Lessons from the Court: Future Royalties are not Forever

February 9, 2012

Franchising is a time based commitment.  The franchisor and franchisee enter into a franchise agreement with a term of  5, 10, 12, or 20 years.   What happens if the franchise agreement is cut short?  Cut short by the default of the franchisee.  Relying on basic contract law, Franchisors may seek recovery of future royalties fees.   Future royalty fees are fees that [...]

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Lessson from the Court: I have an arrest record, but I CAN do the job.

February 2, 2012

This  week it was announced that Pepsi Beverages has agreed to pay $3.1 million to resolve racial discrimination claims steaming from their employee background check practices.  The Pepsi settlement is a great intro to a discussion about background checks.  As the settlement shows, background checks can be a huge legal nightmare.   Despite the legal nightmares, the practice of doing background checks is widespread and even required [...]

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A Post from the Field: Wait! Don’t Sign that Franchise Agreement Yet!

January 26, 2012

Whether I am working with someone looking to buy a franchise or a franchisor looking to sell a franchise, there is a feeling of immediacy to getting the franchise agreement signed.  The franchisee is excited about starting his/her business and the franchisor is excited about having a new franchisee on board.  But hold it.   The [...]

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Lessons from the Court: How Can I be Bound by a Non-Compete, I DID NOT SIGN IT…..

January 19, 2012

The signing of non-competes in the world of business is almost standard protocol.  Employers ask employees to sign non-competes.  In the sale of businesses, buyers ask sellers to sign non-competes.  And, Franchising is no exception.  Almost universally, Franchisors require Franchisees to sign a non-compete when acquiring a franchise.  But, how far will courts go to [...]

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‘Tis the Season for Diet Programs, Gym Memberships, Taxes and……FDD Updates

January 12, 2012

Retailers are moving Christmas ornaments to the clearance aisle and yoga mats to the front of the store. Television channels are airing Weight Watcher® commercials featuring Charles Barkley. Accountants are all a bustle preparing for tax season. And YES, franchise attorneys, including myself are getting ready, too. Franchisors are required to update their (FDD) 120 [...]

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Lessons from the Court: $355 Million. Price-fixing can be expensive.

January 6, 2012

On December 29, 2011, it was announced that 6 makers of TFT-LCDs panels  agreed to enter into a $355 million settlement with consumers to resolve antitrust, price-fixing, and other claims.  The case is IN RE: TFT-LCD (FLAT PANEL) ANTITRUST LITIGATION.  As articulated on counsel’s website ”from at least January 1, 1996 through December 11, 2006, Plaintiffs allege that defendants operated [...]

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NEWS FOR YOUR BUSINESS: Employer Union Notice Delayed, Again….

December 29, 2011

In December of 2010, the Federal National Labor Relations Board (NLRB) enacted a rule requiring employers to post notice to their employees outlining their right to collectively bargain, unionize,  and strike. A excerpt from the required notice is below:    The notice requirement extends to most private sector employers including retailers, non-retailers, and suppliers with [...]

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Lessons from the Court Room: Use our Software or Forfeit your Franchise

December 22, 2011

Software Discord:  As part of franchise brand standards, franchisors stipulate system-wide software and franchisees take issue: ‘The software fees are too high; if I use the software, the franchisor has access to my consumer information; there are better alternatives.’  But what happens when a franchisee refuses to adopt the franchise brand software?  That was the [...]

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Lessons from the Court Room: He quit and took his twitter followers with him!

December 15, 2011

Social Media is the engine of today’s marketing.  Whether FaceBook, LinkedIn, Yelp or Twitter, companies are enmesh using social media to drive business.  That is exactly the case of PhoneDog.  PhoneDog is in the business of reviewing the latest mobile products and offering users the resources to compare prices and shop from various providers.  PhoneDog [...]

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Lessons from the Court Room: Same Old Same Old Is No Defense to Defaults

December 8, 2011

Whether a franchisor or franchisee, the same issues seem to come up again and again with no end and no resolution.  A consumer complaint regarding franchisee’s services is received by the franchisor.  This is the third complaint on the same issue.  The franchisor goes to the franchised business every year and completes a quality inspection.  [...]

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