Franchise Feed

Insights and Information for Franchisors

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The second webinar in the Franchise Feed series, presented by two of our franchise friends, SHERRI SEIBER and GEOFF SEIBER, the COO and CEO, respectively, of FranFund, the leading full service funding solution focused exclusively on the franchise community. Franchise finance is the lifeblood of franchise development. Accordingly, it is important for franchisors and franchisees alike to understand the current financing environment and the tools available to help franchisees fund their franchised businesses. https://youtu.be/_FW5XIoL7G4…
Most franchisors need to amend their FDDs in 2020 to account for the devastating impacts of COVID-19.  Are you one of them? In this webinar you will learn about: “Material changes” and when they warrant an amendment Recent guidance from state regulators about COVID-19 amendments Potential penalties and complications in 2021 resulting from failure to amend in 2020 Best practices for updating your financial performance representations and more…
Businesses are increasingly defined by the technologies they use internally or that they offer to their customers; franchisors are no exception Technology is interwoven into the way that businesses think about themselves and the world. For example, Amazon famously declared itself first a technology company that “just happens to do retail.” Developments in technology distinguish companies from their competition and open new growth opportunities. Your franchise business likely depends of an array of systems to…
Items 5, 6, and 7 of a Franchise Disclosure Document (“FDD”) are all about money – how much the franchisor charges for the goods and services it provides franchisees before the franchised business opens, how much the franchisee will pay to the franchisor throughout the business relationship, and how much the franchisee will need to invest to open the business. After reading Items 5, 6, 7, the franchisee must understand how much things cost, how…
Your trademark is a critical asset in your franchise system. You work hard to cultivate the brand associated with the trademark and you carefully monitor how your franchisees and competitors use your trademarks. Registering your trademark with the U.S. Patent and Trademark Office gives you additional legal protections for this valuable intellectual property.…
How to Avoid Litigation in Franchising There is a host of issues that can arise in a relationship between a franchisor and a franchisee. If not properly addressed, some of these issues can mushroom into legal sparring or even full-blown litigation. Common issues include the enforcing of system standards, franchisees performing below their and/or the franchisor’s expectations, adapting to changes in the marketplace, diverging values and principles, or compliance with federal and state laws that…
Developing a Social Media Policy for Franchise Systems Effective use of social media is challenging for any business, but creating a strategy that works for an entire franchise system can be even more difficult.  Once that strategy is developed, it needs to be supplemented with a social media policy that protects you and your franchisees. Below are four things to consider as you develop a social media policy.…
You have worked hard to grow your business and brand.  The last thing you want to do is give it all away.  A carefully drafted non-competition agreement can protect your brand and trade secrets. Well-drafted, enforceable non-compete agreements include the following elements: Narrow List of Prohibited Activities Courts are increasingly focusing on balancing former franchisees’ right to work against franchisors’ interests in preserving its trade secrets and protecting its brand from unfair competition.  For this…
COVID 19 undoubtedly impacted your business. Franchise systems in a wide array of industries experienced temporary closures, forced innovation in the delivery of goods and services, and altered unit economics. Some of these changes may qualify as “material” changed under state and federal law and will need to be accounted for in an amendment to the 2020 FDD.  The federal and state requirements are outlined below and will help you to determine if and when…
The FTC Rule allows some franchisors to be exempt from the franchise disclosure document requirements. There are seven stated exemptions, and some of them are tied to certain monetary values. The FTC is authorized to adjust them every fourth year based upon the Consumer Price Index so that the laws are still relevant in changing economic conditions. The Commission is required to update the monetary exemption thresholds in 2020. The following adjustments will go into…