Attorney Blog

Improvement of Franchise System Proves Effective for Houston Pizza Franchise

Wed, 18 Jan 2012 08:00:00 EST

I am a big fan of articles and information focused on franchisors focused on “improving their existing franchise and business systems”.

In "Russo's New York Pizza Ready for Expansion", Pizza Market Place: Deep Industry Insights, it discusses some of the steps that the franchisor of Russo New York’s Pizzeria and Russo Coal-Fired Italian Kitchen (a Houston-based pizzeria and Italian restaurant) has taken to improve sales during a tough economic climate.

In the article, Anthony Russo, an officer of the Franchisor, acknowledges the negative economic climate but does emphasize “Russo’s” focus on is implementing strategies “to ensure continued success for existing restaurants and future franchisees”. One strategy that is discussed is the introduction of a new menu.

Unfortunately, the article does not address or discuss other strategies that Russo’s may or may not be implementing. Certainly – for a restaurant – the constant improvement of a menu and other offerings are critical. However, I would be extremely curious to see what other systems that Russo’s may or may not be considering. For example, is the new menu designed to solidify Russo’s existing customer base or are they looking to expand their market? Also are there systems that may or may not be implemented to improve franchisee profitability and reduce costs.

I certainly would be interested to learn more. However, I could never criticize a franchisor that is at least aware of the importance of improving franchise systems.

For information on Improving Your Franchise we recommend reading:
“The Franchise Formula: A Guide for Franchising Your Business in the New Economy”

If you are a franchisor, what steps are you taking to improve your business systems and the profitability of your franchisees? If you are considering “franchising your business” what “system advantages” will your franchisees benefit from? These are certainly important questions – especially in the current economic climate.

Continue reading about Improving Your Franchise Practices

Partnership Disputes: Protection for Oppressed Minority Shareholders

Tue, 10 Jan 2012 08:00:00 EST

Minority Shareholder Rights: Protection from Oppression
Many times when I am contacted and consulted by a minority shareholder, partner or member (someone who controls less than 50% equity interest) for advice and a plan for dealing with a lock-out or a majority intent on squeezing the value of out of the minority, is a genuine concern about either a onerous shareholder agreement (one where the majority controls) or the simple fact that he or she, as a minority shareholder, may be "out voted". Basically, minority shareholders are concerned that their non-controlling interest or onerous shareholder agreement will, effectively, render their equity interest worthless.

While the concern that I have described exists for good reason, minority shareholders need to know, beware of and discuss with his or her shareholder attorney, the "fiduciary rights and obligations that are due to minority shareholders and how these rights may be used to fight off oppressive acts. Here are some factors to consider:

Acts of Oppression - Acts of oppression come in many forms and are, generally, (i) actions taken by the majority or controlling shareholders that, (ii) appear to be legal or, at least, consistent with the technical terms of the shareholder agreement / law but (iii) in actuality, are actions that are taken to simply, deny minority shareholders the rights and value associated with their shares. Examples include the diversion of funds through alternate forms of compensation to the majority and refusing to issue distributions.

How to Minority Shareholders Must Fight Back the Majority - There are many courses of action that a minority shareholder may adopt but the one that is the topic of this article relates to the fiduciary duties and obligations that exist between all shareholders. That is, under New York law the courts impose on all shareholders, partners and members a fiduciary duty. This fiduciary duty requires that with regard to the corporate entity the shareholders / partners act in good faith and to deal fairly with one another. With regard to minority shareholders this fiduciary duty requires that the majority not engage in oppressive actions. That is, the majority must act in good faith and not for the purpose of harming the minority - even if the majority's actions appear to be technically permitted by a shareholder agreement or otherwise.

This is a significant issue one that is critically important to minority / non-controlling shareholders and partners. If you are faced with a situation where the majority / controlling partners are acting for the purpose of forcing a buy-out or nullifying your interests, understand that you may posses many more rights than those stated in your agreement. Understand that your partners owe you a fiduciary duty and if you are faced with litigation you very may well possess significant claims for legal relief.

For information about the rights of minority shareholders and partners and how Shareholder Lawyer Charles N. Internicola, Esq. assists minority shareholders, call Mr. Internicola and his staff at 800.976.4904

Why You Must Look at Your Shareholder agreement Differently when Faced with A Shareholder or Partner Dispute

Fri, 30 Dec 2011 08:00:00 EST

When faced with a partnership or shareholder dispute, your shareholder agreement / operating agreement takes on a whole new life. That is, rather than serving as the governing document to manage your continued and on-going business relations, it may now serve as either an impediment or asset to the wind-down or dissolution of your partnership relationship.

There are many shareholder or operating agreement clauses that may be relevant to your dispute, such as,

Provisions pertaining to non-competition;
provisions pertaining to dissolution or wind-down;
provisions pertaining to a triggered buyout of one partner or shareholder; and
provisions pertaining to valuation.

Although this may sound counter intuitive but even if you want to trigger a dissolution, partner buyout or business valuation, sometimes, it is best to avoid directly pursuing this rights under your shareholder or member agreement.

Why? Because many times there are unintended consequences and based on the traditional structure of the more common New York and New Jersey partnership agreements, triggering these events may reduce your negotiating leverage. For example, rather than having your partner account for a breach of his or her obligations to your business, your partner may now "sit back" with his or her attorney and simply demand payout based upon a buyout event that you triggered. So always be cautious and clearly plan out your strategy with your lawyer before you start invoking remedies contained in your shareholder or membership agreement. Always be cautious about triggering a dissolution or buyout.

To Learn More about Business or Partnership Disputes, Contact Partnership Lawyer Charles N. Internicola at 800. 976. 4904

Worst and Best Fitness Franchises to Buy: 2011 SBA Loan Default Rates

Tue, 20 Dec 2011 08:00:00 EST

When evaluating a prospective investment and purchase of a franchise one of the many due diligence factors that should be evaluated includes SBA loan default rates. A high SBA loan default rate should be viewed as a serious warning sign.

For information on buying a franchise we recommend reading
“An Entrepreneurs Guide to Purchasing a Business or Franchise”

Below is a list of the best and worst fitness franchises “based upon” the 2011 SBA loan default rates. Franchises are listed from highest to lowest failure percentages (please keep in mind not all fitness franchisees are listed).

Franchise Brand                                               Failure %
Shapexpress                                                      66.67%
Velocity Sports Performance                            57.89%
My Gym                                                             53.00%
World Gym & Fitness Center                           28.57%
Fitness Together                                             28.00%
Curves for Women                                            22.00%
Fitness for Life Franchise Corp                         21.05%
Gold’s Gym                                                        19.00%
Little Gym                                                          17.00%
Snap Fitness                                                      12.00%
Jazzercise                                                          10.00%
Anytime Fitness                                                   8.00%
Planet Fitness                                                    0.00%

While a high default rate is a definite warning sign keep in mind that a low default rate (by itself) should not be relied upon as a basis for your franchise investment. Consider that a low rate may be attributed to the fact that the franchise is new or that the franchisees do not utilize or qualify for SBA loans.

Continue reading about Buying a Franchise

Product Labeling Law: ANSI, UL, CPSC - Some Thoughts for Product Importers and Distributors

Wed, 30 Nov 2011 08:00:00 EST

For US companies engaged in the design, production, distribution and sale of consumer products, one significant issue that always exists relates to your product labeling. Labeling not in terms of tradenames and trade dress (a separate issue and topic) but, rather, warning labels that are mandated and suggested by a broad range of government agencies and industry associations.

Why is this Important?
The most obvious reason (which you are aware of) is that you are a target by personal injury lawyers looking to blame you for what in many cases relates to the negligence of an injured individual. Also there are pleanty of "product labeling lawyers" out there looking to sue you over your product labeling - one example being California's Proposition 65. Also the right labels will help cut off lawsuits and avoid disruption to your relationships with the vendors and retailers that your business relies on.

Some Things to Be Aware of:
When it comes to product labeling the range of issues are as diverse as the multitude of products and services in the market place. Labeling requirements vary for hazardous goods and materials and whether or not the product is assessable to children. So, here is some base information that your should be aware of:

ANSI - The American National Standards Institute (ANSI) is a private not for profit organization that issues certifications and standards. ANSI offers accreditation programs for a wide range of products ranging from appliances, building materials, food service equipment to plastic piping and other manufactured product.
UL - Is a membership organization that offers and promulgates, among other things, safety standards and procedures for various products. Product certification and UL approval is a paid for service. However the UL certification has been broadly adopted and recognized by consumers and large box retailers.
CPSC - The Consumer Product Safety Commission is a government agency. Charges with protecting consumers, the CPSC has promulgated thousands of regulations relating to packaging and safety standards for an assortment of consumer products. No matter what product you are producing or distributing, chances are, the CPSC has issued a mandatory regulation respecting that products packaging or construction. The following is a link to the CPSC's Index of Regulated Products.

So What is The Point that I am Advocating for Manufacturers and Distributors?

First Point, the information in this post is basic but I raise it to emphasize or, at least, remind you that although your product may have a long established history or be comprised of a basic construction, you nevertheless must ensure that the product meets mandatory government requirements (i.e., CPSC) and industry norms (i.e., ANSI and UL). In fact CPSC, ANSI and UL are just a few - there are many other applicable regulations.

Second Point. Many times importers and distributors rely on their foreign factory for product labeling and safety or, worse, just copy competitor labels. The problem is that many factories and many of your competitors may have no clue and they are guessing at their warnings and packaging.

Final Point. Product labeling is not rocket science. Establishing set procedures with your product labiling counsel or outside counsel is almost always a cost effective endeavor - especially when factoring in insurance premium increases and lost retailer relationships when the wrong label creates litigation risk and exposure.

Franchise Litigation: Understanding the Role of Discovery in Franchise Litigation

Wed, 30 Nov 2011 08:00:00 EST

Can A Default Judgment Be Entered Against a Franchisee - Even if The Franchisee Answered the Complaint?

