Dady & Gardner, P.A.Dady & Gardner, P.A.2026-10-19T19:06:11Zhttps://www.dadygardner.com/feed/atom/WordPress/wp-content/uploads/sites/1501753/2020/12/cropped-Dady-Gardner-site-icon-32x32.jpgby Dady & Gardner, P.A.<![CDATA[Maryland’s Franchise Law Expands Franchisee Protections: Two Critical Changes Effective October 1, 2026]]>https://www.dadygardner.com/?p=508772026-09-11T13:29:18Z2026-09-11T13:29:18ZFranchise Registration and Disclosure Law, effective October 1, 2026. Two changes are especially important for franchisees and franchisee associations: a revised statute of limitations for private civil actions and a newly codified right to join and participate in franchisee trade associations.
Updated Statute of Limitations for Franchisee Claims
The deadline for filing a lawsuit under the Maryland Franchise Law has changed. Instead of a single three‑year window, franchisees now have two possible timelines, and the earlier one controls:
A franchisee must bring a claim within four years of signing the franchise agreement, or within two years of opening the business to the public, whichever comes first.
New Right to Join Franchisee Trade Associations
Maryland has added a new provision expressly protecting franchisee association rights. Franchisees now have the statutory right to:
Join a trade association of fellow franchisees of the same brand
Participate in that association for any lawful purpose
Associate freely with other franchisees without franchisor interference
The law prohibits franchisors from restricting or inhibiting these rights directly or indirectly, and it creates a private cause of action for violations. This amendment strengthens collective franchisee advocacy and supports the formation and operation of independent franchisee associations.
How We Can Help
Dady & Gardner, P.A. represents franchisees and franchisee associations nationwide. Our franchise attorneys regularly assist with forming, organizing, and advising franchisee associations and can help evaluate how Maryland’s amendments may affect your rights as a franchisee. For a free consultation, call us at 888‑261‑3777.
NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post. Readers should consult legal counsel to determine how the laws or information discussed apply to their specific circumstances.]]>On Behalf of Dady & Gardner, P.A.<![CDATA[Can my franchisor open a new unit in my exclusive territory?]]>https://www.dadygardner.com/?p=505932026-06-18T20:41:59Z2026-08-20T05:00:35ZA potential risk occurs when a franchisor is permitted to open a competing location right next to your franchise. This possible encroachment may be permittable depending on factors such as the language in your franchise agreement and governing state law. When your franchisor sets up shop nearby, you may face reduced profits, decreased customer traffic, and a significant threat to your investment. To protect your income, you first need to understand what this practice means for your business.
Understanding the dangers of encroachment
Business encroachment can occur when a franchisor opens a new location too close to yours. Their location can pull customers away and reduce your sales. Additionally, it can splinter the customer loyalty you built over the years. This creates unfair competition within the same brand and adds pressure to your business. Thus, understanding your territorial rights, or lack thereof, can help you determine how much risk this potential threat poses.
Your territorial rights as a franchisee
Territory rights define your operational area and directly address potential encroachment by other franchisees or franchisor-owned locations. Fortunately, the Federal Trade Commission requires franchisors to disclose whether you get an exclusive area. Additionally, the franchisor must also explain when they can change your territory rights. This is designed to inform you of your protections from the start.
The two types of territories that you need to know
Your territory rights also decide whether you can stop encroachment before it happens. Hence, you should check your franchise agreement if it grants you one of the two territory types below:
Exclusive territory: Your agreement guarantees you operate as the only franchisee in a specific geographic area, such as a five-mile radius around your location.
Non-exclusive territory: Your franchisor can place other franchises anywhere, including directly next door to your business.
These differences make all the difference in protecting your investment. Once you understand which territory type you have, you can take the right steps to defend your business rights.
Protect your business from unfair competition
You have rights as a franchisee that you must actively protect. Your franchise agreement explains your territorial protections and business rights clearly. Start by reviewing your contract carefully to identify what protections you have. If encroachment violates your agreement, you can take action to defend your territory. Many franchisees find that professional guidance helps them work through complicated franchise agreements and protect their investments.
NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post]]>On Behalf of Dady & Gardner, P.A.<![CDATA[What qualifies as good cause for franchise termination?]]>https://www.dadygardner.com/?p=505412026-06-18T20:41:28Z2026-07-30T15:31:01ZWhether and to what extent legal limits exist on when a franchisor can end a franchise agreement vary from state to state. For example, franchise relationships in Minnesota are subject to legal limits on when a franchisor can terminate the agreement. In Minnesota, termination requires good cause under state law, not on a basis of preference or convenience. These rules protect franchisees from abrupt or unsupported decisions that could disrupt an established business. Understanding this standard and whether it or other standards apply in your state helps you evaluate whether a termination notice follows the law.
Minnesota law defines good cause
Minnesota law defines good cause as a franchisee’s failure to substantially comply with reasonable and material requirements of the franchise agreement. The focus stays on whether the requirement matters to the franchise system and whether the noncompliance is serious. The law aims to prevent terminations based on insignificant or unrelated issues and promotes stability within franchise systems. However, states without strictly defined legal limits on terminating the franchise relationship can create instability in the relationship over issues that may seem innocuous at first glance.
Material contract failures often meet the standard
Good cause often exists when a franchisee fails to meet obligations that affect the core of the agreement, such as required payments, brand standards, or operational rules tied to system consistency. Courts examine whether the failure undermines the franchise relationship rather than isolated mistakes. Substantial compliance, not perfection, remains the general benchmark for judging performance. Typically, without a good cause requirement for termination, the franchisor has increased flexibility to terminate.
Notice and cure requirements apply
Minnesota law requires a franchisor to provide written notice at least 90 days before termination and give 60 days to correct the stated reasons. The notice must clearly describe the conduct that led to termination so the franchisee can understand and address the issue. Limited exceptions allow faster action in narrow circumstances, but the statute sets cure opportunities as the default rule. Franchises within states lacking legal notice requirements are often limited to the language of the agreement.
Facts and fairness shape good cause
Courts consider the full context when evaluating good cause, including past enforcement and consistency across franchisees. Uneven treatment or vague notices can weaken a termination position. Knowing how and whether a state defines and applies legal limits to termination allows you to assess risk, plan responses, and protect your business interests.
NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.]]>On Behalf of Dady & Gardner, P.A.<![CDATA[Can you refuse to sign an updated franchise agreement upon renewal?]]>https://www.dadygardner.com/?p=505942026-06-18T20:40:48Z2026-07-09T17:26:10ZIf you are faced with signing an updated franchise agreement at the time of renewal, you may feel like you are facing an impossible choice. Many franchisors present these documents as "take it or leave it," suggesting that your right to operate will simply expire if you do not agree to their updated terms. However, in states with strong franchisee protection laws like Minnesota, the power dynamic is not as one-sided as it seems.
The requirement for good cause
In Minnesota, a franchisor cannot simply fail to renew a franchise agreement without "good cause." Under the Minnesota Franchise Act, good cause is generally limited to instances where a franchisee has failed to substantially comply with the material and reasonable requirements of the agreement.This means that if your business is in good standing, a franchisor may be legally prohibited from ending the relationship just because you have concerns about new, unfair or inequitable contract terms. Instead of a simple expiration, the law often requires the franchisor to prove that their decision to move on is based on a legitimate failure on your part.
Prohibited practices at renewal
Franchisors often include "standard" clauses in renewal agreements that may actually be unenforceable in certain jurisdictions. You should be especially wary of:
General releases: Some franchisors try to require you to waive your right to sue them for past disputes as a condition of staying in the system. In Minnesota, requiring a franchisee to waive rights provided by state law is generally prohibited.
Unreasonable capital expenditures: You can challenge the requirement to pay for major renovations or new equipment just to get a signature on a renewal as an unfair practice.
Substantial fee increases: Significant hikes in royalties or advertising fees that were not part of your original investment expectation may not always be mandatory under "good faith" standards.
Identifying these red flags early can help you determine if the proposed changes are legally sound. If you are presented with a "then-current" agreement that threatens your profitability, do not assume that the countdown to closure has started.In many cases, franchisors are required to provide 180 days of notice before a nonrenewal can take effect. This window is designed to give you time to seek legal counsel and determine if the franchisor is meeting their statutory obligations.
