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
The SBA Franchise Directory is officially back online from June 1, 2025, and with it comes a series of critical updates for franchisors and franchisees discussed in the virtual briefing led by Stephen Olear, Senior Franchise...more
A positive development for franchise systems seeking to streamline the SBA loan approval process for their franchisees is coming this summer. The new version of the SBA Loan Origination Policies and Procedures for Lender and...more
January officially starts the “Franchise Disclosure Document (“FDD”) Update Season”. And for franchise lawyers that focus on representing franchisors in the development of FDDs and related tasks, it is arguably the most...more
The U.S. Federal Trade Commission's (FTC) latest policy statement aims to dictate the outcome of contract negotiations between franchisors and their franchisees and to limit the potential negative impact on franchisees of...more
A bill passed by the California Senate on May 22, 2024, Senate Bill No. 919 (“Bill 919”), will address a gap in the regulation of franchise sales – namely, a lack of transparency regarding the role and background of...more
On April 23, 2034, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. The new rule is not in effect yet. It will become...more
The Securities Division of the Indiana Secretary of State issued a press release this week announcing that it filed an administrative complaint against Florida based Mac and Cheese Franchise Operations LLC and its parent...more
A federal court in Illinois recently granted partial summary judgment to LMLC Franchising, LLC (LMLC-F), LMLC Management, LLC (LMLC-M), and Todd Barnhardt on claims brought by John Doe and Aylin & Ramtin, LLC (A&R) for breach...more
Attorneys representing Latin American brands in the United States should understand that entry into the US market requires careful strategy, planning and due consideration for the variety of legal issues that arise from...more
Drive down almost any busy street, and you'll see numerous examples of well-known franchises, from McDonald's to Ace Hardware. You may have considered opening a franchise and wondered about the potential rewards and...more
Historically, the Federal Trade Commission (FTC) has shied away from regulating the substance of franchisor-franchisee relationships. A recent FTC press release, however, suggests this may soon change. If so, it is by no...more
Federal law requires franchisors to update their franchise disclosure documents (“FDD”) within 120 days after their fiscal year end (“FYE”). State registrations must also be renewed annually. Here are ten best practices for...more
On November 3-4, 2022, at the American Bar Association’s 45th Annual Forum on Franchising, Marc A. Lieberstein, Partner at Kilpatrick Townsend, and Lee Plave, Partner at Plave Koch PLC, presented Coming To America: So You...more
When a business is deciding to franchise its concept, the task “to-do” list is never-ending. Identifying the most critical issues and deciphering what are “necessities” vs. “nice-ities” for an emerging brand was the topic of...more
In the last year, we reviewed three attacks on franchising, questioned whether franchising was in the crosshairs of federal regulators and legislators, and concluded that the answer was yes....more
A Minnesota federal court ruled in favor of a franchise broker on summary judgment. The court dismissed misrepresentation claims brought by a military veteran who alleged unlawful inducement to invest in a failed kickboxing...more
Earlier this year, we questioned whether franchising was in the crosshairs of federal regulators and legislators. It appears that the answer may be a resounding yes....more
On April 14, Kilpatrick Townsend’s Brand Licensing and Franchise Partner Marc Lieberstein joined Jason Adler, General Counsel at Cellairis, a global franchisor in the wireless accessory and repair retail space, Janaki J....more
The Feds may be targeting franchising. In September 2020, Rohit Chopra, one of the five commissioners on the Federal Trade Commission (FTC), declared on Twitter that “[franchise] regulators must stop unfair, deceptive,...more
Why Make an FPR? According to a recent study, franchisors that make a Financial Performance Representation (FPR) sell more franchises than those that choose not to....more
Item 19 of the Franchise Disclosure Document (FDD) can provide information on how a prospective franchisee may perform financially. Historical financial performance representations (FPRs) may be made if the franchisor has a...more
Franchisors renewing their Franchise Disclosure Documents (FDD) for 2020 with the intent of actively resuming franchise sales activity may be wrestling with how best to disclose the impact of the COVID-19 Pandemic on their...more
Good things come to those who wait … except when you are referring to state franchise registration timelines. This is one of the busiest times of year for franchisors with fiscal year ends that coincide with the calendar...more
Several high profile ransomware attacks have recently rocked the franchise world fomenting uncertainty and anxiety about franchisors’ legal obligations and liability. Ransomware attacks essentially kidnap a company by...more