One expensive aspect of operating and/or acquiring a franchise that new franchisees often overlook is the expense of utilizing, adopting or upgrading the franchisor’s technology. Technological advancements in franchising cross all industries. In fast-casual restaurants, servers often use tablets to place orders; in fast food franchises, kiosks are rapidly gaining popularity; hotel franchises frequently use

Companies that are interested in developing a franchise program or offer franchises for sale in or from New York must comply with the New York Franchise Sales Act and the Amended Federal Trade Commission Rule (the “Rule”). The New York Franchise Sales Act requires registration of a franchise disclosure document (“FDD”) prior to the offer

The Defend Trade Secrets Act of 2016 (the “DTSA”), which became law on May 11, 2016, is a useful tool for franchisors in protecting their trademarks and trade secrets both against employees and potentially against former franchisees. Franchisors can utilize the DTSA to bring a federal claim for trade secret misappropriation, which was not an

Congratulations! If you are considering franchising, that most likely means you have opened and successfully operated a new business; no easy feat in today’s economy! As you likely already know, franchising can be an incredibly effective way to grow your business and brand. Like many business owners who are new to franchising, you may find

In In re Baez, a potentially important case for franchisors, Jan-Pro Cleaning Systems, a janitorial franchisor, was held responsible for unemployment insurance contributions on remunerations paid to franchisees. In Baez, franchisee-claimant operated a cleaning service pursuant to a Jan-Pro franchise agreement. In 2009, franchisee-claimant ceased operations and applied for unemployment insurance. During the same time

A recent article in the Franchise Times provides an interesting perspective on franchisors’ web site practices. Mark Siebert, from iFranchise Group, writes that “[w]hen it comes to whether franchisors should separate their franchise website from a consumer-facing site, a house divided is a good, even important thing. While it may seem counterintuitive, when it comes

One of our founding partners, Michael Einbinder, recently addressed a group of restaurant franchisees concerning transferring their respective franchise(s) to the next generation, a concept often referred to as succession planning. Arranging to have an existing business transferred to the owner’s family, children or desired operator requires a plan that involves estate planning (Wills, Trusts,

The declaration of policy accompanying the New York Franchise Sales Act, N.Y. Gen. Bus. L. § 680 et seq., (NYFSA) states that “it is the intent of this law to prohibit the sale of franchises where such sale would lead to fraud or a likelihood that the franchisor’s promises would not be fulfilled.”  The NYFSA

New York State, and particularly New York City, is becoming one of the most expensive places in the nation to operate a small business.  New legislation is affecting the bottom line of small businesses across the State including many franchisees trying to maximize the return on their business investment.  On April 4, 2016, New York