How to Terminate a Franchise Agreement the Smart Way

June 30, 2017

So you want to close your franchise? You’re not alone. A survey of more than 1,100 franchise owners across various industries in around late 2014/early 2015 showed that more than half of franchise owners do not think that they make a fair profit, 91 percent were in debt, and around 66 percent operated at a […]

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What Do Successful Franchises Have in Common?

June 26, 2017

If you are considering becoming a franchise owner, you may wonder what the signs are that a franchise will be worth your investment. The way that franchises survive is by replicating the success of the original business, which gives franchisees a plan to follow to their own success. For those who have the entrepreneurial spirit […]

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Why the “Family Feel,” or “Oral Contracts” in Franchising is a False Hope

May 23, 2017

Many franchisees purchase a particular franchise because they believe that the people working at the franchisor’s office and the franchise system’s founders are “good people,” and have a “family feel” in how they run the business. The problem, however, is that franchisors, like any other business, may be bought and sold. For example, the jovial […]

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The Effects of a Strong Franchise Brand

May 9, 2017

Branding is one of the most important and powerful components of owning a franchise business. When you think of branding, it should go beyond a memorable logo or a catchy jingle. Branding affects your customers’ experience everywhere from your website, to your social media interactions, to the way you talk to customers on the phone. […]

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New York and Rhode Island Little FTC Acts

April 28, 2017

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?

April 18, 2017

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

April 11, 2017

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?

April 5, 2017

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?

March 28, 2017

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?

March 24, 2017

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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