Protecting your investment
Before you sign any document that requires you to give up your rights or pay significantly more for the same brand, review the specific protections available in your state. Understanding the MFA and similar "relationship laws" is the first step in ensuring your business remains yours.NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.
]]>On Behalf of Dady & Gardner, P.A.<![CDATA[What remedies apply after misleading franchise recruitment?]]>https://www.dadygardner.com/?p=505962026-06-18T20:24:09Z2026-06-18T20:24:09ZFraud or misrepresentation during franchise recruitment can leave you with losses that affect both your business and personal finances. Minnesota law gives franchisees several ways to respond when a franchisor makes misleading statements or hides key facts. Understanding these remedies may help you evaluate your options and protect your interests.
Rescission of the franchise agreement
One common remedy involves rescission. Rescission unwinds the franchise agreement and places both sides back in their pre‑contract positions. Often, a franchisee may recover their initial franchise fee and other amounts they paid to enter the system. Also, courts often require that franchise operations cease once rescission applies, since the franchise agreement no longer binds the parties.
Monetary damages for financial losses
You may also seek damages for losses tied to the fraudulent recruitment. These damages can include out-of-pocket costs, operating losses, and other expenses caused by the misrepresentations. Minnesota law allows recovery when you show that the false statements directly influenced your decision to invest. Financial records, disclosures, and communications often play a key role in proving these claims.
Statutory remedies under Minnesota franchise law
Minnesota franchise statutes provide added protections beyond common-law fraud. These laws prohibit false statements and omissions during franchise sales. When a violation occurs, courts may award damages, rescission, or other relief allowed by statute. In some cases, statutory remedies offer broader recovery than traditional fraud claims.
Equitable relief and court‑ordered remedies
Courts may also grant equitable relief when money alone does not address the harm. This relief can include injunctions that stop ongoing deceptive practices. Equitable remedies focus on fairness and may apply when a franchisor continues using misleading sales tactics. These orders aim to prevent further harm to you and other franchisees.Many franchisees pursue more than one remedy at the same time. For example, you might seek rescission while also requesting damages for losses incurred related to the agreement. Minnesota courts often evaluate how these remedies work together to fully address the impact of fraudulent recruitment. Understanding these options can help you decide how to respond and what outcomes you may seek.
NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.]]>by Dady & Gardner, P.A.<![CDATA[Dady & Gardner, P.A. Announces Expansion with Opening of New East Coast Office]]>https://www.dadygardner.com/?p=503942026-03-05T09:54:10Z2025-12-03T17:49:32Z
Office to be led by Veteran Franchise Attorney Nicole Liguori Micklich, joined by Attorneys Sam Agostini and Linda Urso
Minneapolis, MN — December 3, 2025— For Immediate Release — Attorney Advertising — Dady & Gardner, P.A. is pleased to announce its continued growth with the opening of a new east coast office. The expansion reflects the firm’s commitment to serving franchisees, dealers, and distributors nationwide with local presence and nationally recognized expertise.
The new east coast office will be led by Nicole Liguori Micklich, a respected franchise and business litigation attorney known for her strategic approach to complex disputes and hands-on client service. Joining her are Sam Agostini and Linda Urso, both experienced practitioners who bring strong backgrounds in franchise, commercial, and regulatory matters.
“I am honored to continue representing franchisees and dealers from around the world with some of the most revered members of the franchise bar and to join Dady & Gardner as the Managing Partner of the firm’s Northeast office,” said Nicole Liguori Micklich. “Having worked with renowned litigators from Dady & Gardner in the past, our team is excited to join the firm. With the addition of this east coast office, Dady & Gardner will remain at the forefront of franchisee advocacy in the U.S. and internationally.”
Dady & Gardner Managing Partner, Mark Dady, emphasized the strategic importance of the expansion. “Nicole is an exceptional litigator and a highly regarded authority in franchise law. Her dedication to franchisees aligns perfectly with the mission Dady & Gardner has had for over 30 years, and we are thrilled to have her, Sam, and Linda spearheading our presence in the Northeast,” said Dady. “This new office strengthens our ability to provide local, accessible, and highly specialized support to clients nationwide.”
