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...
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Franchise Agreements
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...
What to do if faced with franchise agreement termination or non-renewal
For a franchisee, wrongful termination or non-renewal of a franchise agreement poses a serious threat to the business you’ve worked so hard to establish. It can often occur unexpectedly and for seemingly no reason. However, depending on your unique circumstances, you...
Important Update: 7 Franchisors Now Obligated to Remove “No Poach” Clauses from Their Respective Franchise Agreements
On July 12, 2018, seven franchise systems entered into legally binding “assurances of discontinuance” with the Washington State Attorney General’s Office, which required them to remove “no poach” clauses (also known as “anti-poaching,” “non-solicitation,” and/or “no...
Entrepreneur Magazine: How Franchisees Protect Themselves
Franchisees and franchisors need each other to survive. but that doesn’t mean every relationship is perfect. A longtime franchisee lawyer explains how franchisees can best protect their business interests. Read More