Franchisors often tout that they are selling an "exclusive territory" to a franchisee during the sales process. Franchisees generally want an exclusive territory because they believe this protects them from competition from other franchisees or the franchisor itself. But if you are a franchise who has been sold an exclusive territory, you better make sure
I read an interesting blog post on the LexBlog Network from Tom Crane of the San Antonio Employment Law Blog called What We Can Learn from the Government Shutdown. The lesson Crane preaches that bullying tactics usually do not work very well in negotiation and tend to invite an equal response from the other…
You can catch me tonight on the Insight on Business – The News Hour with Michael Libbie this evening at 5 pm on AM 1350-KRNT.
Michael and I will be talking franchise law and more.
It’s a great program you should check out. The show runs Monday-Friday each week at 5 PM.
Prospective franchisees are often under the mistaken belief that franchise agreements are not negotiable. That’s often true even after a franchisor says initially that it will not negotiate a franchise agreement.
So what’s one key in obtaining concessions in your franchise agreement?
Be willing to walk away.
It’s true of any negotiation. If you are…
If you’re a prospective franchise I highly recommend a series of articles written by Robert Purvin, Chairman and CEO of the American Association of Franchisees and Dealers, on franchising myths. One of his best articles touches on the myth that Franchising Provides a "Proven Franchise Business System".
I hear this one all the time.
Joel Libava (a/k/a "The Franchise King") has a list of 20 Must-Do Things Before You Buy a Franchise. It’s a great list so I thought I’d share the article with you.
The last item on his list is to "Lawyer Up". Joel explains that the franchisor has a lawyer so franchisees should too.
Those interested in raising investment capital for their business, or those interested in making investments in businesses, may want to take advantage of the monthly due diligence/investor training provided by Plains Angels.
Plains Angels is a group of Midwest angel investors that have now funded various projects here in the Midwest. The group is…
I recommend prospective franchisees take a look at Empire Builders which is a series of videos highlighting successful multi-unit franchisees.
Most of the prospective franchisees that come to see me are seeking to purchase a single franchise. Many of them dream of becoming a multi-unit owners but usually lack the capital (at least initially) to…
Potential franchisees should read this article from Robert Purvin on Franchising Myth One: Franchises are Safe Investments. In the article, Purvin discusses how franchises and independent businesses fail at roughly the same rate (something discussed at length in several of my blog posts).
It’s critical that prospective franchisees understand that buying a franchise will…
If you read article after article on business law you will see "Get it in Writing" near the top of the list in advice that lawyers routinely dispense to business owners. Indeed, a quick search of this blog produced 28 entries dealing with "getting it in writing".
My experience is that many business owners…