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Franchisors Franchises Franchise Fees

Offit Kurman

Understanding the FDD and Franchise Agreement Before You Invest

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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

Fox Rothschild LLP

Not All Payments Qualify as “Fees” under State and Federal Definitions of a Franchise

Fox Rothschild LLP on

A recent court case (Cognex Corporation v. Air Hydro Power LLC) between a distributor and manufacturer is a reminder to franchise attorneys that not all amounts paid by a licensee to a licensor qualify as a “franchise fee”...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

Troutman Pepper Locke

Streaming and Franchise Fees: Implications for Communications Infrastructure

Troutman Pepper Locke on

The advent of video streaming services has diminished revenues local governments collect from cable video franchise fees. In response, many local governments scrutinized the laws and regulations authorizing the collection of...more

McAfee & Taft

Franchising cannabis businesses

McAfee & Taft on

Since the adoption of state legal medical marijuana in Oklahoma in 2018, commercial licenses in the industry have proliferated. Many prospective licensees lack the relevant cannabis experience to fully develop their business...more

Lewitt Hackman

New Revenue Rule Affects Franchisors

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An updated rule issued by the Financial Accounting Standards Board (“FASB”) will again change when most franchisors can recognize revenue in their financial statements from the sale of their franchises and their collection of...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: If it Walks Like a Franchise, Talks Like a Franchise, it Might Be a Franchise

Lewitt Hackman on

Twin City Lodging LLC bought a Best Western Hotel in Mankato, Minnesota, then entered into a “Membership Agreement” with Best Western International. Best Western granted Twin City a license to operate the hotel under Best...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: 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

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