Category Archives: Franchise Law

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Investigate Franchises Carefully Before Investing or Buying

In the Des Moines Register today there is an article about a food truck franchiser that allegedly got cross-wise with investors and franchisees. The article shows just how critical it is to perform due diligence when it relates to franchises (or any other business opportunity). I have a number of posts available I have written … Continue Reading

How Do Presidential Candidates Stack Up on Small Business Issues?

I normally try to avoid political issues and discussion because really it does me no good. I am sure to tick someone off because I have clients who are on both sides of the aisle and some that are not political at all. But since the Iowa Caucuses enjoy first-in-the-nation status, I’ve decided to join … Continue Reading

Should Non-Compete Agreements Be Enforceable in Iowa?

People often mistakenly believe that non-compete agreements are not enforceable in Iowa. Sometimes people think that because Iowa is a “right to work” state that means non-competes are not valid or other times people may have “heard” non-competes aren’t valid. Neither is correct. Non-competes in Iowa are enforceable in Iowa under appropriate circumstances. But recently I … Continue Reading

2016 Brings 10th Anniversary of Rush on Business

This coming year will be the 10th anniversary of Rush on Business. When I first started the blog I wrote articles 5-6 times per week, worried about my search rankings constantly and did everything I could to get my articles linked with other blogs. I have been one of the fortunate ones in the blogging … Continue Reading

Square One DSM Luncheon Features Mike Colwell

Typically you will find the Executive Director of Entrepreneurial Initiatives for the Greater Des Moines Partnership asking the questions at entrepreneur luncheons.  But this time Mike Colwell will be the one on the hot seat. This will be a great luncheon discussion as Mike will be interviewed by Tej Dhawan (an accomplished entrepreneur and community leader in … Continue Reading

Successful Franchises Continue to Evolve

I found this article from Entrepreneur Magazine interesting regarding several franchises that are now offering delivery (some franchise on this list and others do not). The most successful franchises are continually evolving and adapting their concepts to meet consumer demands. What about your franchisor? Are they evolving and adapting?… Continue Reading

Women-Owned Business Grants

I am often asked about business grants for women and minorities. In my experience these grants can be difficult to come by but they do exist. Here is an article from Entrepreneur discussing grants for women-owned businesses and also a link to the Targeted Small Business site with the Iowa Department of Economic Development.… Continue Reading

BIZ Luncheon Features Casey Niemann of AgriSync

If you are fresh off your spring break and looking for a great networking event I recommend attending the BIZ Luncheon this Wednesday, March 25th at the Ruan II Building, 601 Locust, Conference Room 101 in Downtown Des Moines. Casey will share the tale of his leap from the corporate world with Microsoft to the … Continue Reading

Business Owners: Don’t Neglect Succession Planning

All too often business owners neglect succession planning. In fact, according to a recent Inc Magazine article and Deloitte survey on the topic, 90 percent of business leaders recognize the success of their company depends on effective leadership succession but only 13 percent are confident about the succession plans they have made. And those are business … Continue Reading

20 Franchise Trends from Industry News Source

Franchise Times has an interesting article on 20 to Watch: franchise trendsetters in 2015. One of the more interesting items to me was No. 18 – So Sue Me. Apparently one enterprising insurance executive has set up a suite of insurance products specifically designed for franchisors and franchisees to limit their risk against lawsuits. You … Continue Reading

Iowa Specialty Business Court Off to Good Start

Back in January of 2013 I shared that the Iowa Supreme Court began a new specialty court for business cases. According to a recent article from the Des Moines Business Record it sounds as though the court is off to a good start. (Unfortunately the article is only available in the member’s section of the … Continue Reading

My Own (Informal) National Start a Business Day

I don’t know why or what’s in the water but November 17th must have been my own little national start a business day as I helped people form and start four businesses today. It is days like today that certainly keep you energized as a business lawyer and it is fun to see the excitement … Continue Reading

Entrepreneur Magazine Says Hire a Good Lawyer When Starting Business

Entrepreneur Magazine columnists Courtney Spritzer and Stephanie Abrams list Hiring a Good Lawyer as one of the four things a start up business owner should do that may not be in the business plan. Another professional they suggest engaging is a knowledgeable accountant. And I could not agree more. In fact, I get worried when a client … Continue Reading

Watch for Alleged Yellow Page Advertising Scams

I was recently contacted by a business client whose employee signed a “contract” purporting to be from YELLOW PAGE IOWA that had been faxed to their business for what appeared to be a free Yellow Page or Facebook ad. The contract is misleading and deceptive and the fine print actually attempts to lock the client … Continue Reading

Wall St. Journal Lists Troubled Franchise Brands

A recent Wall St. Journal article discussed some of the franchise brands with higher-than-average default rates. The highest on the list? Planet Beach at a considerable 41.1.% default rate for SBA loans from 2004 through 2014 according to the article. The franchising industry and its model of business does a wonderful job of marketing itself. … Continue Reading

Franchise Focus Blog Discusses The Secrets to Success in Franchising

I read an excellent post recently about The Secrets to Success in Franchising. I love what blog author Mike Sheehan had to say to start the article, If the title of this article caught your attention because you’re looking for a magic bullet, stop reading right now. There is no such thing – for any … Continue Reading

Rush Nigut Receives Recognition by Peer Review Publications

Rush Nigut has been selected by his peers for inclusion in the 2015 Edition of the Best Lawyers in America© in the practice areas of Business Organizations (including LLCs and Partnerships) and Franchise Law. Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers is based on an … Continue Reading

Lessons from an early Long John Silver’s Franchisee

Recently I reviewed a restaurant franchise offering for a client. One of the things I pointed out is the franchise agreement is freely assignable by the franchisor. This means the franchisor could sell its franchise to another entity and the original franchisor could disappear. If a sale occurs it is difficult to predict whether it … Continue Reading

5 Reasons to Hire a Franchise Attorney

 It goes without saying considering I am a franchise lawyer, but I agree completely with the Franchise King who offered his Top 5 Reasons to Hire a Franchise Attorney in a recent post. In my experience a lot of prospective franchisees skimp on hiring a franchise lawyer to review their FDD and franchise agreement. Many … Continue Reading

Prospective Franchisees Need to Research Further Than FDD for Details

I read an interesting article from Entrepreneur on the Key to Understanding a Company’s FDD (franchise disclosure document). It’s an article I’d recommend prospective franchisees read but they better be prepared to go deeper if they really want to understand a Company’s FDD. The author recommends checking three key sections of the FDD: Item 3 … Continue Reading
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