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Franchise News Clips

A curated list of franchise-related news articles by the FranchiseHelp team

11/04/2019

Forbes - Can You Sell Or Buy Franchises Without An Item 19?

...But I believe there are actually a lot of ethical reasons to leave the Item 19 out, and prospective franchise owners need to be aware of that before they rush through an FDD in search of Item 19. What you’re seeing in writing is not always the full picture. So, if you’re wondering if you should include an item 19 in your FDD, you can make good arguments either way. But here are some reasons why you shouldn’t....


Franchising.com - What Does Company Culture Mean for Your Bottom Line?

In franchising, who you are is just as important as what you do. Sometimes, it's more important. This is a lesson that many franchise CEOs learn the hard way. When you're running one or two locations, company culture is easy because it's you. You're seeing and interacting with your employees, your product, your processes, and your customers every day. But as you grow and expand, it becomes harder to maintain who you are as a brand…

10/28/2019

JDSupra - Ninth Circuit Finds Franchisors Not Joint Employers of Employees of Franchisees Absent Direct Control Over Wages, Hours and Working Conditions

On October 1, 2019, a three-judge panel of the Ninth Circuit Court of Appeals ruled that McDonald’s Corporation was not liable as a joint employer for any alleged wage and hour violations committed against its California franchisee’s employees because McDonald’s did not exercise enough control over them...


New York Times - How to Get Rich by Buying a Franchise (Really)

...“Franchising is not an industry,” Mr. Johnson said. “What you’re really asking is, what industries are more or less susceptible to downturns? And within those industries, what’s the presence of franchises?” If someone is inclined to buy a franchise, whether for the independence or the wealth, a cleareyed view of what is being pitched is important. Here are some questions to consider...


Franchising.com - 2020: What To Expect in International Franchise Development, Part 2

Despite the political, economic, and trade "festivities" going on around the world today, there are increasing opportunities for new franchise global development in 2020 and beyond. I asked international franchise specialists in my network who reside and work in various regions of the world for their advice for 2020. This is part 2, and includes perspectives from the U.K., Central Europe, and the United Arab Emirates…


Entrepreneur - How to Find the Best CRM for Your Franchise

In 2019, every company has to be a technology company. It doesn’t matter if you’re a franchise, a small business, or a nonprofit -- buyers expect you to provide good service, and to do that, you need to have access to information. Five years ago, if you wanted to use customer relationship management software, it cost hundreds of thousands of dollars and was time-consuming to install. Now, in a modern CRM, you’re looking for software that’s cost-­effective, quick to install, and straightforward to manage…


New York Law Journal - New Disclosure Document Cover Pages; Case Law Developments

Following years of study and deliberation, the North American Securities Administrators Association (NASAA) Franchise Project Group—the quasi governmental body of federal and state franchise officials which coordinates franchise regulatory activity, initiatives and policy nationwide—recommended to NASAA a new series of Franchise Disclosure Document (FDD) “state cover pages,” which NASAA voted to adopt on May 19, 2019...Each of the 14 states featuring franchise registration/disclosure statutes (California; Hawaii; Illinois; Indiana; Maryland; Michigan; Minnesota; New York; North Dakota; Rhode Island; South Dakota; Virginia; Washington; and Wisconsin) will in one fashion or another adopt these new FDD state cover pages mandate...

10/14/2019

Forbes - How to Create and Maintain Strong Franchisor-Franchisee Relationships for the Long-Term

In franchising, the importance of the relationship between franchisor and franchisee can’t be overstated. It is the dynamic that underscores success or failure at the unit level—and as a result, impacts the viability of a franchise system as a whole. If you’re new to the industry on either side of the aisle, it’s essential to understand what these relationships entail, what both parties can (and should) expect of one another and how to get the most out of the partnership, which, if maintained properly, can lead to long-term success...


Op-ed MarketWatch - Franchises need legal protection from joint-employment lawsuits

...This kind of uncertainty around brand control is stifling to entrepreneurs and local businesses but could be fixed with common-sense legislation. Fortunately, there’s a bipartisan solution with the Trademark Licensing Protection Act (TLPA). The TLPA simply says that brand standards aren’t employment standards. The reason is simple: brand standards are responsible for the quality, consistency, safety, and uniformity that consumers expect from franchises; but they don’t dictate how to achieve them…


QSR Magazine - Why it Pays to Give Franchisees Freedom to Innovate

...Individuality isn’t usually associated with the franchising model, one built on brand consistency down to the most minute details. But some limited-service brands have found that allowing franchisees the freedom to imbue their stores with their personalities brings about benefits like increased community connection and a deeper degree of trust...

10/07/2019

Entrepreneur - Licensing vs. Franchising: Which Path Is Right for You?

Whether you’re deciding how to best expand your business or buy into a business, there are lots of factors to consider, from emotional to financial to legal and more...The end message? Know your personality type, management style, how dependent or independent you intend to be and your goals for operating a business….


Forbes - Change Or Fail In Franchising

For the past few decades franchise companies have been lulled into a false sense of security by failing to innovate, primarily due to a dutiful ‘baby boomer’ clientele. Now that millennials are settling into place, failing to adapt to their interests, habits and beliefs can be fatal, and in franchising, you are putting a network of business owners at risk...