Answer: Yes, when the franchisee defendant continuously fails to comply with a discovery order. In Jackson Hewitt, Inc. v. Barnes Enterprises, et al. United States District Court - District of NJ) the court entered default judgment against a franchisee defendant who had answered the complaint but failed to comply with the courts discovery order. The entry of a default due to a discovery failure is an uncommon remedy but, from the facts of this case appears appropriate. Especially since the defendant franchisee actively litigated a number of issues in the case but, selectively, ignored all discovery obligations.

Franchise Litigation Factors to Consider: Based on the courts decision in Jackson Hewitt, franchisors and franchisees should be aware of the following litigation factors:

For Franchisors: Persistence matters. Far too often litigation counsel overlooks the value of persistently and diligently pursuing discovery. That is, discovery must include indepth demands. Detailed interrogatories (written questions that the franchisee must answer) that force the franchisee to describe and identify their alleged damages and claim against the franchisor, are critical. Many times franchisee counsel is not prepared to respond. Another good point raised by this case is persistence regarding the enforcement of discovery obligations. So, separate and apart from the inherent point of discovery (i.e., to obtain information) there is tremendous litigation strategy and value to pursuing a detailed and diligent discovery plan - one benefit being that the Franchisee cannot sustain its claims.

For Franchisees: When faced with franchisor litigation, it is critical to allocate the right financial and legal resources. Understand that the "franchise litigation process" is extremely important and extensive - that is, you can not ignore discovery and you must plan out your claims and defenses on solid "franchise factors" that are recogized by the courts.

When dealing with litigation, economics play a large factor. Most times, cases settle when the parties proceed with an aggressive litigation and discovery strategy. Interestingly, while a lax approach to discover is, in the short-term, less expensive, it usually leads to an unproductive and never ending litigation track that wastes money and time.

Termination of Your Gas Station Contracts: Renewal Protections Afforded by The New Jersey Franchise Practices Act

Wed, 30 Nov 2011 08:00:00 EST

If you are a service station operator / owner, there are various protections that are afforded to you under the New Jersey Franchise Practices Act. These protections are especially useful when dealing with the termination of your franchise rights, including rights under Commissioner Marketer Agreements. When faced with termination issues relating to your gas station / service station, some important factors to evaluate and consider, include:

The Nature of the Relationship. In the State of New Jersey the methods by which a service station is owned and operated varies from station to station. Some service station owners are independent dealers, some are franchisees pursuant to the terms of a franchise agreement and others are franchisees by operation of law and pursuant to the terms of a Commissioner Marketer Agreement ("CMA"). In the State of New Jersey CMA's are recognized as the equivalent of franchise agreements and station operators who possess a CMA are afforded protections under the New Jersey Franchise Practices Act;
Understanding your Legal Rights. Once you assess your legal status (i.e., whether or not you are an independent dealer, franchisee, or something else) you should now be ready to discuss and review the legal protections that may or may not be available to you. For example independent dealers may not qualify as franchisees and thereby not be afforded protection under the New Jersey Franchise Practices Act. However these independent dealers may be afforded protection under the Petroleum Marketing Practices Act. Franchisees (including CMA's) are afforded protection under the New Jersey Franchise Practices Act.

You Have Options and Protections
As a service station owner or operator, the key factor to be aware of is that irrespective of the nature of your legal relationship , there are legal remedies and rights available to you. So, thoroughly assess and evaluate your "legal status" and the options and protections afforded by the New Jersey Franchise Practices Act and the Petroleum Marketing Practices Act.

Buying a Car Wash In NY or NJ: Some Thoughts for Purchasers

Sat, 19 Nov 2011 08:00:00 EST

This past week a great client closed on the purchase of an automated car wash. Although this transaction closed promptly and went extremely smooth, this deal was preceeded by a transaction that, ultimately was just not good for my client and was anything but smooth. In fact, the prior transaction, unnecessarily, involved an eight month process and, ultimately, fell apart at closing. I know the client is glad - really glad - that the prior deal fell through. Having gone through this process, here are some thoughts that I have for prospective car wash purchasers:

Every Car Wash Transaction is Different. As an experienced attorney with car wash transactions, I can certainly tell you that no two deals are the same. There are many variable factors that make each transaction slightly different and will require that both you and your attorney modify your due diligence efforts. Some variable that will alter your efforts, include:
- Automated verses Hand Car Wash;
- Lease verses Purchase of Underlying Property;
- Whether or Not the Seller will Be Financing a Portion of the Purchase Price;
- The Township and Locality and Rules Respecting Expansion;
- If you Are Leasing the Property, whether or Not the Landlord has a Mortgage on the Property.

Walking Away From a Deal is Not a Bad Thing. Sometimes deals dont work out. I am not talking about unnecessary paper delays that some attorneys sometimes cause but rather real substantive issues that should not be overlooked. Even if you are minutes from finally closing on your deal don't over look problems and always be prepared to walk away. For example, are all the seller's liens satisfied? Is your lease adequately protected? Have you obtained Proper Assurances from the landlord's mortgage holder?

For my client, walking away from "the bad deal" will probably make all the difference in the success of the business that he finally closed on 12 months later. Sometimes delays and "dead deals" happen for a reason.

For Additional Information About Buying a Car Wash in New York or New Jersey,
Get a Free Complimentary of
Charles N. Internicola's "An Entrepreneurs Guide to Purchasing a Business"

Partnership Disputes: When Your Partners Construct a "Pre-Text" to Terminate Your Legal Rights

Tue, 25 Oct 2011 08:00:00 EST

When it comes to partnership and shareholder disputes many times the disassociated/lock-out partner is accused of, somehow, violating his or her "fiduciary obligations". These allegations come in many forms and include allegations of (a) theft, (b) misappropriations of assets and (c) diversion of business opportunities. Many times this all amounts to a pretext and excuse to just get you out.

This happens far too often and if you are a partner/shareholder/member and locked out of your own company, some factors to know, include:

Do not give credence to the "alleged" wrongful acts that you are claimed to have undertaken. No one is perfect and while you must always be accountable for your actions your partners should not and are not permitted to just "unilaterally throw you out".
Gain perspective and understand that you are really involved in an economic bottle. Your partners may be utilizing a minor imporprietary as an opportunity to drown down and, basically, steal your equity. So no matter the allegations stand firm respecting the equity and ownership interests that you have earned.

Why do I mention the foregoing? Because on a daily basis I speak to many hardworking and intelligent shareholders/partners/members who must, unfortunately, defend their own economic interests from their own partners. Usually they all face allegations of improprietary that, usually, amount to not much.

For additional information about protecting your partnership interests, we recommend:
"Initial Factors to Consider when Faced with a Partnership Dispute"

Franchising versus Licensing

Tue, 25 Oct 2011 08:00:00 EST

This is a topic that comes up often. Many times I am contacted by a business owner who, by all accounts, has created a financially profiable licensing program but is faced with franchise violation claims. Also clients frequently question if licensing is better than franchising.

Licensing is a Component to Franchising

To start with it is importantt to understand that "licensing" is a component to "franchising". That is every franchise includes a license but not ever license is a franchise.

What is the Difference?

Licensing, traditionally, is limited to the grand (by a licensor) of a license permitting a third party (licensee) to utilize the licensor's trademarks. From a legal standpoint franchising can be described as a "super license" where the franchisor grants the franchisee the license and right to use the franchisors trademarks and systems. The "plus elements" that legally convert a license into a franchise, include factors, such as:

(a) Payment of a fee;
(b) Payment of a royalty;
(c) Control over advertising programs; and
(d) control over franchisee opportunities.

Proceed with Caution
From a legal standpoint licenses are extremely limited. Many times what you believe to be or call a "license" is in fact a franchise. The laws vary amont the states and in many instances are intentionally ambiguous. So, proceed with caution and before structuring and proceeding with a "licensing program" speak to your attorney to ensure that the proper restrictions are in place and that you do not cross the line into franchise territory. Consider if you may be better off by just structuring a franchise - many times you will be better off.

To continue reading information about the option to franchise your business read:
"How to Franchise Your Business"

Quiznos Franchisee Association Formed

Wed, 21 Sep 2011 08:00:00 EST

Quiznos has dealt with franchise failure problems over the years and for Quiznos franchisees franchise failure is all too realistic of a possibility with the issues Quiznos has suffered from. In an effort to mitigate against Quiznos franchisee failure a franchisee association has been formed. The Quiznos Franchisee Association (QZFA) is an independent association of franchisees (IAOF) sanctioned by Quiznos Corporate to represent the franchisees interests and will take the place of all other previously established Quiznos Associations (including TSFA).

Kevin Tackett, president of the QZFA, said "we need to align ourselves in order to make a positive change in the business model and re-establish the value of the Quiznos brand". Both sides hope to help strengthen the franchisor-franchisee relationship through the association and long term hope to improve franchise operations and increase profits.

From my prospective Quiznos definitely has "franchise failure" issues that need to be addressed. Hopefully this franchisee association will take a proactive approach to protecting its member franchisees and the Quiznos franchise system.

New York Shareholders: Right to Inspect Books and Records

Wed, 07 Sep 2011 08:00:00 EST

When faced with a shareholder dispute, one statutory right that is commonly overlooked related to a shareholders "right" to inspect the company's records. This right is particularly important to minority and/or non-managerial shareholders who lack access to the corporations records. When faced with a dispute with a controlling shareholder the invocation of this statutory right could prove useful in (a) obtaining information and (b) establishing your overall litigation strategy.

Pursuant to New York Business Corporation Law Section 624:

Obligation to Maintain Corporate Records

Shareholder Right to Inspect Corporate Records

Shareholder Right to Demand Financial Statements

When faced with a shareholder dispute - far too often - minority shareholders and their lawyers overlook these critical inspection rights.

Recovery of Legal Fees in Franchise Litigation

Wed, 07 Sep 2011 08:00:00 EST

In the recent decision of Bennigan's Franchising Co, LLC v. Team Irish, Inc., et al, the Federal District Court for the Northern District of Texas, awarded the franchisor the partial recovery of legal fees. The legal issues involved in this case involved typical violations of a development agreement and the non-payment of royalties. The parties ultimately stipulated to a money judgment in favor of the franchisor respecting the portion of the franchisor's claims related to unpaid royalties.

