When you want to open a franchise, you should look for one that would be a good fit for you as a person and an entrepreneur. Franchising offers a codified business plan and resources designed for success. Your job as a franchisee would be to understand where you fit...
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Franchise Agreements
Negotiating a franchise agreement
A recent article in Franchise Times featured an interview with Mark Dady, managing partner at Dady & Gardner, detailed the pros and cons of franchise negotiations. The purchase of a franchise provides the franchisee with many built-in benefits. The work necessary...
Franchisor-franchisee relationships during a pandemic
The impact of COVID-19 on businesses over the past twelve months has been well documented. Some had no choice but to temporarily or permanently shutter their operations. Others have remained open but continue to struggle with government-mandated restrictions and...
Common mistakes when buying a franchise
Buying a franchise is a major life event that can have many benefits for the new owner, but it is not as simple as going down the store for some groceries. The process for buying a franchise can be very complicated, and a single mistake can jeopardize your business's...
3 signs it’s time to walk away from a franchise opportunity
Opening a franchise location can offer new opportunities to bring in customers and build a strong business on a preexisting brand. Sometimes, however, a franchise opportunity really is too good to be true. When should prospective franchisees walk away from a franchise...
Ring in the New Year! But Be Careful About Abbreviating Dates
On behalf of everyone at Dady & Gardner, P.A., we want to wish you all a very Happy New Year. As we now enter this next decade, we wanted to warn you of a potential issue that has recently gained some media attention. The year 2020 inherently lends itself to...
Vendor Rebates: Franchising’s Dirty Little Secret
In my previous column, I introduced readers to the often shockingly one-sided and overly aggressive nature of a vast number of franchise agreements. Ronald K. Gardner, Franchising From the Franchisee Lawyer Perspective, Law.com (Sept. 27, 2019). In my next few...
Does the California Franchise Investment Law Preempt Common Law Fraud?
There has been uncertainty in the preceding years surrounding whether the California Franchise Investment Law, Cal. Corp. Code § 31000 et seq. (“CFIL”) preempts common law fraud claims. The relevant language of the CFIL provides: Except as explicitly provided in this...
Common Franchise Agreement Provisions: Right of First Refusal
What is it A right of first refusal is extremely common in the franchise industry. Most (if not all) franchise agreements contain a provision giving the franchisor a right of first refusal on the franchisee’s proposed transfer of its business, including a proposed...
Minnesota’s Implied Covenant of Good Faith and Fair Dealing May Not be Contracted Away
In Northwest, Inc. v. Ginsberg, 572 U.S. 273 (2014), the United States Supreme Court held that Minnesota’s implied covenant of good faith and fair dealing may not be contracted away. In that case, the respondent was a member of airline’s frequent flyer program. Id. at...