Forbes - How To Help Franchisees Adopt Local Digital Marketing

...So how can franchisors, who are often responsible for providing marketing infrastructure and guidance, help their franchisees adopt digital marketing at the local level? After working with thousands of franchisees from more than 200 franchise brands, this is what we’ve learned…


Franchising.com - Sales Advice for New Franchisors

...New franchisors are missing a good bet if they don't get the word out that they are franchising to their own customers, employees, suppliers, friends, and family. Using grassroots lead generation -- such as talking with or sending a letter to customers and suppliers, a kickoff meeting with employees, franchise information on your website, or postings on social media -- is not only cost-efficient, but (as noted above) these tactics can be highly effective...


Entrepreneur - Want to Open a Business? Here Are 5 Reasons to Consider Franchising.

For many people, the opportunity to own a business is the ultimate dream. In fact, a recent survey from The UPS Store found that nearly two-thirds of Americans dream of starting their own small business. However, the same survey revealed that a fear of failure can hold them back. This is certainly a valid concern, but there is one type of business that can give entrepreneurs a leg up on their own success: franchising...


AP - Franchise Brokers Association Announces Exclusive Partnership with Franchise Grade

Franchise Brokers Association (FBA) is proud to announce an official partnership with Franchise Grade, the number one authority on franchise system information. As a data research company, Franchise Grade is designed to deliver detailed franchise information to help brokers and the prospective franchisees they work with make an informed buying decision...

09/30/2019

New York Law Journal - Franchising from the Franchisee Lawyer Perspective

Imagine a client walks into your office wanting to get out of a contractual arrangement that they entered into three years ago. They explain that they are losing money, and that the contract makes no sense for them any longer...


Forbes - Location, Location, Location: Why Securing The Right Real Estate Is Critical To Franchise Success

Real estate site selection has the power to make or break any business with a brick-and-mortar component. Act accordingly. For franchises with a retail component, site selection is one of the most important ingredients to individual franchisee success. Securing the right location is also just as critical to the success of the franchisor — so the right real estate selection is fundamental to both parties’ success…


Forbes - Two Franchise Trends Aspiring Franchisees Should Look Out For

With my professional experience in mind, I was delighted to see that some of the insights brought forward in the study were negated misconceptions about franchise ownership. Two of those findings included:

• Women are more likely to start a business or franchise location than buy a pre-established one.

• Most new franchise startup acquisition costs range between $50,000 and $175,000, not $1 million...

09/23/2019

Franchising.com - CMO Q&A: How Is Your Marketing/Branding Strategy Developed, and How Does It Flow Through the System?

In each issue of Franchise Update magazine, we profile franchise CMOs and marketing leaders, asking each the same set of questions. Their responses say a lot about who they are, their culture, their values, and where they’re leading their companies...


JD Supra - California Statute Offers Dramatic Change to Independent Contractor, Franchise-Franchisee Relationships

On September 18, 2020, California Governor Gavin Newsom signed a new measure — Assembly Bill 5 — which will redefine how businesses classify their workers. Commonly known as “AB 5,” the new law seeks to codify the “ABC Test” for determining the existence of an employer/employee relationship. Simply put, the bill will make it much more difficult for businesses to utilize workers as independent contractors…


Franchising.com - Impacts of the New Revenue Recognition Rules on Franchising So Far

Franchisors are mandated by the FTC’s Franchise Rule to include GAAP-based financials in their FDD. As franchisors have started to experience, FASB changed what most franchisor financial statements look like because of the new revenue recognition rules, and we are now starting to see how financials are changing. By next year we should be able to draw some conclusions about whether these changes are having a material impact on those who are using the financials for decision-making…


The Business Journals - Risky business or not? Why franchising makes more sense than you think

Savvy entrepreneurs seek out franchising opportunities for many compelling reasons. At the top of the list is the desire to own a company without the groundwork required to run a single-owner operated business. Entrepreneurs troubled by the unknowns of business ownership often find franchising a happy medium...

09/16/2019

Franchising.com - Franchise Finance: How 9 Franchisors Help Operators Find Capital

Franchisors offer all kinds of assistance to help franchisees find funding. Among the dozen we spoke with, the most common types included waiving or reducing franchise fees and/or royalties for the first year or more; connecting franchisees with approved banks and other lending sources that have already vetted the brand; and offering discounts and financial incentives for additional units and accelerated openings. Simply put, lenders want to lend, franchisors want to grow, and franchisees want to start their own business or expand the one they have…

09/09/2019

New York Law Journal - Is the Franchise Model Under Attack?

During the last two years, franchisors have been facing courts and legislatures that appear to be increasingly hostile to franchising, as greater numbers of franchisor-franchisee relationships are being deemed to be franchisor-employee relationships. This column summarizes some of the most serious recent challenges to the franchise business model…

09/03/2019

Franchising.com - Transform Those "We Need To Talk" Moments into Positive Conversations

Interdependent relationships, where you can't just walk away when the going gets tough, can be both satisfying and frustrating. Think marriage, business partnerships, long-term supply agreements, and of course, the franchise relationship. Regular constructive conversations are essential to keep things on track...