What is of interest in this decision is that the issue of attorney fees was left open. After evaluating the express terms of the Franchise Agreement the court held that the franchisor was a "prevailing party" even though the parties settled and that the franchisor recovered only as to a portion of the franchisors overall claims, the franchisor was nevertheless entitled to recover fees. The amount of the legal fees were, however, limited to those fees directly related to the unpaid royalty claim.

Question for franchisors and franchise lawyers? Should your franchise agreement "attorney fee" provision be modified to specifiy the full recovery of "all legal fees" should you "prevail" as to any legal claim?

Massachusetts Fair Franchising Bill: What Would It Mean for Franchisees in Massachusetts?

Tue, 06 Sep 2011 08:00:00 EST

Massachusetts Senator Brian A. Joyce was recently interviewed by Blue MauMau to find out additional information about the Fair Franchising Bill introduced in Massachusetts. Senator Joyce offered some insightful information into the intentions of the bill. Although the franchising bill does not necessarily have all of the kinks ironed out of it as of yet they are working towards creating a solid bill that's intention is to ensure that franchisees in Massachusetts are given a fair chance at entrepreneurial success.

Some of the key points addressed during the interview between Senator Brian A. Joyce and Blue MauMau were the following:

Ensuring that the state sufficiently protect franchisees by not allowing to have a franchise agreement terminated by the franchisor without good cause;
Possibly delineate some examples of what "good cause" to terminate a franchisee would consist of but not providing a strict and extensive list of reasons for good cause. He believes it is best to provide some examples of good cause so that there is some direction for the court to understand the legislative intent of the bill but without binding them to a set of situations;
The large possibility that passing a bill protecting franchisees in Massachusetts will encourage more people to purchase franchises and in turn employ more people in the state.

For additional information regarding state specific franchise laws in your state that may offer specific protection to franchisees contact Charles N. Internicola at 1-800-976-4904 or for more information about purchasing a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise".

Franchisors: Financing Options to Increase Franchise Sales

Fri, 02 Sep 2011 08:00:00 EST

In a recovering economy where small business loans are still hard to obtain some franchisors may find one reason their prospective franchisees may not follow through with purchasing a location is because of a lack of finance options. Some franchisors are taking extra steps to make efforts to "bridge the gap" between prospective franchisees and loans facilitate franchise growth.

In a recent article on the Wall Street Journal Online, "Franchisers Focus on Loans", some franchisors are finding that offering financing assistance is a critical tool for expanding system growth. Among the many franchisors offering financing assistance, Popeyes, IHOP and Maaco have hired outside consultants to franchisees in identifying financing options. The reason for this recent interest in financing assistance are the alarming statistics that show that 39% of franchisors have identified the lack of franchisee financing options as a major factor inhibiting sales.

For additional information about issues affecting franchisors in today's economy request a complimentary copy of "The Revised Franchise Formula: A Guide to Franchising Your Business in the New Economy". For immediate assistance contact franchise lawyer Charles N. Internicola regarding our Franchise Programs at 1-800-976-4904.

Money Back Guarantees When Buying a Franchise: Reliable or Not?

Fri, 02 Sep 2011 08:00:00 EST

Entrepreneurs interested in buying a franchise are sometimes reluctant to invest tens or hundreds of thousands of dollars of their hard-earned money into a franchise opportunity that they are not completely sure of. When searching for the right franchise to purchase this doubt often hinders people interested in purchasing a franchise from going through with a deal. Some franchisors are now trying to introduce a new way of reassuring their potential franchisees that their money will not go to waste and will indeed turn into a well prospering and profitable business.

A recent article by Business News Daily, "Franchises Offer Money-Back Guarantees", reports that one company has developed their own way of reassuring potential franchisees that their franchise will produce the profit franchisees are looking for. Service Brands International, the parent company of Molly Maid, Mr. Handyman and ProTect Painters, is currently offering a money-back guarantee to new franchise owners. If the franchisee does not experience gross sales in the amount of $150,000 within the first 18 months of purchasing, the franchisor will refund the franchise fee to the franchisee. Service Brands International states that "the main reason behind our money-back guarantee is to convey our confidence to our franchise candidates that we strongly believe in our operating models".

So is this a good thing or bad thing? My opinion - neither. The reality is that, as a franchisee, what good are "guaranteed gross sales" when "profits" are really what you should be interested in. Also, in terms of a refund/money back promise, keep in mind that you will be investing much, much more than the amount of your initial franchise fee. The guarantee sounds great but don't base any franchise purchase decision on this promise. You have too much at stake. We suggest reading "Issues to Avoid When Buying a Franchise: A Preventative Approach is the Best Method for Avoiding Franchise Failure".

For additional information about buying a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by franchise lawyer Charles N. Internicola or for assistance in purchasing a franchise contact our franchise law office about our Franchise Protection Program at 1-800-976-4904.

Proposed "Universal Franchisee Bill of Rights"

Tue, 30 Aug 2011 08:00:00 EST

The Coalition of Franchisee Associations, Inc. (the "Association") has recently proposed a "Universal Franchisee Bill of Rights" that, according to the association is been drafted and designed to cure franchise agreement "imbalance[s]...that favor the franchisor". The proposal is an excellent effort and certainly something that prospective, current franchisees and franchisors should evaluate.

From a franchisee perspective I must again caution that you must take a proactive approach in evaluating and assessing a prospective franchise opportunity. Too many times franchisees do not undertake the necessary due diligence prior to buying a franchise. We will be reviewing this proposed bill of rights in more detail. My initial concern is that from a legal standpoint implementation by franchisors may be risky when faced with a franchisee that does not act in good faith. However, the point and goal of the Association is one of "balance between franchisor and franchisee". I am not only a fan of balanced relationships but I also believe that "balance" makes for good business.

We will be reviewing this proposal in more detail.

"The Accidental Franchisor?": When is Franchising Right?

Fri, 29 Jul 2011 08:00:00 EST

In "The Accidental Franchisor?" Angus Loten of the Wall Street Journal discusses the unintentional or "accidental" path that franchisors Cathy Deano and Renee Maloney followed in establishing their "Painting with a Twist" franchise system. The "accidental" nature of Deano and Maloney's franchise venture stems from Deano and Maloney's statements that when they established their business they "knew nothing about franchising" and - by implication - did not intend to franchise their business. So, after establishing four successful business locations, what prompted the establishment of a franchise system? According to Deano, demand from "enthusiastic clients who wanted to buy into the concept and host their own classes." In addition to client demand, after establishing four of their own stores, it appears that future growth required Deano and Maloney to adopt a new business model for expansion. Franchising was the model they adopted and, it appears, was the right choice.

Interested in Expanding Your Business through Franchising? We recommend reading:
"The Franchsie Formula: A Guide for Franchising Your Business in the New Economy"

To be certain, "franchising a business" is not something that happens by "accident" but, rather, is often the product of a successful business owner seeking out a structure or system to facilitate regional or national growth. In most instances "franchising" is a natural progression for successful entrepreneurs. As a "business model" some of the primary benefits of "franchising" include:

Expansion. The franchising business model is premised on unit growth and business expansion. Many entrepreneurs - like Deano and Maloney - after establishing a successful business with strong demand, eventually, must confront growth. That is, to expand beyond one, two, four or ten units how do you raise the required capital and managerial staffing to expand regionally and nationally. Franchising addresses these "expansion road blocks,"

Capital. Expansion requires capital. Franchising serves as a source of capital wherein franchisees finance and capitalize the expansion of your brand, and

Managerial Talent. Qualified franchisees serve as a ready source of dedicated and, presumably, well trained, managers and unit operators.

There are many aspects of franchising that make it a compelling business model. Franchising is not for everyone (a topic that I discuss and write about often) but for the right business and entrepreneur the benefits are compelling. In a future post I will focus on some of the negative factors or attributes that must be carefully examined before franchising.

So, when it comes to "franchising" there are never accidents - just hardworking entrepreneurs looking to expand their successful business and brands.

Continue reading about How to Franchise Your Business

Low Franchise Fee: Good Investment?

Thu, 28 Jul 2011 08:00:00 EST

When purchasing a franchise a "low franchise fee" (although relevant) does not necessarily equate to a good investment. Nevertheless evaluating your budget and overall investment is a basic and critical task that all prospective franchisees must evaluate. The amount of the upfront franchise fee is one of the cost factors to evaluate. Recently, Franchise Business Review released their annual review of franchises with an initial investment level of under $50,000. Below are some of the franchises that Franchise Business Review identified:

Heaven's Best Carpet Cleaning
Cash Required: $15,000
Total Investment: $24,900 - $60,000

FocalPoint Coaching
Cash Required: $49,950
Total Investment: $49,950 - $60,000

MaidPro
Cash Required: $20,000
Total Investment: $18,709 - $103,959

JumpBunch
Cash Required: $50,000
Total Investment: $34,700 - $79,400

Cruise Planners
Cash Required: $25,000
Total Investment: $30,000 - $65,000

5-Star Painting
Cash Required: $25,000
Total Investment: $30,000 - $65,000

Showhomes Home Staging
Cash Required: $10,000
Total Investment: $43,000 - $64,000

Tax Centers of America
Cash Required: $25,000
Total Investment: $15,000 - $45,000

Oxi Fresh Carpet Cleaning
Cash Required: $45,000
Total Initial Investment: $34,630 - $57,010

Snap-On Tools
Cash Required: $17,925 - $80,071
Total Investment: $17,925 - $289,080

Franchise fees represent only one factor to evaluate when answering the question: "What is the right franchise opportunity and investment for me?". To understand more about franchise fees, I recommend reading:

For additional information about investing in purchasing a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by Charles N. Internicola. For information about our Franchisee Protection Programs contact our law office at 1-800-976-4904.

