All Insights

11 Questions to Ask a Potential Franchisee

As a franchisor, you know that clear communication matters. This is particularly important when one is considering entering into a relationship with a potential franchisee. So, consider making a face-to-face or video call interview a part of the franchise sales...

7 Common Franchisor Problems

The franchise structure can give you a leg up in building your business. But if you are not prepared to face the following common problems, they could easily derail your company. A franchise owner must know how to handle finances, taxes, people and day-to-day...

How do businesses develop?

Are you considering starting a business? Want to know what that process can be like? The good news is that you can benefit from the experience of those who have gone before you. According to an article in Inc.com, there are seven stages of growth for every business....

Independent Franchisee Association for McDonald’s Franchisees

In an earlier blog post, we wrote about the benefits to franchisees in forming an association and outlined how to go about doing so. Recently, a group of McDonald’s franchisees did just that. According to a recent article by Nancy Luna in Nation’s Restaurant...

What do you need to know before you sell your business?

How-to prepare your business for sale Before you can sell your business, your paperwork must be in order. This means compiling your company’s financial information, vendor contracts, customer information, employee job responsibilities, etc. Depending on your...

Court Says Servers and Bartenders are Entitled to Full Minimum Wage

Whether you operate a standalone diner or multiple, fast casual restaurant franchises, pay attention to this potential wage exposure. Do you have to pay servers minimum wage? Maybe. A federal appeals court in California has determined that servers, bartenders and...

What do franchisees need to know about leases?

What do franchisees need to know about real estate? What do franchisees need to know about leases? Plenty. You’ve bought a franchise and have attended the franchisor’s training. You have located what you believe will be the perfect location for your business. The landlord has presented you with a lease for your new space. Now […]

The 23 Items In Your Franchise Disclosure Document

Thinking about expanding through franchising? Then, one of the first things you will need to do is have a franchise disclosure document (FDD) prepared. Second, you will have to register that FDD in the states that require registration, and then, as a franchisor, you...

Is your franchise system a “no poaching zone?”

New York Times Reporter Rachel Adams recently wrote about a group of states attorneys general investigating whether some fast food franchisors were forbidding franchisees from hiring the employees of others in the same system. The attorneys general, including those...

What laws apply when terminating a franchise?

In our previous blog, we discussed disclosure laws. Today, let’s take a closer look at “franchise relationship laws.” What does “franchise relationship” mean? Picking up from Blog Part One, it must be understood that franchise laws and regulations were enacted to...

What laws apply when selling a franchise?

Selling a franchise? Be prepared because when it comes to selling a franchise, there are many laws regulating every sale. First to consider are the disclosure laws. What is full disclosure? Before selling even a single franchise in the United States, every franchisor...

Is McDonald’s responsible for franchisees’ labor risks?

Are the employees of your franchisee your employees too? That’s the question National Labor Relations Board General (NLRB) Counsel Peter Robb sought to avoid when he proposed the March 19, 2018 settlement agreed to by McDonald’s. The answer could have had broad impact...

How strong is the franchise sector?

Pretty darn strong! According to the 2018 Franchise Business Outlook Report issued by the International Franchise Association (IFA), the franchise sector is expected to grow faster than the rest of the U.S. economy. In 2018, franchise establishments are expected to...

How much does food waste cost your restaurant?

Whether you are a single store or multi-location franchise restaurant operation, food waste is costing you money. Lots of money. That’s according to a report by non-profit ReFED, a collaboration of over 50 businesses, nonprofit, foundation and government leaders,...

How-to grow your business with “other people’s money”

You’ve got a great business. You may even have a budding multi-store operation. You’re ready to move into the big time. Great! But one thing is holding you back: Cash. Or the lack thereof. Can you grow a business without much capital? Seems like an easy, “nope!” But...

Convenience and the Difficulties with Delivery (Restaurant Franchises)

These days, restaurant consumers have come to expect convenience and are increasing their demand for delivery options. More and more, they are demanding speed and reliability. For restaurants in the business of food service, the issue of delivery can no longer remain on the back burner. As discussed, in an article by Ron Ruggles in […]

Do You Need a Franchise Owners’ Agreement?

You are a successful restaurateur, managing and running multiple eateries in multiple locations for several years. You started with a single location. It opened and was a hit. So you opened a second restaurant in a different location which turned out to be just as...

Are you selling franchises or partnerships?

Part 2 of 2 You are a successful restaurateur, managing and running multiple eateries in multiple locations for several years. You started with a single location. It opened and was a hit. So you opened a second restaurant in a different location which turned out to be...

Are you selling franchises or partnerships?

Part 1 of 2 You are a successful restaurateur, managing and running multiple eateries in multiple locations for several years. You started with a single location. It opened and was a hit. So you opened a second restaurant in a different location which turned out to be...

Independent Franchise Associations = Power in numbers

“The whole is greater than the sum of its parts.”— Aristotle You’ve just acquired a franchise and suddenly you are part of a much larger organization. Or are you? Are you one voice among many or are you an integral part of a cohesive, integrated group? How do you make your voice heard? Who do […]

Buying a franchise? Do the math!

Visit the dairy counter of any supermarket and what do you see? Gallons of milk, cartons of yogurt, cheese, etc. Each carries a clearly marked price tag: $1.99, $0.75, and so on. What you don't see are the extra costs that show up when you check out at the register....

Buying a franchise? Check out Item 20. (And check references!)

Buying a franchise? History matters. And in this instance, history means references. So check them out. Really. Checking references -- contacting others currently in your franchisor's stable, or who have left the franchise system for one reason or another is a key...

Can Your Franchise Agreement Be Negotiated?

"Everything is negotiable. Whether or not the negotiation is easy is another thing."-- Carrie Fisher Carrie Fisher was right. Not only is everything negotiable, it's also legal! Even when the franchisor's salesperson sitting across the table from you...

Buying or selling an existing franchise? Did you think about…

Most of the time, the road one takes to either sell or purchase a business is a straight one, with few bumps or potholes. Sellers typically decide they want to sell. Sometimes they hire a broker as an intermediary. Sometimes they don't. But ultimately, for every...

Licensing v Franchising, a Distinction Without a Difference?

Looking to expand your business? What's the best strategy? License your trademark? Or franchise the entire business process? How do you distinguish between these two options? The first step to making an informed decision about whether to grow your business by...

Want to franchise your business?

If you have a successful business that can be duplicated and you want to expand your geographic reach, you will want to consider franchising. Generally, franchising is a method whereby the franchisor gives franchisees a license to use its brand, i.e. trademarks, and...