All Insights

Renewal: It’s the Most Wonderful Time of the Year to Review

The holiday season is often considered a time to celebrate and enjoy good company. It is also an ideal time to review your franchise agreement to determine whether your agreement will expire in the coming year. Many franchise agreements contain terms of five or 10...

Franchise News For Fall 2022

Developments are arising with regard to franchising in New York. Some of the franchise news stems from the North American Securities Administrators Association (NASAA), which as you will see below is an organization deeply embedded in the franchising process, and...

How Franchises Can Attract and Retain Talent

Business owners, franchisors, and franchisees are operating amid a labor market unlike any other in recent history.  Prior to 2020, technology and digital capabilities were already enabling (and challenging) employees to think about work differently. Then, the...

Who Sets Franchisees’ Prices? 

Despite its resilience, the franchise industry is still susceptible to inflation. With increased spending on goods and labor, some franchises are subtly boosting their prices and passing costs on to customers.  This is common for restaurant franchises. It was...

Dispelling Four Myths For Franchisees

There are many misconceptions about franchising that franchisees and business owners should know. These franchise myths often emerge from people who might be misinformed and websites that might be biased. Where your business is concerned, never let anyone give you...

State and Federal Resources for NY Franchisors and Franchisees

Spoiler alert for any franchising stakeholder: Lawyers do not have all the answers. At least not all of the time.  Whether you are an experienced operator, a new franchisor or franchisee, or an entrepreneur entering this exciting industry, you can look beyond...

Co-Branding Basics and Benefits

Have you ever passed or visited a restaurant or drive-thru that features two very recognizable, but entirely different brands? It could be a combination of Mexican food and pizza, or hot dogs and ice cream.  The merging of two franchises and their products under...

How Will The NYC Transparency Law Affect Franchisees?

When laws are passed that impact business operations, it is often up to the franchisee – who is considered an independent business owner – to stay on top of those new rules to avoid penalties, fines or litigation.  A new law regarding pay transparency in New York...

What Franchisors Must Know About New York Franchise Law

Establishing and selling franchises is complicated because both federal and state laws apply. Federal law establishes minimum disclosure standards for franchisors, but states may have additional registration and filing requirements which can vary significantly from...

Qualities of a Top Franchise Lawyer

Anyone considering buying their first – or next – franchise business will inevitably receive a franchise disclosure document (FDD) from the franchisor. The next step is to meet with a franchise lawyer to review the FDD, the franchise agreement, and other critical...

Four Franchise Renewal Tips

Franchisees have lots on their minds. Just maintaining a reliable staff and generating a profit is enough to keep an operator occupied. Understandably, most franchisees do not have the renewal process on their radar over the course of a standard agreement.  But...

FDD Item 20: Strategizing Your Questions

We have established the importance of the Franchise Disclosure Document (FDD), which franchisors share with prospective franchisees early in the due diligence process. There are 23 items in the FDD that contain information about the franchisor, the franchise system,...

How Long Do Franchise Agreements Last?

All franchise agreements have different terms. What works well in one system may not be appropriate in another. The term and renewal provisions of the franchise agreement set forth the length of the relationship. There are advantages and drawbacks to an agreement of...

Five Franchising Industry Trends You Should Know Now

Franchising is always evolving. New trends are emerging in the way products and services are offered and what drives growth beyond sales and behind the scenes.  Below are five franchising industry trends franchisors and franchisees should be aware of as they look...

The Laws And Regulations That Protect Franchisees

There are franchise laws and regulations that protect franchisees from being defrauded and unfairly losing their investment. Today we will provide brief overviews of the FTC Franchise Rule, State Disclosure Laws and State Relationship Laws. By understanding how these...

Initial Franchise Fee vs Royalty Fee: What’s The Difference?

Two of the most common costs associated with franchising are initial franchise fees and royalty fees. Franchisees – especially those new to franchising – need to understand the differences between the two and why they are so critical to the launch of a location. ...

How Franchise Consultants Can Aid Franchisees

Franchise consultants provide useful services for franchisors and franchisees. Sometimes referred to as “franchise brokers,” they have insight that can ultimately help both parties and expand the presence of the brand.  For a prospective franchisee seeking to...