Hotel Franchise Agreements: 5 Factors to Consider when Terminating Your Franchise Agreement

Thu, 28 Jul 2011 08:00:00 EST

In a recent article on HotelNewsNow.com - "5 Ways to Leave your Franchise Agreement" - Shawn A. Turner identifies issues that hotel franchisees should consider when terminating a franchise agreement.

Like all franchisees the starting point for evaluating "termination issues" must start with your franchise agreement. This analysis should be followed by an assessment of the tangible assets and property rights associated with your hotel. In his article Mr. Turner provides some practical factors to consider, including:

Looking closely at the franchise agreement - It is advisable to have a franchise lawyer review your franchise agreement prior to signing it to make sure you are fully aware of the final terms and conditions. If already involved in the franchise agreement and you are looking for a way out of your franchise agreement it is important to contact a franchise lawyer to review the terms and conditions listed.
Know your window of opportunity - Franchise agreements often vary in length of time. Some have two-year or five-year windows while other agreements are long-term. A franchisee should keep in mind that a long-term franchise agreement can cause a franchisee and franchisor to be with each other longer than what they want while on the other hand a shorter-term franchise agreement goes both ways allowing the franchisee or the franchisor to initiate getting out of the franchise relationship.
Be prepared to pay - When terminating a franchise agreement prior to the agreement term being completed franchisees may be asked by their franchisor to pay liquidated damages. Hotel franchisees should be conscious of what payments will be due for liquidated damages if they signed a liquidated damages agreement when they bought the franchise.
Negotiate - While it may not work in all instances another thing a hotel franchisee leaving a franchise agreement may want to consider is negotiating with the franchisor. The outcome of this varies widely and the franchisee may not get anything they ask for but it doesn't hurt to try.
Be wary of customized FF&E - Some franchisors are now setting up exclusive agreements with furniture, fixtures and equipment suppliers (FF&E). These agreements may complicate a franchisees exit from a franchise agreement and may result in significant costs if considering going from one hotel franchise brand to another. The franchisee may possibly required to replace the hotel furniture, fixtures and equipment to the new brand's required FF&E. This is something that should be kept in mind when transferring from one hotel brand to another and not so much for a franchisee considering leaving the hotel franchise business completely.

Mr. Turner's points are valid and raise factors that franchisers must consider. Your franchise agreement is critical and prior to triggering any termination or default it is critical to plan and structure your "legal exit" from the franchise system. Also "furniture, fixtures and equipment" (branded and unbranded) consistently raise potential costs associated with a franchise transfer. Your obligations as to these assets must be carefully scrutinized.

For information about purchasing a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by Charles N. Internicola. For information on our Franchisee Protection Programs please contact our office at 1-800-976-4904.

For Some Franchises Growth Comes from Current Franchisees

Wed, 29 Jun 2011 08:00:00 EST

When it comes to the development and growth of a franchise system - that is, dependable growth through qualified franchisees - too often franchisors ignore their existing franchisees. For franchisors the value of dependable and experienced "existing" franchisees is something that should not be overlooked. The economics of scale and efficiencies obtained through multi-unit franchise sales are well documented and, in many instances, "just make sense".

Recognizing the significance of this expansion strategy, a recent article, Popeye's reports on its expansion strategy focused on unit growth through multi-unit sales. Popeye's claims that they have redirected their franchise sales toward current franchisees. According to the article, the Popeye's franchise chain yielded a 5.1 percent sales increase in 2010 which was their fourth year in a row for positive annual sales increase and hope to yield similar results for 2011.

While Popeye's strategy sounds promising the article does not discuss franchisee satisfaction and the impact on overall profitability for both Popeye's and its multi-unit franchisees. Certainly, information that I would be interested in. For franchisors sustainable and controlled growth is critical and multi-unit sales is one "growth tool" that must be evaluated.

For additional information about franchising your business or improving your franchise practices request a complimentary copy of "The Franchise Formula: A Guide to Franchising a Business in the New Economy" by Charles N. Internicola, Esq. or contact our office at 1-800-976-4904.

Starting a Franchise: Can your Business Systems be Duplicated?

Wed, 29 Jun 2011 08:00:00 EST

Many times prospective franchisors equate having a "successful" business as proof that he or she should enter the world of franchising. However, establishing a franchise requires more than a successful business. For starters you need a business that has established and maintained proven business "systems" and "procedures". Think about your "business systems" and question yourself as to how documented and established these systems are. Also, are these systems in your head or are they written down. If they are not written down then do you really know what they are?

Addressing this topic in a recent article, "Carbon Copy: Turning your Business into a Franchise", Tony Eames identifies some important "checklist" factors that prospective franchisors should definitely be evaluating. Those factors, include:

Is your business REALLY successful - and different?
Could that success be replicated?
Do you have a stand-out brand?
Do you have detailed, tested business systems?
Can your business continue to adapt, evolve and grow?
Have you got the necessary skills and attitudes?
Can you create a realistic marketing plan?
As a franchisor can you keep adding value to the businesses?
Will you have adequate financial reserves?
Do you have access to specialist franchising expertise?

When answering these questions "don't just answer yes". Rather give some detailed thought and put in writing why your business is different and how your success may be replicated when discussing "replication" that have been clearly established, tested and proven. Most importantly these systems must be transferable and taught to franchisees.

For additional information about franchising your business request a complimentary copy of "The Franchise Formula: A Guide to Franchising your Business in the New Economy" by Charles N. Internicola, Esq. or to schedule an appointment to speak with Mr. Internicola contact our franchise law office (nationwide representation) at 1-800-976-4904.

Military Member to Franchisee: What is the Deal with "Military Friendly Franchises"?

Tue, 28 Jun 2011 08:00:00 EST

In terms of franchise trends and topics of discussion, there has been significant interest by franchisors in establishing programs for the sale of franchises to former military members. Is this a form of patriotism or a sales opportunity? I believe the answer depends on the specific franchisor and, on the surface, not easily determinable.

From my perspective, without question, the men and women of the United State armed forces account for and represent - truly - some of the most intelligent, diligent and hard working individuals in this country and the world. These individuals are an exceptional national asset and for this reason, many, would be prime candidates to serve as America's future business leaders. So, franchise sales to military members does make sense and may serve as a "win-win" situation. However, these brave men and women must nevertheless be aware that irrespective of a franchisor's good intentions (which I believe many have) buying a franchise is not right for everyone and there is tremendous variation as to the quality of franchise opportunities. So even if you are offered a military discount, the discount itself should not be a determining factor in selecting a franchise. Always conduct a thorough evaluation of a franchise opportunity.

Moving past my words of caution recently G.I. Jobs, an online resource which provides current and former members of the military with information on education, employment and franchise opportunities, released a list with their top picks for military friendly franchises. Franchises on the "Military Friendly Franchises 2011 List" were surveyed by G.I. Jobs and determined to have (a) a success in recruiting military and veterans, (b) a participation in non-financial efforts to recruit and retain military veterans (such as participating in programs like VetFran) and (c) a participation in financial efforts to recruit and retain military veterans (such as offering a discount to military veterans). Franchises that ranked high on the "Military Friendly Franchise 2011 List" are broken up by franchise type and listed below. Please keep in mind this list was based off of surveys given to franchisors about their own franchise system and does not necessarily reflect the views of veteran franchisees associated with the franchises. The list was reported by G.I. Jobs.

Automotive
Advanced Maintenance
Auto Appraisal Network, Inc
Color-Glo International
Creative Colors International, Inc.
Kwicksilver Wheel Repair
Lentz USA Service Centers
Line-X Corp.
Maaco
Matco Tools
Meineke Car Care Centers
Moran Industries
Novus Franchising Inc.
Onsight Solutions
Rent-N-Roll Custom Wheels & Tires
Snap-on Tools Company LLC
Ziebart International Corporation

Baked Goods
Dunkin' Donuts
Nestle Toll House Café By Chip

Beauty-Related
Fantastic Sams Hair Salons
Sports Clips
V's Barbershop

Building & Construction
ABC Seamless
Bin There Dump That
Closet & Storage Concepts
Concrete Raising of America, Inc.
G.J. Gardner Homes
Granite Transformations
Kitchen Tune-Up
Paul Davis Restoration, Inc.
Shelfgenie
Tiffany Marble Molds, Inc.

Business-Related
ACFN Franchised, Inc.
AdviCoach
AIM Mail Centers
Bookkeeping Express
Business Partner Franchising, LLC
Cleannet USA
Coffee News
Cybertary
Empire Business Brokers
ERC Franchising, LLC
Fastsigns Int'l LLC
Focalpoint Business Coaching International
Geese Police
Growth Coach, The
HIrePatriots.com
Mr. Appliance Corporation
Padgett Business Services
TheHomeMag Franchising
Us Laws
Valpak

Child-Related
Compuchild
KidzArt and Art Innovators
Kinderdance International Inc.
Rainbow Station
Righttime Kids
Royal Keys

Computer Products and Services
Friendly Computers

Decorating & Home Design
Budget Blinds
Décor & You
Decorating Den Interiors
Fresh Coat Panters
Get A Grip Franchising LLC
Miracle Method Surface Refinishing
Tailored Living

Education-Related
Mathnasium Learning Centers
The Entrepreneur's Source
Tutor Doctor

Fast Food Restaurants
Checkers Drive-In Restaurants, Inc.
Cousins Subs
Lemon Heaven Beverages
Little Caesar Enterprises, Inc.
Marco's Pizza
Pollo Campero
Shakey's Pizza Restaurant
Staggering Ox
Steak Escape
Teriyaki Experience

Frozen Desserts
Haagen-Dazs Shoppe Co.
Happy & Healthy Products
Paciugo Franchising, LP
Red Mango Franchising Company
Tasti D-Lite LLC

Health & Fitness
Accessible Home Health Care
Anytime Fitness
BrightStar Care
CKO Kickboxing
Comfort Keepers
Elements Fitness
Fitgolf Enterprises, d/b/a Body Balance For Performance
Foot Solutions
Fuerza Pilates
Gold's Gym
Good Feet
Griswold Special Care
GymMatrix
Home Helpers & Direct Link
Interim Healthcare
Planet Beach Franchising Corp.
Relax The Back
Tan Republic
Visiting Angels

Lodging
Value Place

Maintenance Services
Aire Serve Heating & Air Conditioning
AmeriSpec Inspection Services
BLACK DAWG SEALCOAT
Blue Dawg Power Wash
Coverall Health-Based Cleaning system
Ductz Air Duct Cleaning
Duraclean International, Inc.
Fish Window Cleaning Services
Furniture Medic, Inc.
Grout Doctor Global Franchise Corp.
HOODZ
Jet-Black
Lawn Doctor, Inc.
Maid Brigade
Millicare Commercial Carpet Care
Nutri-Lawn, Ecology-Friendly Lawn Care
Pestmaster Services, Inc.
Service Master Clean
Sparkle Wash Pressure Washing
Spring-Green lawn Care Corp.
Weed Man
West Sanitation Services, Inc.
Window Gang
Yellow Dawg Striping

Party-Related Goods/Services
Crystal Rose Franchise
Gamin' Ride Franchise Systems, Inc.

