Listen to host Eric Dye & Julie Lusthaus discuss the following questions: Tell us about your current work with Lusthaus Law PC. What is franchising? What advice would you give a business owner looking to expand his or her business through franchising? What advice would you give someone looking to buy a franchise? What should a prospective business owner thinking of franchising or a buying a […]
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 filing obligations. These include the following: Annual Franchise Disclosure Document (FDD) Updates […]
As we start the new year, many people are thinking about getting fit as their resolution for 2020. The health and fitness industry in the U.S. generates more than $30 billion in revenue and is growing every year. A big part of that revenue is driven by franchises. Entrepreneur’s 2019 Franchise List includes five fitness brands in […]
Franchise sales laws are highly specific. It is essential to have the assistance of an experienced franchise attorney to help ensure compliance.
Item 11 of the Franchise Disclosure Document is where franchisors are required to outline their obligations to help support franchisees before and after operations begin. Part of this assistance involves loaning the franchisee a copy of the franchisor’s operations manual (“Operations Manual”). The Operations Manual is a detailed document containing information on the standards and […]
Before deciding whether to make financial performance representations, franchisors should consider these things.
At this year’s 42nd Annual Forum on Franchising, Julie Lusthaus co-presented a workshop entitled “Buying and Selling a Franchised Business, Guiding a Franchisee through the Process.” The presentation discussed: “Representing a client buying or selling an existing franchised business is a complicated process, involving myriad legal issues and business considerations. In addition to the traditional […]
Item 7 of the Franchise Disclosure Document (FDD) requires franchisors to set out in a prescribed tabular format a franchisee’s estimated initial investment – i.e., all the expenses required by the franchise agreement and all other costs necessary for a franchisee to commence business. These costs go beyond the fees in Item 5-Initial Franchise Fees […]
There are 4 main types of franchise models for business format franchising: Single Unit, Multi-Unit Development, Conversion, and Master Franchise. We discuss the benefits of each for a prospective franchisor.