How To Franchise Your Business In Plain English from Stark & Stark on Vimeo.

You can listen to the full podcast online here. (5.5 MB)
 
 

You can download the full podcast here. (7 MB)
 

Mr. Siegelheim, Mr. Greenberg and Mr. Johnson discussed the recent economic climate in relation to the franchise industry, and what this will mean in the future for franchisors. You can download the full podcast here. (7.7 MB)

The seminar will feature a discussion of the weakening economy and it's effects on many franchises, ranging from restaurants to convenience stores to staffing services who are now seeking bankruptcy protection. The Bankruptcy Code addresses how franchise agreements are treated in bankruptcy; however, the Code does not resolve all of the unique issues that arise for franchisors and franchisees. It is critical that franchise counsel develop strategies to anticipate and protect against the fallout from bankruptcy.

This teleconference will highlight key legal issues that arise during a franchisor or franchisee bankruptcy. The program will also offer best practices for creating a franchise agreement in order to protect their respective interests and maximize their recovery under the Bankruptcy Code.

You can access additional information and a registration form here.
 

Members of the International Franchise Association gave a thorough argument against the bill, despite some tough questioning by the Committee members. I also gave some brief testimony on the technical aspects of the proposed bill. The fight against this bill is just beginning – and since passage of this bill could have a chilling effect on all types of franchising in New Jersey – this is a fight the franchising community needs to win.

 

Mr. Siegelheim comments on the recent trend of franchise bankruptcies among large restaurant systems. Mr. Siegelheim discusses the impacts these recent bankruptcies have had on the franchise industry as a whole, as well as what this could mean for franchisees and franchisors in the future if this trend continues.

You can read the full article here (PDF).

The webinar will focus on the newly revised FTC Franchise Rules, which require that all franchisors provide for certain disclosures to prospective franchisees. Under the new rules, a franchisor is now required to file basic information about the franchisor, the franchised business, and the franchise agreement. Mr. Siegelheim and Mr. Kvitka will review the recent trends in franchise law, and will discuss the impact of the new law on the preparation of disclosure documents, franchise agreements, and state registrations.

You can access additional information and a registration form here.

As I mentioned in a previous blog post:

House Bill 2491 and Senate Bill 1539 of the New Jersey Legislature seek to expand the type of franchises, which are subject to the New Jersey Franchise Practices Act. In general, the New Jersey Franchise Practices Act currently applies to franchises where: 1) the franchisor has granted the franchisee a license, mark, trade name, etc.; 2) there is a “community of interest” in the marketing of goods and services; 3) where the franchisee has established or maintains a “place of business” in New Jersey; 4) where the gross sales between franchisor and franchisee are more than $35,000 in the prior year; and 5) more than 20% of the franchisee’s sales are derived from the franchise. The proposed change in the statute would apply the provisions of the Franchise Practices Act to “mobile” franchises, in other words, franchises that do not have a brick and mortar location. Under the proposed Bill, a “place of business” would include a location where the franchisee “displays for sale or at which or from which the franchisee sells the franchisor goods.” This would include an office or warehouse from which franchisee personnel visit or call upon customers or, perhaps more importantly from which the franchisor’s goods are delivered to customers.

Mr. Kvitka discusses the risks associated when opening a business - whether it is your first business or you are an established business owner looking to expand into a new market. Mr. Kvitka advises business owners to make sure that the transaction is properly structured, that you’ve exhaustively investigated the target business, and that the contract for sale is properly drafted.

You can read the full article here (PDF).

You can read the full article here. (PDF)

You can download the full podcast here. (10.3 MB)
 

The Bill apparently languished in committee through the end of the May session, which effectively kills it for the time being.  The danger of such bills is that they tend to leach into “sister” states.  The demise of the Vermont Bill is a positive development for franchisors and helps strengthen the franchise community in general because it protects the general integrity of franchise systems.

• The pros and cons of the three options: buying an existing business; purchasing a franchise; or building your own business.
• Intellectual property issues, such as trademark or copyright concerns.
• How to negotiate commercial leases and other vendor contracts.

“…and to protect franchisees from unreasonable termination by franchisors that may result from a disparity of bargaining power between national and regional franchisors and small franchisees. The legislature finds that these protections are necessary to protect not only retail businesses, but also wholesale distribution franchisees that “through their efforts” enhance the reputation and goodwill of franchisors in this State. Further, the legislature declares that the courts have in some cases more narrowly construed the Franchise Practices Act then was intended by the legislature”.

This week's Franchise Law Podcast is presented by  Adam J. Siegelheim of Stark & Stark's Franchise group.