New York and Rhode Island Little FTC Acts

In Safe Step Walk in Tub Co. v. CKH Industries, Inc., S.D.N.Y., Bus. Franchise Guide, CCH, ¶15,940, the court found that a seller and installer of walk-in bathtubs in the New York and New Jersey area could qualify as a franchise under the franchising laws of New York, New Jersey, Connecticut, and Rhode Island. As […]

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What is Franchisor Fraud? When Are Misleading Statements Actually Fraudulent?

Let’s take a look at some advertising language that franchisors use to entice potential franchise buyers.  After all, these advertisements are often the sole reason a prospective franchisee reaches out to a franchisor in the first place. “Own your own business by owning a franchise.” “We want to share our successful franchise opportunity with a […]

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Understanding Franchisee Business & Agreements

Owning a franchise has become a popular alternative to many standard business models in today’s market and has many promises to success. However, there are important aspects of understanding the franchise business to keep in mind before you sign any contracts. One of the most important factors to consider is the fact that, ultimately, the […]

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What Is My Franchise Worth?

Franchisees need to determine the value of their franchise business for a number of reasons.  It may be important in order to obtain a bank loan for the business or for personal purposes; it is relevant for tax and estate planning; and, of course, it is critical to know the value of a business when […]

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What Should I Ask Franchisees?

Prospective franchisees frequently overlook one of the most important elements in a franchise disclosure document.  It is buried in the back and seems not at all substantive, but it is invaluable:  the lists of current and former franchisees.  These lists can be used to glean information from people that are currently operating as franchisees or […]

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Tax Franchisor Breach of Contract Renewal: What Constitutes a Lawsuit?

On Jan. 27, 2017, the United States District Court for the Northern District of New York weighed in on the issue of whether a tax preparation business franchisor was entitled to choose, without cause, to not renew its franchise agreement with a franchisee that provided for automatic renewal every five years. In H&R Block Tax […]

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Can I Sue My Franchisor?

Whether or not you, as a franchisee, can assert claims in a lawsuit against your franchisor is a loaded question.  On one hand, the answer is yes; you can sue anyone for anything at any time – it doesn’t mean you’ll win or that the case will go anywhere, but you can.  On the other […]

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What is a general release? Why does it matter to franchisees?

A “general release” is a document in which one person releases another from any claims or threats of lawsuits.  Franchisors often require franchisees to sign general releases at various points in the relationship to insulate themselves from franchisee lawsuits.  If, as a franchisee, you have signed a general release, in all likelihood you will not […]

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Online Franchising Pros & Cons

Many aspiring entrepreneurs turn to franchising to jumpstart their careers in the business world. An industry newbie can benefit from the well-established market, reputation, and business model of an existing franchise. With training and support from the company, a franchiser can use this opportunity as a launch pad from which to grow the business even […]

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Can I Terminate a Franchise Agreement?

Franchisees that contact us frequently ask if they can close the franchise and continue operating an independent business in the same industry.  The short answer in the majority of cases is, unfortunately, “no.”  But with good advice from a franchise lawyer, a franchisee may be able to avoid the non-competition agreement. Many franchisees do not […]

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