Archive | Franchisee 101

Franchisee 101

Franchisees – Say No To Uniform Pricing and Promotion Mandates

After Steak N Shake Enterprises, Inc. (“SNS“) entered into 5 franchise agreements (the “Franchise Agreements“) with Stuller, SNS adopted a policy (the “Policy“) requiring franchisees to “follow set menu and pricing …, and to offer all company promotions as published.” Stuller refused to comply with the Policy because, Stuller said, compliance was not required under […]

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Relief From Shakedown Law Suits

Running a franchised business in California just got a bit easier. On September 19, 2012, SB 1186, a bill designed to help stop “shakedown lawsuits” and to encourage greater compliance with the Americans with Disabilities Act of 1990 (“ADA”) became law. The bill was a bipartisan political breakthrough, which was supported by franchisees, other small […]

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Taxes, 2013, and Selling Your Franchise

Franchisees are business owners and operators, as well as investors. Think about it: when you bought your franchise, you hoped to make money along the way, but you also hoped to sell your franchised businesses some day for a profit. Timing is everything when it comes to selling any investment, and so it is with […]

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Franchisor Bankruptcy: Surviving The Unthinkable

If a franchisee defaults on its obligations, most franchise agreements allow the franchisor to terminate the agreement. But what happens if the franchisor defaults on its obligations to creditors? This circumstance is rarely addressed in franchise agreements, but that doesn’t mean it can’t happen-it does. Franchisors are not immune from tough economic times. For example, […]

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Negotiating a Lease

If you think signing a franchise agreement is hard on the nerves, wait till you have to talk with a landlord about a lease. Why? Because the terms of your lease can spell success or failure as easily as your franchise agreement can, and in negotiating a lease you won’t have the protection of state […]

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Pain At The Pump

Read the Franchise Disclosure Document and Franchise Agreement carefully and understand the risks of early termination, before signing up! That is the lesson to be learned from 2 United Oil, et al. v. BP West Coast Products, LLC, et al. BP West Coast Products, LLC (“BP”) leased 261 gasoline station sites under a Master Lease with […]

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