Personnel Services
Assisting Hands Home Care
Link Staffing Services

Pet-Related Products/Services
Aussie Pet Mobile
Bark Busters - Home Dog Training
G'day! Pet Care
PawSpa resort
Preppy Pet
Snaggle Foot Dog Walks & Pet Care
The Pooch Mobile

Photographic Products/Services
TSS Photography

Publications
Hometowntimes.com

Real Estate
Area Pro Realty
Hometeam Inspection Services, The
Homevestors of America
Pillar To Post Professional Home Inspection
RE/MAX, LLC
United Country Real Estate

Restaurants (Sit-Down)
Big Boy Restaurants International LLC
Burger Hut Inc.
Lenny's Sub Shop
Spicy Pickle
The Melting Pot Restaurants

Retail Food
Between Rounds Bakery Sandwich Café & Catering
Breadsmith
Coffee Beanery
Figaro's Italian Pizza
Godfather's Pizza, Inc.
Maui Wowi Hawaiin Coffees and Smoothies
Papa Murphy's Take ‘n' Bake Pizza
The Original Basket Boutique

Retail Stores
Batteries Plus
Discount Retail Store Services, LLC
Hobbytown USA
More Space Place, Inc.
PostalAnnex+
The Great Frame Up
Verlo Mattress Factory Stores, LLC
Woodcraft Franchise LLC

Security-Related
Pop-A-Lock

Services-General
1-800-DryClean
1-800-Water Damage
A All Animal Control
American Leak Detection
Border Magic, LLC
Boulder Designs, LLC
CarePatrol Franchise Systems, LLC
Caring Transitions
Certapro Painters
Clean A Can
Enviro-Tech Pest Services
Glass Doctor
InXpress
Jan-Pro Cleaning Systems
Liberty Tax Services
Molly Maid
Mr. handyman International
Mr. Rooter
Pestmaster Franchise Network, Inc.
Pi Franchise Group
Pressed 4 Time
Pronto Auto Insurance
ProTect Painters
Rainbow International Restoration and Cleaning
Roni Deutch Tax Center
Safe Ship
Six Franchise Group Inc. dba Move It Now
The Dwyer Group
The Foundry System, LLC
The Maids International
Touching Hearts At Home
Two Men And A Truck
We Do Lines

Sports & Recreation
American Poolplayers Association
i9 Sports Corporation
The National Martial Arts League Franchise, LLC

Travel
Cruise Planners/American Express
CruiseOne Inc.
Golfahoy Golf Travel Ambassador Franchise/License

Video
Flicko's Video Services

Online Resources for Buying a Franchise: As Reported by the Wall Street Journal

Tue, 28 Jun 2011 08:00:00 EST

In a recent web watch post on the Wall Street Journal Online readers (including franchisees and franchisors) are provided with online resources that may be useful when considering purchasing a franchise.

The list includes the following sites that are definitely useful for prospective franchisees:

Federal Trade Commission's Franchise Rule - The FTC's Franchise Rule is a 144-page compliance guide which contains information to ensure franchisors are meeting the FTC's requirements for them. This online web document provides information on issues such as franchisee-franchisor relationships, section-by-section information required in disclosure documents, financial disclosure requirements, and much more;
Federal Trade Commission's Bureau of Consumer Protection Guide - This online resource was created for prospective franchisees to learn about topics such as the expenses of buying a franchise, what the initial franchise investment often includes, royalty fees, advertising fees and much more information about what to expect as a franchisee;
Franchise International - Franchise Development Services Ltd. created the Franchise International site to provide prospective franchisees with news and trends about international franchising.

These sites are great but keep in mind that they are just "reference tools" and just some of the many resources that prospective franchisees should be evaluating. Before investing in a franchise (or any business) "due diligence" is critical. Ask questions, consult with the right professionals and understand that purchasing a franchise will impact every aspect of your business and personal life.

For additional information about buying a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" or to schedule an appointment call 1-800-976-4904.

Also consider these additional franchisee resources:
The New York Franchise Law Blog
Franchise Law Solution's Section for Franchisees

Small but Fast: Franchise Growth That Is

Tue, 28 Jun 2011 08:00:00 EST

In "7 Small Franchises that are Growing Fast", The Street, identifies some interesting "small" franchisors claimed to be "growing fast". This list includes:

(1) Medi-Weightloss Clinics - A physician-supervised weight-loss program - Approximate Initial Investment: $350,000

(2) We Do Lines - A commercial parking lot striping company - Approximate Initial Investment: $77,000 - $130,000

(3) Elevation Burger - A quick-service burger joint offering organic burgers in an environmentally-friendly atmosphere - Approximate Initial Investment: $373,500 - $738,500

(4) Dogtopia - A full-service dog day care and spa service - Approximate Initial Investment: $242,900 - $458,300

(5) Fibrenew - A leather, vinyl and plastic restoration business that caters to the aviation, auto, marine, residential and commercial markets - Approximate Initial Investment: $65,000

(6) Firestorm - a natural disaster crisis management consulting business - Approximate Initial Investment: $75,000

(7) Guier Fence - A home-based fencing installation company - Approximate Initial Investment: $55,000 - $128,000

The list is definitely interesting and, personally, I would like to learn more about Fibrenew. However, for franchisors and franchisees alike "fast growth" does not necessarily equate with success. Growth must be controlled and planned. Prospective franchisees must do their due diligence as to whether or not the franchisor has built up the necessary infrastructure and systems to "support" its franchisees and expansion. Also, keep in mind that "fast growth" that comes at the cost of franchisee profitability is never a good thing.

For additional information regarding purchasing a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by Charles N. Internicola, Esq. For information about our Franchisee Protection Services contact our law firm at 1-800-976-4904.

Starting a Franchise: Some Lessons from Five Guys and the Burger Industry

Tue, 28 Jun 2011 08:00:00 EST

The fast food burger industry has proven quite instructive. By all accounts when considering a mature market with well entrenched competitors such as McDonalds and Wendy's, conventional thinking would dictate against new competitors and franchisors entering this market. However - as with many things in life - there are no constants and there is always room for improvement. Enter 5 Guys Burgers (a favorite of mine) and the traditional burger market is once again shaken up with the creation of what appears to be a thought out and well established franchise system.

This leads us to an interesting article about Five Guys Burgers and Fries and In-N-Out Burger by Ira Kalb at bnet.com titled "How to Compete Against the Big Guys".

Some points/questions raised in the article are:

Making sure your product is unique - What competitive edge does your burger and other foods/services offered have over your competitors. A unique product will help your franchise to stand out from the other choices available to consumers.
Satisfy Consumers AND Franchisees - In order for a franchise to experience growth and success both customers and franchisees must be satisfied with the franchise. Without a mixture of both a franchise more than likely will struggle to truly be successful in the long run.
Make sure you have the legal "stuff" intact BEFORE you expand - Trademarks, recipes, logos, any special branding or information about your product or your company needs to be protected. It is also important to make sure your disclosure documents and franchise agreement project the correct information and protect you.

The information is somewhat generic but from my perspective potential franchisors should give some significant thought about how your franchise will "satisfy franchisee" expectations. Satisfied franchisees are critical to franchise system development. What factors do you think are critical to franchisee satisfaction?

For additional information about starting a franchise or expanding an existing franchise request a complimentary copy of "The Revised Franchise Formula: A Guide to Franchising Your Business in the New Economy" by Charles N. Internicola, Esq. For information on our Franchisor Compliance Program contact Charles N. Internicola at 1-800-976-4904.

Former Illinois Franchise Regulator Offers Tips to Help Franchisees Make an Educated Franchise Purchase

Mon, 27 Jun 2011 08:00:00 EST

A recent article posted on Blue MauMau between Don Sniegowiski, reporter and founder of Blue MauMau, and Robert Tingler, former Illinois franchise regulator, offers tips to help franchisees make an educated decision when purchasing a franchise. Mr. Tingler's 23 years of experience in working in the Illinois attorney general's office is extremely relevant and his insight into the pitfalls and perks of franchising, where improvement is needed, and what franchisors and franchisees can do to make buying a franchise a smoother and less risky transaction is definitely worth reading.

When asked questions pertaining to how the franchise purchasing process may be made easier and less risky for franchisees Mr. Tingler offered the following tips:

Always perform extensive due diligence;
Hire the correct professionals for the purchase you are making such as a franchise lawyer, accountant, and in certain circumstances a consultant;
Do not fall into the trap of believing that renting an adviser of any kind is a waste of money because the due diligence questions and answers are "already covered" in the FDD;
Do not rely solely upon the method of receiving advice by glancing at the franchise's FDD and asking a salesperson's answer;
Try to establish a relationship with the franchisor prior to signing any agreements. This will help determine if the franchise is a good fit for you and will provide you with the opportunity to have important questions addressed;
Understand the realization that if a concern is not addressed in the contract the chances of willing a future argument because of assurances allegedly made by a salesperson are virtually nonexistent for the franchisee.

For additional information about buying a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by Charles N. Internicola, Esq. or contact our law office to schedule an appointment by calling 1-800-976-4904.