What Does It Take To Be A Franchisor?

Two important questions to consider when deciding whether to take the leap into franchising your business: 1. Should you franchise your business? 2. Are you ready to franchise your business? You have a great business. Things are running smoothly, and you are making...

What Is The Effect Of Signing The FDD Receipt

One of the first steps involved in buying or selling a franchise is the sharing of the Franchise Disclosure Document (FDD). Under federal and state law, the franchisor must give the FDD to a prospective franchisee. The FDD is intended to help ensure that franchisees...

Should I Franchise My Tutoring Business Now?

Tutoring is a booming business. In the U.S., it is reportedly a $4.9 billion industry. It is considered to be relatively recession-resistant in that parents are reluctant to cut education services to help their children. While in-person tutoring is likely to continue...

Ongoing Legal Compliance For Your Franchise Explained

Your franchise has launched, and you are actively marketing and selling to franchisees in compliance with all applicable laws. There is no more need for legal advice or so you think. However, under federal and state franchise laws, there are ongoing registration and...

Understanding Franchise Fees and Payments

Before you buy a franchise, it is important to understand what costs will be associated with starting and maintaining it. The franchise disclosure document (FDD) contains information about what fees you must pay to the franchisor and other third-parties. These should...

Beyond The Pandemic?

Discovery Days for franchises were developed as an opportunity for both franchisors and potential franchisees to get to know each other and decide whether they are a good match. Traditionally, they have involved in-person meetings conducted at the franchisor’s...

Quick Facts About Multi-Brand Franchise Development

Experienced franchisees often look to expand their business by becoming area developers, purchasing the right to open multiple locations. However, where those opportunities are exhausted, some developers will begin acquiring franchise rights in other brands, often in...

What Franchisors Should Look For In A Franchise Consultant

Franchisors and franchisees can benefit from the services of franchise consultants. They help develop the franchise system and aid in the sales process by identifying qualified candidates. Franchise consultants have insight that can ultimately help both parties as...

Are Economic Recovery Loans or Grants Right for You?

The federal government created several economic relief programs to assist small businesses with recovery from the impact Covid-19 had on their solvency, stability, and profitability. Though the deadlines vary, several programs originally introduced in 2020 have been...

Do You Have Exclusivity Rights in Your Lease Agreement?

When leasing space in a shopping center, tenants should pay close attention to what exclusivity rights are in the lease agreement if any. Exclusive use clauses prohibit the landlord from leasing space in the shopping center to other parties for uses that compete with...

Are COVID-Friendly Drive-Thru Restaurants the Next Franchise Wave?

Drive-thru restaurants have always been a convenient and popular option for fast food. However, COVID-19 has had a demonstrable impact on the success of this model. According to Franchise Times, many drive-thru chains saw double-digit growth in 2020, including Jack in...

Are You Subject to Franchise Relationship Laws?

Franchise relationship laws regulate franchisor behavior after the purchase of the franchise. Generally, they establish limitations on a franchisor’s rights regarding terminating the franchise, failing to renew the franchise, or failing to approve a franchisee’s...

Is an Area Development Agreement Right for You?

If you think owning several franchises is a good idea, an area development agreement might be right for you. Unlike with single-unit franchises, an area development arrangement enables you to obtain the right to develop multiple locations within a designated...

It’s Time for 2021 Annual Updates to Your FDD

When the fiscal year ends, it is time for franchisors to start the annual process of updating their Franchise Disclosure Document (FDD). Under the Federal Trade Commission (FTC) Rule, franchisors are obligated to update their FDD within 120 days from the end of the...

Webinar: Multi-Unit Franchising Beyond the Pandemic

Despite the pandemic, franchising remains a popular option for many business owners. Franchising enables franchisors to rapidly expand a successful business model, while franchisees can take advantage of an established brand. A recent virtual roundtable hosted by...

What Happens to the Lease When a Franchise Terminates?

Leasing property for a franchise involves two different agreements – the franchise agreement and the commercial lease. The franchise agreement sets forth the franchisor’s rights and requirements with respect to leases signed by the franchisee. The lease terms must...