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Franchise Agreements Franchisors Franchise Fees

Offit Kurman

Understanding the FDD and Franchise Agreement Before You Invest

Offit Kurman on

Franchise Agreements are typically drafted by the franchisor and presented on a “take it or leave it” basis. These contracts often impose strict controls over how you operate your business — from approved vendors and...more

Lewitt Hackman

Franchisor 101: Convenient Franchise Practices

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A New Jersey federal district court granted summary judgment in favor of 7-Eleven, Inc. in a dispute with a franchisee. The franchisee signed a franchise agreement to operate a 7-Eleven store in Princeton, New Jersey,...more

Lewitt Hackman

Franchisee 101: Insurance Franchisor Cannot Mitigate Franchise Claims

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A Wisconsin federal district court allowed an insurance company’s field representative’s allegations that his representation agreement was an unregistered franchise to proceed beyond the pleading stage....more

Lewitt Hackman

Franchisee 101: Transaction Totaled

Lewitt Hackman on

Franchisee Cipercen, LLC operated several Meineke Car Care Centers. By 2017, Cipercen owed $550,000 in unpaid franchise fees to Meineke and decided to sell the franchises. Cipercen believed Meineke offered to waive the unpaid...more

Fox Rothschild LLP

 Recent Illinois Case A Reminder of Broad Scope of “Franchise Fee” Element

Fox Rothschild LLP on

The recent case of Rhine Enters v. Refresco Beverage out of the federal district court of the Southern District of Illinois should be a reminder to licensors and manufacturers that avoiding the “fee prong” element of a...more

Kilpatrick

ASC 606 and Its Impact on the Franchise Industry

Kilpatrick on

Revenue is a key component of all businesses, including franchisors, and it is important that counsel to franchisors have an understanding of the potential effects that accounting changes relating to revenue recognition can...more

Lewitt Hackman

Franchisee 101: A Lifeline Franchise?

Lewitt Hackman on

When you pay your phone bill, part of the taxes go into a fund used by the government to subsidize cell phone service to qualifying individuals, under federal and state Lifeline programs. Phones typically reach the end...more

Lewitt Hackman

Franchisor 101: New Revenue Recognition Rule for Initial Franchise Fees

Lewitt Hackman on

Most franchisors’ annual franchise registration renewal deadlines are a few months away. Nevertheless, franchisors should contact their accountants now regarding a new revenue recognition rule issued by the Financial...more

Lewitt Hackman

FRANCHISEE 101: Rocky Road to FDD Disclosure

Lewitt Hackman on

An ice cream parlor franchisor in Ohio, Handel Enterprises, Inc., must defend claims that it violated the California Franchise Investment Law (CFIL) for failing to disclose its amended franchise disclosure document (FDD) to a...more

Lewitt Hackman

FRANCHISEE 101: Thirty-one Flavors of Fees (Or Just One)

Lewitt Hackman on

Baskin-Robbins charges a dairy supplier a so-called "commercial factor" fee for the right to make and sell Baskin-Robbins proprietary ice cream to franchisees. The supplier's pricing to franchisees includes an amount equal to...more

Lewitt Hackman

FRANCHISOR 101: State Taxes on Franchise Fees

Lewitt Hackman on

Franchisors collect weekly or monthly "franchise fees." In many cases, fees are for particular services, such as marketing assistance or IT support. In franchising, the parties may be in any number of different states: for...more

Lewitt Hackman

FRANCHISOR 101: Outdated FDDs and Unregistered Franchises

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The California Department of Business Oversight ("DBO") recently issued three Orders against franchisors for violating California's franchise laws....more

Lewitt Hackman

FRANCHISEE 101: "Two Wrongs Don't Make a Right"

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At one time or another, many people have occasion to be renters who feel mistreated by a landlord. This may be due to delays in repairs, responses, or just turning on the heat. A typical reaction is the temptation to...more

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