Avoid Buying the Wrong Sandwich Franchise

Wed, 22 Jun 2011 08:00:00 EST

A recent post on Forbes.com by Deborah Sweeney titled "Sandwich Survivor: 5 Reasons Why Sandwich Franchises Sell and Succeed" suggests that sandwich franchises are continuously "expanding" and "succeeding." However should franchisees view a franchise system's rapid "expansion" as a sign of success? The answer depends on your perspective.

From a franchisee's perspective a growing "franchise system" is definitely an important factor. Systems need to grow and expand to support the continuous development of bran recognition and regional and national programs. There are other benefits to an "expanding" franchise. However, expansion - if too aggressive or not properly supported - may also lead to diminished returns by franchisees. Especially where a franchisor's "expansion" translates into higher franchisee costs for advertising programs and proprietary products. For franchisees the primary measure for success is not measured in terms of "franchise system expansion" but rather individual franchisee unit "profitability."

For additional information about purchasing a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by Charles N. Internicola, Esq. For information on our Franchisee Protection Programs which include an FDD review and other options contact our firm at 1-800-976-4904.

Pretzel Franchise Receives High Satisfaction Rate from Current Franchisees

Thu, 16 Jun 2011 08:00:00 EST

A recent study by the Franchise Research Institute and FranSurvey suggests that a popular soft pretzel franchise is in a "franchisee love affair" according to an article on Blue MauMau. The popular soft pretzel franchise chain they are referring to is Auntie Anne's Pretzels which showed to be one of the most franchisee liked franchises according to a recent survey given to Auntie Anne franchisees. The survey showed close to a 100 percent satisfaction rate and many franchisees who were surveyed expressed that the soft pretzel franchise is committed to a very long term relationship with them.

The franchisees of Auntie Anne's expressed their evaluation of the franchise as follows:

Excellent - 50%
Very Good - 35%
Good - 14%
Bad - 1%

While no franchise will ever be completely free of flaws it should be a high priority for a franchise to have franchisees that are satisfied with both the franchisor and the franchise system. When purchasing a franchise the presence of franchisee satisfaction should be one of many steps that you take in deciding if a franchise is a good investment opportunity.

For additional information about buying a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by Charles N. Internicola. For information on our Franchisee Protection Services which include an FDD review contact our firm at 1-800-976-4904.

Barbecue Franchise Experiences Growth Caused by Multi-Unit Franchisees

Sat, 04 Jun 2011 08:00:00 EST

In a recent article on Yahoo Finance "Dickey's Barbecue Pit" has announced (or at least claims) that it has become America's fastest growing quick-serve barbecue chain. Dickey's Barbecue Restaurant currently has 146 locations open in 33 states and plans to open an additional 70 franchise locations in 2011. The company's annual growth rate over the past 2 years is claimed to have been averaging 35 percent. Dickey's attributes its growth to mult-unit franchise sales claiming that:

"Multi-unit franchise owners witness dramatic results with more immediate gratification. Single-unit owners see success, but they also need more patience".

As a franchise lawyer I am an advocate for multi-unit franchising however franchisors and franchisees need to know that "multi-unit" franchising does not guaranty success. Multi-unit franchising requires a single franchisee to open and operate multiple franchise locations. Economies of scale and efficiency is, no doubt, a benefit of multi-unit franchising, however caution is required. Franchisees must possess sufficient capital and the franchisor must possess the necessary systems and procedures to "profitably" manage growth. Franchise growth must include constant and continuous systems development.

For additional information about purchasing a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by Charles N. Internicola.

Best and Worst Car Repair Franchises: 2011 SBA Franchise Loan Default Rates

Fri, 03 Jun 2011 08:00:00 EST

When it comes to tracking the performance of franchises, the SBA maintains some informative statistics. Listed below are the franchisee default rates reported by the SBA for "auto repair" franchises. The ranked franchises include Lee Myles, AAMCO, MAACO, Jiffy Lube and Eagle Transmission. The failure rate for some of these franchises appear to be quite high. However even where a franchise opportunity is ranked positively, i.e. a low failure rate, caution is nevertheless required as the only "failure rate" that will matter to you is whether or not your "own" franchise opportunity turns out to be a profitable one. When purchasing a franchise due diligence. The default rates are listed below. With regard to "Goodyear Tire" I have no clue as to how they have a 0% failure rate - information must be missing.

For additional information on buying a franchise we recommend you read about our
Nationwide Franchisee Representation
or request a complimentary copy of our book
"An Entrepreneurs Guide to Purchasing a Business or Franchise"

Below is a list of popular car repair franchises listed on the 2011 SBA franchise loan default rate list which are listed from worst default rates to best:

Rank                Franchise Brand                                                       Failure %

42                    All Tune and Lube                                                        51.00%

47                    Lee Myles Automotive Transmissions                             50.00%

48                    Mr. Transmission                                                         50.00%

124                  AAMCO Transmissions                                                  37.00%

196                  Tuffy Muffler Center                                                  27.78%

197                  Eagle Transmission, Inc.                                                27.27%

213                  Speedee Oil Charge & Tune-Up                                      25.93%

214                  MAACO Auto Painting Center                                          25.00%

328                  Midas Muffler Shop                                                      16.00%

388                  Merlin's Muffler                                                           11.54%

402                  Car-X Muffler Shop                                                        10.00%

411                  Jiffy Lube                                                                      10.00%

475                  Kwik Kar Oil & Lube                                                     6.25%

479                  Valvoline Instant Oil Change                                         6.25%

553                  Goodyear Tire                                                               0.00%

For additional information about buying a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" or for more information on our Franchise Purchase Review Packages call 1-800-976-4904 or request additional information by filling out one of our contact forms.

Look Before You Leap Into a New Market for Your Franchise

Fri, 04 Feb 2011 08:00:00 EST

Good research and analysis of a new market for your franchise opportunity is critical if you want to avoid wasting time and resources on an area that won't be receptive to your business. A New Jersey franchise attorney can help you with much of this research with their past client history and knowledge of the franchise process.

When you are looking to expand your franchise market into new territories you should familiarize yourself with the nuances of that area. Regional and cultural issues can often impede certain business types or brands from becoming successful. For instance, many large franchise industries such as fast food have found it to be a long battle to make an impression in many foreign countries that traditionally value home-cooked meals.

Aside from the business success of a type of franchise, you also need to consider the logistics of communicating, running and monitoring the franchise locations. If an area is too remote to easily ship supplies to or receive products from, it may not be an ideal location for your franchise. You also should consider the population's employability. Areas with a low unemployment rate and low education standard may not leave many skilled workers to staff your location.

There are many other considerations unique to your business that you may need to consider if you are seeking to franchise in new markets. It's best to discuss the idea with your New Jersey franchise attorney first to begin researching potential markets. Once you have a plan set, your attorney can help you gather the necessary information to make a well informed decision.

Contacting a New Jersey Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New Jersey franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New Jersey and how he assists entrepreneurs franchise their business nationwide.

Consider Your Franchise's Needs When Looking at New Markets

Thu, 03 Feb 2011 08:00:00 EST

As important as the documentation of your franchise plan is, there are many more tangible factors you need to consider when looking to franchise in new locations. A franchise can't just pop up overnight and be successful anywhere - some franchises do better in certain locations than others.

When seeking to expand outside your local area there are many factors you have to consider for the success of your franchise. Depending on the nature of your business, your franchise locations will have unique needs for your industry that you must make sure can be met by the new area.

Some of the resources and amenities your franchise locations may need to consider include:

availability of qualified workers (employment rates, education, demographics, etc.);
site locations;
ability to receive supplies and/or ship products; and
connectivity to your main branch and other franchisees.

A typical franchise needs 3 main things to operate: employees, product/service, and customers. If you cannot find adequate employees to run the franchise location, cannot ship supplies to or obtain products from the area, or cannot easily communicate and monitor the location, it may not be a good expansion.

Doing your homework and researching a potential market for your franchise is important to avoid hassles and headaches with underperforming areas. Not all franchises are well accepted in all areas, either because of location demographics or logistics. Working with a New Jersey franchise lawyer will help you best evaluate a potential new market for your franchise and determine if it is viable or not.

Contacting a New Jersey Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New Jersey franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New Jersey and how he assists entrepreneurs franchise their business nationwide.

Taco Bell Meat Integrity Questioned in Class Action Lawsuit

Wed, 02 Feb 2011 08:00:00 EST

January 31, 2011 - The Yum! brand is under scrutiny after one of its flagship franchises, Taco Bell, has been named in a class action lawsuit regarding truth in advertising.

The Consumerist reports that the class action lawsuit was filed after the plaintiff alleged that their "seasoned beef" is only 36% meat and the rest is "extenders" such as oats. The class action suit filed by Montgomery, Alabama law firm Beasley Allen does not actually seek any monetary damages beyond attorneys' fees and only requests that Taco Bell puts truth in their advertising by changing the claims on their product contents.

Taco Bell president Greg Creed released a statement on January 26 responding to the lawsuit's allegations. He claims that the beef used in their locations is USDA approved 100% beef, simmered in a proprietary mix of spices, and all ingredients are listed on the website.

As for the commentary on fillers and the percentage of what's really beef in the mix, according to Taco Bell it's 88% beef with the remaining 12% a mix of water for moisture, spices, and oats to "contribute to the quality of our product." The focus of the lawsuit is on that alleged 12%, which the plaintiff claims is much higher.

Taco Bell and its parent company, Yum! Brands, are fighting the lawsuit as it has raised many consumers' questions regarding just what they are consuming when the product description reads "seasoned beef".

This type of issue can be a frustrating blow to a franchisor as it harms the integrity of the brand but also puts the innocent franchisees in a tough position. When franchise names are spotlighted in the media for a lawsuit regarding their products or practices, the franchisees are often harmed in the crossfire. As a franchisor, you should develop a plan of action with your New Jersey franchise lawyer to deal with such issues if they arise in the future of your franchise system.

Contacting a New Jersey Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get New Jersey franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New Jersey and how he assists entrepreneurs franchise their business nationwide.

