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Why would I want to franchise?

There are three main reasons why you would want to franchise your business: Better use of your skills Efficiency Money Better Use of Your Skills Personnel managers have a guideline: “In your first year on a job, you will learn 80% of what you are ever going to learn about that job.” If you have Read More

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A prospective franchisee wants me to send his attorney a copy of the franchise agreement in Word. Should I?

I avoid sending franchise agreements in Word.  I prefer to send them in PDF, to help me control the negotiation process.  Here’s why. A franchisor client sent its franchise agreement to a prospect’s attorney in Word.  The attorney revised the agreement and sent it back to my client.  When my client sent it to the Read More

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Should I Have Prospective Franchisees Get an Attorney?

As a general rule, “yes.” A sophisticated business professional may already have an attorney.  However, if the attorney is not a franchise specialist, you should suggest that the attorney bring a franchise specialist into the deal on a consulting basis.  If your prospect is not a business professional, you should definitely recommend that he or Read More

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Do Franchise Agreements Have to be Long?

No.  Franchise agreements can be short.  The shortest franchise agreement I currently use is 8 pages (plus 9 pages of exhibits, for a total of 17 pages).  The longest I use is 71 pages (plus 103 pages of exhibits, for a total of 174 pages). Why is one so short and the other so long?  Read More

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Which is Best: Arbitration or Litigation?

Neither is “best.”  “Best” is where the franchisor and franchisee have a good enough relationship that if a problem arises, one picks up the phone and calls the other.  They resolve it without the need for attorneys.  However, it takes two to tango.  We all know people who will not take “yes” for an answer. Read More

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Do I Use Forms? Yes. Here’s How and Why.

One of the first questions a new franchisor client asks is, “Do you use forms?” Using “forms” gets a bad rap.  “Forms” does not have to mean “canned, generic boilerplate where the user just fills in blanks.” I have 24+ years of experience giving legal advice, negotiating transactions, and drafting outstanding legal documents.  These documents Read More

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Are Your Agreements Hurting Your System?

Although I concentrate my practice on representing franchisors, I represent franchisees on occasion.  It makes me a better franchisor attorney to see franchise documents from the other side of the table. I recently represented a franchisee in a multi-unit deal.  The franchisor’s agreements were an example of what every franchise professional should know: if agreements Read More

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New Requirements for Multi-Unit Franchisors

    The North American Securities Administrators Association (“NASAA”) publishes guidelines and commentary about the federal franchise rule (“The Franchise Rule”).  NASAA does not, strictly speaking, have regulatory authority.  However, its guidelines and commentary are considered persuasive authority.  State regulators use them when they evaluate franchise offering documents, and they require franchise offering documents to Read More

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Hello world!

Welcome to Martindale Hubbell Websites Sites. This is your first post. Edit or delete it, then start blogging!

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Two Bad Outcomes

On the Firm’s website, I urge franchisors to engage a skilled and experienced franchise law attorney to: (i) help develop the structure the franchise system; (ii) ensure that the franchisor complies with all applicable laws; (iii) draft the large, complex franchise documents for the system; and (iv) register the franchise offering, or obtain exemptions from registration, in states that Read More

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RICHARD E. JOHNSON
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