Franchisors and franchisees can get lulled into complacency when entering a franchise transaction. Franchisors may rationalize foregoing legal representation because they had a franchise business attorney prepare the original paperwork that is reused for each new franchisee. Similarly, franchisees may likewise skip legal representation because they believe that the terms [...]

Franchising requires trust. At some point, the franchisor is expected to disclose the “secret sauce” and the franchisee must keep this information secret. However, conflicts about the timing can arise. From the standpoint of the franchisee, learning proprietary information early in the franchise disclosure document can help the franchisee evaluate [...]

One form of franchising that you might have seen, but did not recognize, is the product distribution franchise. In this model, the franchisor maintains the supply chain for producing the products and only sends finished products to franchisees for sale to customers. Through this franchising relationship, a franchisor can protect [...]

The Internal Revenue Service (IRS) has announced it is undergoing an extensive initiative to identify businesses that are incorrectly classifying employees as independent contractors. For those businesses that choose to reclassify their independent contractors as employees the IRS is charging a small penalty payment to cover past payroll taxes. For [...]

Choosing the form of entity by which to conduct business is one of the first, and often most important, questions faced by someone starting a business. Several factors determine which form of business entity is most appropriate for a particular business, including protection of the owners of the business from [...]

Working with an experienced franchise attorney is the best way for would-be franchisors to get practical and accurate information on business expansion. Entering the world of franchising offers several benefits, but the growth strategy also comes with many challenges — and new franchisors often make costly mistakes. Before you consult with a [...]