Franchise Acts in Other States

Sat, 29 Jan 2011 08:00:00 EST

Every franchise in the United States is subject to the Federal Trade Commission's Franchise Rule of 2007. In addition, each individual state and the District of Columbia has the authority to establish additional rules for franchises.

The state rules are known as franchise acts and each state will have its own unique laws and regulations which all franchises must follow. Some states are more lenient than others and may have only a few rules, if any. Others may have a plethora of guidelines and other requirements which can make franchising there more difficult than other states.

When considering multi-state franchising, discuss the matter with your New York franchise lawyer first to determine if it is a good move for your franchise. Some franchises lend themselves better to multi-state franchising than others, so it's important to determine your potential first before making any big decisions.

Your best course of action is to consult with your New York franchise lawyer. Doing so early in the franchise development process can reduce the amount of work you need to do later. However, franchising in other states can be considered at any time, whether you are a start-up franchise or an established franchisor.

If you decide to start franchising in other states, your lawyer can help you obtain the franchise acts for each state and determine the necessary steps to prepare your franchise disclosure document (FDD). Some states will not require any additional work, while others may require changes in your FDD.

Contacting a New York Franchise Lawyer

If you are an entrepreneur interested in franchising your business, there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get the franchise law report from New York franchise lawyer Charles N. Internicola, Esq. to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York, and how he assists entrepreneurs franchise their business nationwide.

Stand Out at Franchise Trade Shows by Keeping Quiet

Sat, 29 Jan 2011 08:00:00 EST

Depending on the size of the franchise trade show you attend you may be competing against hundreds of other franchisors all vying for the attention of the potential franchisees on the floor. High-profile trade shows can draw franchise giants like McDonalds, Starbucks, and other well-known brand names. These companies know how to be the biggest and loudest, so there's no competing there.

Instead of trying to "out-shout" the competition, you should stand out in your own way from the crowd. While most franchisors look at the franchisees that walk past as just another person to hand a free tote bag to, you should focus on the importance of making a personal connection to potential franchisees.

Most franchisees can end up feeling like a piece of meat at franchise trade shows because bullying franchisors know they have money and will do whatever it takes to sign them up. Your approach to courting interested franchisees should be less aggressive and more personable - a welcome relief on the sometimes crowded and hostile trade show floor.

Make your display attractive enough to draw attention but not so over the top as to distract franchisees from speaking to you personally. If you're working with other staff members from your business, make sure you're all well rehearsed when it comes to facts and information on your company. A well-designed booth that promotes personal conversation will make a great impression on serious franchisees.

A franchise trade show can be a hectic environment with all those other companies vying for the same attention. Instead of trying to yell louder than everyone else, focus on individual attention to the interested franchisees. You'll find marketing your franchise at a trade show much less stressful when you put your effort into netting the few serious franchisees rather than the large masses.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Making a Good Impression at Franchise Trade Shows

Fri, 28 Jan 2011 08:00:00 EST

In the business world a first impression can be the deciding factor on whether or not you close a deal. When you are promoting your franchise opportunity at a franchise trade show your first impression is usually a visual one, so you need to make a good impact.

The design of your booth or table space should be attractive but not too cluttered or flashy. Don't be boring enough to blend in with the tablecloth, but also steer clear of obnoxious gimmicks like strobe lights, huge banners, and loud music. Your space should be populated enough to draw attention but also simple enough to invite focus on conversation rather than environmental distractions.

What you offer at your area is also important. Savvy franchisees aren't going to be swayed to invest in your franchise just because you have the coolest or most useful giveaway item. They're going to want more than a tote bag, unless that tote bag is filled with information on your franchise. Pre-gathered marketing packets are a great way to allow franchisees to walk away with the basic information they need, and the contact information to ask you for more.

Above all, make sure you look the part. Management should be dressed appropriately, and if you are bringing an actual employee or two along to help handle questions about your business, have them properly attired in uniform if applicable. This allows franchisees to see your dedication to the brand, as well as give them confidence that they are dealing with a serious business opportunity.

A franchise trade show can be a great opportunity to meet motivated and serious franchisees. Being well prepared to market your franchise opportunity at one of these shows can be a complex endeavor that not every franchisor is suited for. Before committing to a franchise trade show it may be beneficial to discuss the option with a New York franchise lawyer, particularly if you are new to the franchising game.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

The 3 Types of Franchise States

Wed, 26 Jan 2011 08:00:00 EST

Every state is somewhat unique when it comes to their handling of franchises. While all franchises must abide by the Federal Trade Commission's Franchise Rule of 2007, there are even more unique laws and requirements for each state.

Before you start making plans to franchise in another state, you need to consider what type of state it is.

States fall into 3 categories regarding franchise laws:

franchise registration states;
filing states; and
non-registration states.

The registration states require a franchise to register with a state government office and file the franchise disclosure document with that office. The 15 states in this category are: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, North Dakota, New York, Oregon, Rhode Island, South Dakota, Virginia, Washington and Wisconsin.

Filing states do not require registration, but do require filing your franchise disclosure document with a state office. These 9 states are: Connecticut, Florida, Kentucky, Maine, Nebraska, North Carolina, South Carolina, Texas and Utah.

The remaining 26 states and District of Columbia do not require filing or registration of your franchise or franchise disclosure document. However, these states do have other laws governing the operation and establishment of a franchise.

If you are considering developing your franchise in other states, you'll need to learn and understand the state laws and how they may impact your franchise disclosure document (FDD). An experienced New York franchise lawyer can help you with this process and advise which multi-state registration strategy is best for your franchise.

Contacting a New York Franchise Lawyer

If you are an entrepreneur interested in franchising your business, there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get the franchise law report from New York franchise lawyer Charles N. Internicola, Esq. to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York, and how he assists entrepreneurs franchise their business nationwide.

Forbes Top 20 Franchises to Start

Tue, 25 Jan 2011 08:00:00 EST

A recent article by Forbes, "Forbes Top Franchise to Start", evaluates and ranks the top 20 franchises to start based off of initial investment, number of store locations, store survival rates, and hours of training offered. Below are the results offered in the article by Forbes:

#20 - Meineke Car Care Centers
Average initial investment: $262,239
Number of U.S. stores open as of 6/26/10: 858
Closures between 6/28/08 and 6/26/10: 193
Hours of training offered: 173
Average royalty rate: 5% of gross revenue

#19 - Sylvan Learning
Average initial investment: $242,079
Number of U.S. stores open as of 1/30/10: 819
Closures between 1/30/07 and 1/30/10: 161
Hours of training offered: 184
Average royalty rate: 8.5% of gross revenue

#18 - Dunkin' Donuts
Average initial investment: $1,066,750
Number of U.S. stores open as of 1/30/10: 5,459
Closures between 1/30/07 and 1/30/10: 409
Hours of training offered: 270
Average royalty rate: 7.5% of gross sales

#17 - Burger King
Average initial investment: $1,468,250
Number of U.S. stores open as of 6/30/10: 6,351
Closures between 6/30/08 and 6/30/10: 464
Hours of training offered: 414
Average royalty rate: 4.5% of gross sales

#16 - AAMCO Transmissions
Average initial investment: $266,100
Number of U.S. stores open as of 1/30/10: 837
Closures between 1/30/07 and 1/30/10: 161
Hours of training offered: 375
Average royalty rate: 7.5% of gross sales

#15 - Maaco
Average initial investment: $291,326
Number of U.S. stores open as of 6/26/10: 434
Closures between 6/28/08 and 6/26/10: 48
Hours of training offered: 160
Average royalty rate: 9% of gross receipts

#14 - Panera
Average initial investment: $1,513,694
Number of U.S. stores open as of 1/30/10: 754
Closures between 1/30/07 and 1/30/10: 44
Hours of training offered: 928
Average royalty rate: 5% of net sales

#13 - Jiffy Lube International
Average initial investment: $258,500
Number of U.S. stores open as of 1/30/10: 1,980
Closures between 1/30/07 and 1/30/10: 218
Hours of training offered: 136
Average royalty rate: 5% of gross sales

#12 -Papa John's international
Average initial investment: $292,812
Number of U.S. stores open as of 1/30/10: 2,212
Closures between 1/30/07 and 1/30/10: 283
Hours of training offered: 219
Average royalty rate: 5% of net sales

#11 - Liberty Tax Service
Average initial investment: $63,350
Number of U.S. stores open as of 4/30/10: 3,217
Closures between 4/30/08 and 4/30/10: 491
Hours of training offered: 29
Average royalty rate: 14% of gross revenue

#10 - Jimmy John's
Average initial investment: $383,000
Number of U.S. stores open as of 1/1/10: 948
Closures between 1/1/07 and 1/1/10: 18
Hours of training offered: 172
Average royalty rate: 6% of gross sales

#9 - Edible Arrangements International
Average initial investment: $223,057
Number of U.S. stores open as of 1/1/10: 783
Closures between 1/1/07 and 1/1/10: 39
Hours of training offered: 104
Average royalty rate: 5% of gross sales

#8 - Sports Clips
Average initial investment: $215,050
Number of U.S. stores open as of 1/1/10: 650
Closures between 1/1/07 and 1/1/10: 40
Hours of training offered: 153
Average royalty rate: 6% of net sales

#7 - Great Clips
Average initial investment: $155,625
Number of U.S. stores open as of 1/1/10: 2,794
Closures between 1/1/07 and 1/1/10: 307
Hours of training offered: 87
Average royalty rate: 6% of gross sales

#6 - Merry Maids
Average initial investment: $61,500
Number of U.S. stores open as of 1/1/10: 711
Closures between 1/1/07 and 1/1/10: 68
Hours of training offered: 55.25
Average royalty rate: 6% of gross sales

#5 - Papa Murphy's International
Average initial investment: $287,940
Number of U.S. stores open as of 1/1/10: 1,136
Closures between 1/1/07 and 1/1/10: 65
Hours of training offered: 275
Average royalty rate: 5% of gross sales

#4 - McDonald's USA
Average initial investment: $1,471,100
Number of U.S. stores open as of 1/1/10: 12,381
Closures between 1/1/07 and 1/1/10: 468
Hours of training offered: 855
Average royalty rate: 4% of gross sales

#3 - Kumon North America
Average initial investment: $90,894
Number of U.S. stores open as of 1/1/10: 1,293
Closures between 1/1/07 and 1/1/10: 185
Hours of training offered: 415
Average royalty rate: $16-$32 per student per month

#2 - 7-Eleven
Average initial investment: $389,378
Number of U.S. stores open as of 1/1/10: 4,685
Closures between 1/1/07 and 1/1/10: 215
Hours of training offered: 231
Average royalty rate: 49% of gross profit

#1 - Domino's Pizza
Average initial investment: $253,950
Number of U.S. stores open as of 1/1/10: 4,525
Closures between 1/1/07 and 1/1/10: 557
Hours of training offered: 1,308
Average royalty rate: 5.5% of gross sales

Before buying a franchise, it is critical that you engage in an active "due diligence" process. The fact that a franchise is listed a part of the "Top 20" or, quite frankly as the "top" of anything just means that it is popular. "Popularity "does not necessarily equate with "profitability". For additional information about purchasing a franchise request a complimentary copy of "An Entrepreneur's Guide to Purchasing a Business or Franchise" by franchise lawyer Charles N. Internicola.

