Franchising

Kaufman & Canoles’ Franchise Practice lawyers help franchisors and franchisees start, expand, and run their businesses. Well-versed in federal and state franchise laws – one of our attorneys has been granted the prestigious Certified Franchise Executive (CFE) designation from the International Franchise Association – we guide large and small franchisors, as well as multi-unit and single-unit franchisees, to success across the United States and internationally.

Clients come to us for a broad range of assistance. We help entrepreneurs and business owners navigate the franchise registration process and guide them through the purchase and sale of franchises. We draft and negotiate franchise disclosure documents (FDD), franchise and related agreements, and other documents for both franchisors and franchisees. We counsel owners on day-to-day operations, issues, problem resolution, and maintaining the smooth operation of their systems. And we resolve various franchise disputes, especially when there is a breach of the franchise agreement.

Franchisors and franchisees alike appreciate our comprehensive advice and deep understanding of their needs and the challenges they face. They count on us to guide them throughout the life of their business, drawing on our lawyers for assistance with:

Franchise Consulting and Problem Solving

• Advice and counseling on the operation of a franchise business, including development and enforcement of system standards and franchise compliance training and counseling

Franchise Documentation

• Preparing, registering, and renewing Franchise Disclosure Documents (FDDs), franchise and development agreements
• Reviewing and negotiating FDDs, franchise, and development agreements
• Reviewing and negotiating personal guarantees

Referrals to other Professionals Knowledgeable about Franchising (e.g. CPAs)

Recommending formation of the best form of Business Entity and Business Licensure

• Business entity selection, limited liability companies, corporations, partnerships, joint ventures
• Assisting with Alcoholic Beverage Control licenses

Litigation and Dispute Resolution

• Advice and assistance in termination of franchise relationships
• Litigation over failed franchise relationships

Protecting Intellectual Property

• Copyrights
• Trade secrets
• Enforcement of covenants not to compete

Our lawyers work with large and small franchisors and multi-unit and single-unit franchisees in a wide variety of industries.

• Provide general franchise advice and consultation to franchisors
• Represent franchisors as general counsel in drafting franchise disclosure documents, franchise and related agreements, franchise registration issues, and on trademark matters
• Represent both franchisors and franchisees in cases involving breach of franchise agreement
• Regularly represent franchisees in purchasing and selling single unit and multiple unit franchises
• Regularly represent franchisees (area developers and single unit) in evaluating franchise offerings and related work (setting up a legal entity, negotiation of leases) for start-up franchisees

Website links of interest to franchisors and franchisees

International Franchise Association – Principal trade association representing the franchise industry http://www.franchise.org

Federal Trade Commission Guide to Buying a Franchise https://www.ftc.gov/tips-advice/business-center/guidance/consumers-guide-buying-franchise

New York Attorney General report on Buying a Franchise https://ag.ny.gov/sites/default/files/franchise_booklet.pdf

Illinois Attorney General – Before You Buy a Franchise – Understand Your Risks – http://www.ag.state.il.us/publications/pdf/b4ubuy.pdf

State Regulators http://www.scc.virginia.gov/srf/cons/complaint.aspx

For due diligence investigations of franchisors http://www.unhappyfranchisee.com

For free business advice for new franchisees/small business owners – Hampton Roads Small Business Development Center http://www.hrsbdc.org

The Franchise Registry – Small Business Administration Franchise Finance Website http://www.franchiseregistry.com

• Franchising Newsletter – New Principles of Franchising from the IFA Legal Symposium
• Franchising Client Alert – North American Securities Administrators Association Sets New Standards
• Stephen E. Story Named Franchise Times “2020 Legal Eagle”
• Franchising Client Alert
• Top 10 Things A Potential Franchisee Should Know About A Franchise Offering
• Franchising Client Alert – June 2019
• How Much Money Does it Take to Franchise My Business?
• A Word on Financial Performance Representations
• Five Commandments for New Franchisors
• Systems or Habits? – Are You Really Ready to Franchise Your Business?
• Where’s My Right to Terminate? – Why You Need a Franchise Lawyer to Review Your Franchise Agreement
• Enforcement and Risks of Post-Termination Buybacks and In-Term Step-In Rights
• Franchising Client Alert – March 2019
• Restaurant Client Alert – Beware of Using Your Restaurant Name in Multiple Locations Without Federal or State Service Mark Protection
• Local Organizations Partner to Host Workshops to Provide Insight on Franchise Ownership
• Don’t Pour Your Profits Down Your Competitor’s Drain
• Stephen E. Story Selected as “2014 Legal Eagle” in National Publication
• Franchising 101 – Legal Basics
• What is a Franchise and Why Does it Matter?
• Go To the Head of the Line: How to Get Registered, Amended, Renewed or Exempted
• From Subway to Supercuts
• Franchising Update – December 2010
• Franchising Your Business
• Franchising Legal Update – Spring 2009
• What To Do When a Franchising Deal Goes Bad
• Buying Issues of Note
• Contractual and Business Aspects of Structuring Supplier Agreements
• Franchising Legal Update – Fall 2007
• Franchising Legal Update – Winter 2007
• Emergency Response Planning: A Critical Investment
• Investigating Franchising Your Business
• Franchise Agreement Drafting
• Franchising Your Business – 2005 Version
• Franchising Issues
• Top Red Flags with a Franchise, Business Opportunity or Similar Offering
• Looking Anew at Accounting Duties
• Before Investing in a Franchise