The east coast office will serve franchisees, dealers, and independent businesses across the nation, providing the full range of Dady & Gardner services, including franchise litigation, regulatory compliance, contract negotiation, dispute resolution, and system-wide franchisee representation.
About Dady & Gardner, P.A.
Dady & Gardner, P.A. is a nationally recognized law firm focusing exclusively on franchise and dealer law. The firm represents franchisees, dealers, and distributors in virtually all industries throughout the United States. With decades of experience and a commitment to outstanding client advocacy, Dady & Gardner has been repeatedly ranked among the top franchisee law firms in the nation.
Media Contact:
Amanda Bekric, Marketing Coordinator at Dady & Gardner, P.A.
612-359-3515 | abekric@dadygardner.com | www.dadygardner.com]]>On Behalf of Dady & Gardner, P.A.<![CDATA[3 potential benefits of investing in additional franchise units]]>https://www.dadygardner.com/?p=502482025-04-25T13:47:55Z2025-04-25T13:47:55Zadditional franchise locations.
They may do so within their current territory or by expanding their territory. There are numerous benefits that franchisees can derive from acquiring additional units during a franchise agreement. The three potential benefits below are among the most compelling for many franchisees.
Rapid expansion
Purchasing new franchise units is a very quick way to scale up the operations of an already successful franchise business and multiply profits. Provided that there is adequate demand in the local region for the goods or services that the franchise offers, each new location can be a source of revenue that can expand the company's overall profitability and market reach. While rapid growth is often dangerous for new businesses, it may be more sustainable in a franchise scenario.
Optimizing talent retention
With a single franchise location, there are obvious limits to the career development of employees. The franchisee only needs one general manager and may only require the services of a few assistant managers or team leaders. They may hire the best and brightest, but those people may then start looking for job opportunities elsewhere when there aren't open positions that allow for upward mobility within the franchise organization. The establishment of new locations can provide opportunities to talent already working at the original franchise location. The franchisee can retain their top talent and can also attract ambitious people who recognize the opportunity that comes from working with a franchisee who has multiple locations.
Sharing services and supplies
Maintaining adequate staffing and necessary supplies for a single franchise location can be challenging. When there are multiple locations in a specific region, the franchisee can potentially use the talent and resources of one franchise location to address issues at another facility. If equipment fails or a worker has a personal emergency, the resources of another location can help ensure that the affected franchise location continues operating without many issues. It can also be beneficial to cross-train between locations to ensure a well-educated and productive workforce.
Expanding a franchise operation by acquiring new units can be a smart choice for a successful franchisee. Franchisees often need help planning their expansions and negotiating favorable contract terms. Appropriate assistance when renewing or modifying franchise agreements can make a major difference for those invested in a franchise business who are seeking to expand.
NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.]]>On Behalf of Dady & Gardner, P.A.<![CDATA[Should intellectual property matter to franchisees? ]]>https://www.dadygardner.com/?p=501722025-04-03T18:10:55Z2025-04-03T18:10:55Zintellectual property rights impact the operation of a franchise business. Franchisors closely protect their intellectual property, and IP issues in the franchise system have the potential to cause disputes, financial losses, and even the termination of a franchise agreement. For franchisees, protecting their interests means ensuring that intellectual property rights are clearly defined and properly enforced.
When a franchisee enters into an agreement with a franchisor, they are essentially paying for the right to use the franchisor’s intellectual property. This includes:
Trademarks – Franchisees benefit from using the franchisor’s name, logo, slogans, and other brand identifiers. These elements attract customers and establish market recognition.
Trade Secrets – Many franchises rely on proprietary methods, recipe,s or operational strategies that give them a competitive advantage. A franchisee must be granted access to these trade secrets while also ensuring their protection.
Copyrights – Marketing materials, training manuals, and digital content used in the franchise system are often copyrighted, meaning franchisees must follow specific guidelines regarding their use.
Patents – Some franchise systems involve patented technology, equipment, or processes that franchisees must use or license under the agreement.
Understanding the importance of these intellectual property assets can help franchisees avoid legal pitfalls and maximize their investment.
