Franchise Lawyer Blog

How A Franchisor Makes Its Website Legally Compliant

       Franchising is highly regulated to create a fair and open marketplace for potential franchisees looking to make an investment in a business. In addition to maintaining compliance with the franchise regulations in general, franchisors should be mindful of their website’s legal compliance with regard to the legal requirements that affect it, including

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Restaurant Leases: Your lease should be an asset, not a liability

Restaurant Leases: Your lease should be an asset, not a liability When opening a restaurant, the restaurant owner’s top priority lease concerns typically are the financial and business aspects of the deal: rent, landlord’s work, tenant’s work, common area maintenance charges, utility charges etc. However, there are other aspects of a lease that could complicate

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Commercial Leases in Franchising, continued

Negotiating Relocation Rights for Franchisees/Tenants A relocation provision, in its simplest description, is a contractual right in a commercial lease that permits the landlord to relocate a tenant to another space. Relocation provisions are frequently overlooked when a potential tenant is negotiating the business points of a lease. However, signing a lease with an overly

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The New FASB Rule: What Does it mean for Franchisors?

As we highlighted in a previous blog, the Financial Accounting Standards Board (“FASB”) new rule on revenue recognition requires a franchisor to recognize revenue from the sale of a franchise (i.e. the initial franchise fee) over the term of the franchise agreement. The problem is that this reduces the franchisor’s initial revenue, which makes the

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Franchisor Accounting Issues

The Financial Accounting Standards Board (“FASB) issued new revenue recognition guidelines that take into effect in 2019 for private companies. The guidelines are applicable to public companies this year. The new guidelines seem to suggest that the initial franchise fee would have to be amortized over the life of the franchise agreement, instead of being

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Finding the Best in Franchising

A commercial real estate client called me and told me that he had decided to change directions and buy a business. He remembered that we are very active in franchise law. Buying a franchise made sense to him; he would be buying a proven brand and system and not trying to reinvent the wheel. I

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NLRB Vacates Pro-Corporation Ruling in Joint Employer Case

A Trump-appointee’s conflict of interest has resulted in a blow to U.S. corporations, including franchisors. As we previously posted on our Franchise Lawyer blog, the National Labor Relations’ Board narrowed the definition of a joint employer, in a 3-2 decision, in the Hy-Brand Industrial Contractors, Ltd. and Brandt Construction Co. case. In Hy-Brand, the NLRB

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The Enforceability of Non-Compete Agreements in California

The Enforceability of Non-Compete Agreements in California Franchise agreements often contain a prohibition against competition. If the franchisee operates in California, or if California Law otherwise applies to a franchise agreement, then the franchisee may not be bound by the onerous restrictions of the non-compete. Both franchisor sand franchisees should be aware of the nuances

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Commercial Leases for Franchisors and Franchisees

An Introduction to Commercial Leasing Concepts If you are a business owner considering leasing space for a retail location, an office or any other commercial purpose, you would be well-advised to retain an experienced real estate attorney to assist you. If you are in the preliminary stages of such a process, perhaps already speaking with

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