Have You Been Given a Current FDD? Why does it matter? To sell a franchise in the United States, the franchisor must give all prospective buyers a Franchise Disclosure Document (FDD) that is required by the Federal Trade Commission. The FDD is not filed or reviewed by the FTC, but some states require that it […]
Sometimes You Should Just Say No
… because franchise agreements can look just like credit card agreements. I started reviewing and writing franchise agreements, even before I moved to Texas in 1989. When I first got here, franchise agreements seemed pretty balanced to me. It was standard practice to use phrases like “[franchisor] shall not unreasonably withhold its consent…”. Nowadays the […]
Negotiating a Franchise Agreement? Let’s Make a Deal
If you are new to the world of franchising, you may be surprised to learn how rigid and inflexible the franchise “rules” can be. It seems inconsistent with a business format that is praised as an avenue for creativity, entrepreneurship and the potential for rapid cost effective expansion. A great example of this is the […]
Saying It’s Not A Franchise Doesn’t Change Things
Whether buying or selling, there are two schools of thought: 1. Being a franchise is good; or 2. Being a franchise is bad. Why good? It has become a more understood method of expansion. It is true, you can grow a business using other people’s money. You can buy a “proven” concept with support and […]
Problem Franchises: Delays Have Dangerous Ends
When business is good and the franchisor-franchisee relationship is positive, the contract doesn’t matter. If things goes south, it’s all you have. Too often franchisees are so caught up in the struggle to make their business profitable and keep it going, that they put off addressing core problems involving the franchise. They just cannot seem to find enough time to deal with difficult underlying issues.