The value of a franchise depends largely on the strength of its brand. If a franchisor fails to protect its intellectual property, or if other franchisees misuse trademarks or branding, the entire franchise system could be negatively impacted. Franchise investors should carefully analyze a franchisor’s intellectual property. Details on the status of intellectual property are found in Item 13 of the Franchise Disclosure Document (FDD) furnished to prospective investors prior to purchasing a franchise. Prospective franchisees should be cautious about entering a franchise system that has failed to properly register its trademarks with the Patent and Trademark Office (PTO). Some franchisors seek to sell franchises without having any protected trademarks, which could lead to future disputes, and the potential need to rebrand the system.
In an effort to protect the system’s intellectual property, franchisors often require their franchisees to follow strict rules on how intellectual property can be used. Unauthorized modifications to a logo, advertising campaign or operational system may result in legal action from the franchisor. Additionally, franchise agreements typically prevent franchisees from using IP after the contract ends, meaning they cannot continue operating under the brand name once their franchise term expires.
To ensure a clear understanding of a franchise system’s intellectual property, prospective franchisees should consult an experienced legal team to evaluate the intellectual property clauses. A review by an experienced franchise attorney will ensure that a prospective franchisee can provide numerous benefits, including helping prospective investors:
Ensure that IP rights are clearly defined and enforceable
Understand restrictions on advertising and branding modifications
Confirm whether the franchisor has properly registered and maintained its trademarks
Evaluate post-termination clauses to determine how IP rights apply after the franchise relationship ends
Intellectual property is a foundational aspect of franchising. Franchisees should understand the critical elements of a franchise system’s intellectual property before investing. Further, franchisees can maximize their success by ensuring that they are complying with the intellectual property requirements of their franchise system.
NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post. ]]>On Behalf of Dady & Gardner, P.A.<![CDATA[How can you finance a franchise?]]>https://www.dadygardner.com/?p=500202024-12-05T08:39:56Z2024-12-12T08:39:22ZMany decisions must be made when you decide that a franchise is the best option to start your own business. One of these is how you’re going to pay for the franchise. It’s a good idea to have this determined as early as possible in the process.
While some franchises offer financing to qualified franchisees, not all do this. If you don’t have the option of franchisor financing, there are a few other options to consider to finance your franchise.
Traditional bank loan
One of the most common options for financing a franchise is obtaining a loan from the bank. This could come with competitive interest rates, particularly if they consider the fact that you’re using the money to start a franchise. Having a detailed business plan, a strong credit history and a full understanding of the franchise’s financial performance are beneficial.
Small Business Administration loan
The Small Business Administration has specific loans for small business owners. This is often a viable way to fund startup costs, working capital and equipment. These loans often offer favorable terms because they’re partially guaranteed by the government. Remember, the process can be very detailed and lengthy. Some people also have to consider alternative financing, such as venture capital or crowdfunding. As you’re considering financing and moving forward with the franchise process, you should consult with someone familiar with franchise law and all the applicable points related to it. This can help to ensure you’re protecting yourself as you start your business. NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.]]>by Dady & Gardner, P.A.<![CDATA[Ron Gardner Discusses Franchise Fraud in the New York Law Journal]]>https://www.dadygardner.com/?p=500182024-12-05T20:38:45Z2024-11-19T17:45:15ZTightening the Noose on Franchise Fraud, published in the New York Law Journal. Gardner highlights California's new SB 919 law, a pioneering step toward increasing transparency in franchise broker practices and safeguarding franchisees from misleading financial representations.
"There is a large incentive, with very little consequence, for brokers to say what they feel needs to be said to make the sale," Gardner explains. This new law is an important "step in the right direction," ensuring that, "franchisees are going to be better off, and franchisors are hopeful that this will help “clean up the industry” from folks who will say anything to make a franchise sale and then disappear into the night with virtually no liability."
This critical analysis sheds light on how regulatory changes aim to clean up the franchising industry, creating a fairer landscape for franchise buyers. Discover why this law matters and how it could pave the way for nationwide reform.
Read more about Ron’s insights here: New York Law Journal
*NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.]]>
