All Insights
February 2023, Julie Lusthaus presenting Best of the Forum ABA Webinar
On February 21st, this workshop "Hitting Refresh: Updating Your Franchise Agreement to Reflect the Times" will explore areas of a typical franchise agreement that are ripe for updating or modifying based on the world in which we currently live; both for franchisor...
February 2023, Julie Lusthaus Participating In Strafford Webinar
This CLE webinar on February 7th will provide guidance to business counsel on how to negotiate and draft franchise agreements and ancillary documents. The discussion will include key issues for counsel to consider when advising clients concerning key provisions in the...
New Tech Could Serve Up Change For Franchises
The traditional experience of restaurant dining has shifted in recent years, due to the emergence of third-party delivery and app-based ordering, which was crucial during the ongoing pandemic. But franchise dining was already trending in this direction prior to 2020...
Update Your FDD in 2023
Top FDD Renewal Questions Answered Franchisors are required to update their Franchise Disclosure Documents (FDD) annually as a matter of law as well as when there is a material change to the information contained in the FDD. Franchisors can also choose to update their...
The New Trademark Law Impacting Franchising
The United States Patent and Trademark Offices (USPTO) defines a trademark as “any word, phrase, symbol, design, or a combination of these things that identifies your goods or services.” The use of a trademark is critical for franchises as well as nearly any...
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...
To Franchise or Not to Franchise: Considerations For Expanding Your Business
Business owners are often in a unique position if they are considering expanding their brands through franchising. Determining the method of expansion should involve research and some honest conversations among shareholders. When done well, franchising enables...
November 2022, Julie Lusthaus to speak at the 45th Annual ABA Forum on Franchising
During the 45th Annual Forum on Franchising, Julie Lusthaus and others will walk you through the areas of your franchise agreement that may require updating to reflect current economic realities on November 2-4. Click here to sign up for this event.
Important Details Multi-Unit Operators Must Know About Territory Rights
Imagine you are an area developer or multi-unit operator, and you have found an ideal territory where there is a demand and/or tremendous potential for your franchise. Before negotiating the area development agreement with the franchisor, there are some details you...
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...
June 2022, Julie Lusthaus appointed as a Member to the NYSBA Business Law Section Executive Committee
Effective June 1, 2022, Julie Lusthaus was appointed as a Member to the NYSBA Business Law Section Executive Committee on behalf of the Franchise, Distribution and Licensing Committee of the NYSBA Business Law Section. Click here for more information.
How NY Franchise Business Owners Can Broaden Their Networks and Knowledge
We recently discussed some key state and federal websites and agencies that are readily accessible to NY franchisors and franchisees. Today, we will explore some of the organizations, associations, news outlets and research groups you can join or consult to better...
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...
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...
April 2022, Julie Lusthaus Named Franchise Times Legal Eagle For 9th Year In A Row
2022 marks Lusthaus’ ninth consecutive year honored as Legal Eagle. Click here to read more about this outstanding achievement.
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...
What Restaurant Franchisors Should Know Before Establishing Ghost Kitchens
Restaurant franchises were forced to reevaluate traditional dine-in and takeout experiences in the wake of the pandemic and to cater to a changing consumer base. Some franchise systems met these evolving needs by establishing ghost kitchens, a non-branded unit devoted...
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...
October 2021, Julie Lusthaus To Speak At The American Bar Association 44th Annual Forum On Franchising
Julie Lusthaus will speak at the American Bar Association 44th Annual Forum on Franchising. Click here for more information.
October 2021, Julie Lusthaus Listed In Westchester Magazine’s Best Lawyers And Ones To Watch In 2021
Julie Lusthaus of Lusthaus Law, P.C. was featured in Westchester Magazine's 2021 edition of Best Lawyers and Ones to Watch. Click here to learn more about this achievement.
September 2021, Julie Lusthaus Listed In 2022 edition of The Best Lawyers In America
Julie Lusthaus was featured in the 2022 edition of The Best Lawyers in America by bestlawyers.com. Click here to learn more about this achievement.
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...
How Covid-19 Is Impacting State Registration And Filing Deadlines For Franchisors
As the coronavirus spreads across the U.S., the federal and many state governments are providing relief to businesses by extending the deadlines on various filings. Among the areas receiving attention are state registration and filing deadlines for franchisors....
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...
Are Franchisees Required To Use Designated Suppliers Of Franchisors?
Franchisors have the right to designate what products and services franchisees must use in the operation of their businesses. This ensures they meet the franchisor’s standards and the suppliers have been properly vetted. While franchisees can be required to use...
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...
Franchise Unit Or Independent Business? Deciding The Right Purchase For You
Many clients have come to Lusthaus Law P.C. because they want to create their own professional and financial destinies by buying an existing independent business or franchise. Some were inspired by a great product and others researched economic and market reports and...
What You Need To Know About Buying A Commercial Cleaning Master Franchise
According to Statista, the commercial cleaning market was valued in 2020 at an estimated $72.66 billion in the United States, and projected to rebound to a pre-COVID level of nearly $75.6 billion in 2021. As businesses reopen, commercial landlords and owners will...
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...
April 2021, Julie Lusthaus Named Franchise Time’s Legal Eagle For 8th Year In A Row
2021 marks Lusthaus’ eighth consecutive year honored as Legal Eagle. Click here to read more about this outstanding achievement.
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...