate. In 2019, legislators in California discussed a bill...
What does the recent joint employer ruling mean for franchisees?
Employees can be an essential part of operating your franchise. Along with managing employees comes dealing with issues governed under the federal Fair Labor Standards Act (FLSA). Recently, the Department of Labor (DOL) changed its rule regarding when two employers...
What are the differences between the FDD and the franchise agreement?
Similar to other large purchases, becoming a franchisee requires entering into many complex legal documents. While the agreements and disclosures are often lengthy, they are important legal documents that should be evaluated. Two of the most important documents are...
A brief history of franchise law
I bet you are wondering why a sewing machine is the cover image of an article on the history of franchise law. Keep reading to learn more. Over the centuries, people developed the concept of franchising to expand businesses in a way that could spread risk among the...
A franchise lawyer is different than a business attorney in important ways
While all franchises are businesses, hiring a general business lawyer to handle franchisee issues can be a costly mistake. A knowledgeable franchise lawyer will have extensive experience with state and federal franchise laws, understands a franchise disclosure...
Common franchise red flags
While a franchisor has certain disclosure obligations that are required by federal and state laws, they are also interested in selling their franchise. In some cases, a franchisor may paint an unrealistic picture of what owning a franchise in their system is like....
Evaluating a promise of earnings
Investors who buy a franchise should be wary of a franchisor’s guarantee of making a large amount of money quickly. Nonetheless, the franchisor may disclose information about potential sales and income known as an earnings claim or financial performance representation...