Tag Archives | Franchises

If At First You Don’t Succeed, Try, Try Again

Undeterred by last year’s disappointments, franchisees in the Golden State have regrouped this year and mounted a new offensive designed at passing franchisee favorable legislation in California. Last year, Assembly Bill 2305,The Level Playing Field for Small Businesses Act of 2012 (the “2012 Act”), was introduced in the California Assembly. The 2012 Act sought to revise California’s […]

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Reporting Sales and Paying Taxes: A Double-edged Sword

Typically, franchise agreements require franchisees to comply with all civil and criminal laws and provide that franchisees will be in default under their franchise agreements if any of their franchise owners commits a felony or other offense that is injurious to the “System” or the franchisor’s marks. In Dunkin’ Donuts Franchising, LLC v. Oza Bros., Inc., Dunkin received […]

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Exploring Exemptions Under California’s Franchise Investment Law – Part 2

Franchisors claiming exemptions must be certain they truly qualify-a determination that can sometimes be difficult. As pointed out in last month’s discussion, some California franchise investment law exemptions relieve the franchisor from registration and presale disclosure requirements, while others merely excuse the franchisor from registration. These exemptions release a franchisor from both requirements: A:       Experienced Franchisee […]

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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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Exploring California’s Franchise Exemptions – Part 3

Last month we looked at four exemptions franchisors use to avoid the registration and presale disclosure requirements of California’s Franchise Investment Law. Several lesser known exemptions that can be used by franchisors are:  A.  Fractional Franchise Exemption: An offer is exempt from registration and disclosure if: 1) the purchase involves adding a new product line to the […]

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Franchise Friendly – Georgia?

When you think of franchise friendly states, do you think of Georgia? Starting July 1, 2012, franchised businesses and entrepreneurs considering a franchise model might want to take a closer look at that state. The “misclassification” of employees as franchisees has been a hotly litigated issue of late. Classification matters because it determines whether the […]

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Franchises Faring Better in Recession

Recessions are no fun for businesses of any kind, and the current downturn has exacted a heavy toll among small businesses in particular. Recession or no recession, however, franchises seem to do better than non-franchise businesses, according to recent data from several sources, so if you’re thinking of launching yourself as an entrepreneur, give the […]

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