Tag Archives | Franchising

Beer & Wine Franchisees Enjoy Protection From Termination

Many states, including California and Ohio, have laws protecting beer and wine distributors from the arbitrary termination of their distribution agreements by their manufacturers. Ohio’s Alcoholic Beverage Franchise Act (the “Act“) allows a successor manufacturer that acquires all or substantially all of the stock or assets of another manufacturer to terminate a distribution agreement upon 90 days […]

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It’s That Time Again – Renewal Season 2013!

Each franchisor must renew the registration of its franchise disclosure document (FDD) annually. The rule in most registration states, as well as under the FTC’s Franchise Rule, which governs the sale of franchises in the non-registration states, is that a franchisor must update its FDD within 120 days of its fiscal year end, or discontinue […]

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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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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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Franchising 101

So, you want to have your own business? Make a good income? Control your future? Franchising may be the ticket. Small business powers the American economy in good times and bad, but these days, the risks associated with starting your own business are greater than ever. This makes franchising a good choice for many entrepreneurs, […]

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