Communication Means Talking and Listening To Your Franchisees

Sat, 22 Jan 2011 08:00:00 EST

A good communicator not only knows how to talk to people but also how to listen. To be a successful franchisor, you need to develop a good system to keep your individual franchisees informed about the latest franchise news and changes in your franchise program. You also need to listen to their feedback on those issues.

Your franchisees are your link to your customers. A business cannot operate without a good customer base, and to keep your customers happy, you need to know what does and does not work to keep their business. Because your franchisees interact with your customers on a more personal level than you do, they are often the most valuable source of this information.

When a franchisee raises a concern about changes in your franchise program or problems they experience, you need to listen. Chances are they're not the only franchisee that may be feeling this way-they just happen to be the one to bring it to your attention. It can save you headaches later when you listen to a first-time complaint and develop a solution before a widespread issue results.

Asking for franchisee feedback is also helpful when you want to make changes to your franchise program or release new products or services. Just because you think a change is a good idea on the corporate level does not mean it will work well for all your franchisees. Some regions will experience different results than others, making franchisee feedback all the more important when testing new products or services.

Maintaining good communication between your corporate offices and the individual franchisees is one of the best ways to create a good franchisor/franchisee relationship. Your franchisees are the foundation of your franchise program and without knowing what they need to grow and expand, your business as a whole will remain stagnant.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Be Comfortable With Your New York Franchise Attorney

Fri, 21 Jan 2011 08:00:00 EST

While in many cases you can't choose who you work with in a business, as a franchisor you do have the right to choose who you work with as your New York franchise attorney.

When making the decision to hire a New York franchise attorney you should consider the fact that this is a relationship that will last several years. Your need for your attorney does not end once your franchise agreement and Franchise Disclosure Document are drafted. Your attorney may be needed months, even years after your franchise is established.

Some common reasons you may need to contact your New York franchise attorney in the future include:

litigation brought against you by your franchisees;
changes in your documents;
new franchise laws that need to be addressed;
selling your franchise; and
terminating a franchise.

Because of the high probability that you may need to work with your attorney on a regular basis, you need to be comfortable with working with them. It may sound trivial, but if you can't stand someone's demeanor in professional contacts, you'll be less agreeable to work with them. Therefore, you should make sure you're happy with your attorney in both practice and personality before you make a decision.

The importance of hiring a New York franchise attorney is something you should take into consideration when deciding to franchise your business. To give your franchise the best start it can have, find a trustworthy New York franchise attorney to work with you through the initial setup through the life of the franchise.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Keep In Touch with Franchisee Newsletters

Fri, 21 Jan 2011 08:00:00 EST

Because there are so many people associated with the success of a franchise program, it can often be difficult to get news distributed in an efficient and effective manner. Corporate newsletters, whether electronic or physical, are often low-cost, easily developed and a fun way to keep your franchisees informed about the latest news at the head office.

You should consider a monthly newsletter to send to your franchisees to keep them up to date on the latest changes in the franchise program at all levels. Of course, any news from the top level should take precedence as it most likely impacts all of the franchisees beneath the parent company.

Individual reports for regions or even individual stores can be featured when there is news fit to announce to the entire operation. Depending on the size of your franchise program, you may need to do a different newsletter for each region to allow both corporate and local information to be featured appropriately.

Use your newsletter not only as a tool to share the important franchise program information but also as a positive reinforcement for well-performing franchisees. Having a "franchise of the month" spotlight can often encourage healthy competition among franchisees and reward those who exhibit extraordinary progress.

Fostering good communication between your corporate offices and your franchisees isn't just about telling them the latest news. You need to also be open to their concerns and suggestions to create a good franchisor/franchisee relationship. Remember that successful franchisees drive a successful franchise program!

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Midwestern Burger King Franchisee Files Chapter 11

Thu, 20 Jan 2011 08:00:00 EST

January 18, 2011 - Burnsville, MN - One Burger King franchisee is showing the stresses of a lackluster economy and increased franchisor pressure after they filed for Chapter 11 bankruptcy protection on December 4^th.

The South Florida Business Journal reports that Minnesota-based Duke and King Acquisition Corp. filed the notice with the District of Minnesota's U.S. Bankruptcy Court after debts from various lenders totaled more than $15 million. A $33.2 million loan from Bank of America back in November 2006 still carried a balance of $11 million, while private equity firm Kinderhook Industries of New York City is owed about $2.7 million.

The actual Burger King Corp. is owed nearly $2 million by Duke and King, but according to the struggling franchisee the corporation is partially to blame for the bankruptcy. Pressure to sell many menu items for under $1, especially the double cheeseburger, was costing their stores too much money. After franchisee complaints and a case filed against Burger King Corp. in regards to the under $1 requirement, Burger King began changing some rules, but it was too late for Duke and King.

The debtors, especially Bank of America, hope that Duke and King can recover some losses through the closure of underperforming stores. The bankruptcy judge hearing the case allowed Duke and King to continue paying its employees, vendors and expenses in an amount of $7 million. The company has been claimed to be impossible to reorganize and is seeking buyers.

Parent company Burger King Corp. went private in October 2010 after it was purchased by about $4 billion by a 3G Capital affiliate. Following the purchase, more than 400 employees were laid off in a restructuring strategy. Burger King Corp. declined to comment on the Duke and King bankruptcy and only offered the statement that it buys time for them to "implement a business solution for their restaurants."

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Franchising Documentary Damages Cold Stone Creamery Franchises

Mon, 17 Jan 2011 08:00:00 EST

January 17, 2011 - CNBC cable network may face legal action over a documentary it produced on the untold stories of franchising. One of its featured franchises, Cold Stone Creamery, felt it was inaccurately represented because the documentary focused on a single incident.

The New York Post reports that the ice cream company felt they were misrepresented when CNBC chose to focus the story of their franchise operations on one sour case involving former Florida franchisee Cecil Rolle. Rolle had previously filed a lawsuit against Cold Stone Creamery and lost.

Some of Rolle's less-than-positive comments on the franchise world involved him mentioning he had to talk 5 franchisees out of committing suicide. Cold Stone Creamery was given a chance to participate in the program but declined.

Aside from Rolle's comments, the CNBC documentary also portrayed Cold Stone Creamery as a ruthless firm that charged franchisees hidden expenses, relied on kickbacks from its vendors, and required franchisees to purchase equipment from specific companies also controlled by Cold Stone.

After the initial airing, Cold Stone Creamery contacted CNBC regarding their issues with the documentary. CNBC has requested an on-camera interview to allow Cold Stone Creamery to give their angle on the story, but so far the ice cream franchise has yet to respond. Meanwhile, the documentary was first edited and then recently pulled from rotation.

As a franchisor, protecting the reputation of your franchise is important to the continued growth and success of your business. When you find your franchise is being threatened by hostile franchisees or bad press you may need the help of a New York franchise attorney to set things straight. An experienced attorney can help you handle franchise litigation and mediate any problems that may arise between you and your franchisees.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Your First Consultation with a New York Franchise Attorney

Mon, 17 Jan 2011 08:00:00 EST

You wouldn't go to just any doctor without doing a little research on their history, such as asking for patient testimonials and making sure they took your health insurance - so why should you hire just any New York franchise attorney?

Your attorney is a critical part in the success of your franchise program as they can help you catch critical flaws in your franchise agreement or mistakes in your Franchise Disclosure Document before they become problems. Franchisors who have the help of a New York franchise attorney when establishing their franchise program often do so with less trouble and more success than those who go about it alone.

When you are searching for an experienced New York franchise attorney you should take advantage of the free consultations many attorneys offer to new clients. During the consultation you should ask all the questions you have regarding how they handle franchise opportunities such as yours.

Ask for past client references similar to your business and also how long they have been in the franchise law business. The more experience and past client success stories an attorney has the more established they are. You want a well-seasoned attorney who knows the nuances of franchise and business law so they will be prepared for any type of legal action that may arise later on in your franchise history.

Experience and past client relations are important credentials for your New York franchise attorney, but they aren't everything. You should understand the importance of hiring a New York franchise attorney and the impact it can have on your franchise program.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Consider How Changes to Your Franchise System Will Affect Your Franchisees

Sun, 16 Jan 2011 08:00:00 EST

As a franchisor you are able to make adjustments to your franchise system as necessary to maximize your success potential. While you are identifying potential areas of change in your franchise system you should also be including input from your franchisees as well.

Remember that any top-level changes you make to your franchise system will be felt the most at the level of your franchisees. New products, changes in governing policies, and new requirements for financial reporting can all have a serious impact on the individual franchisees that make up your entire franchise family.

Keeping this in mind, in many situations when you are considering areas of your franchise system to change you should begin by assessing the current situation with your franchisees. You may find that making changes could cause new stresses at the operational level, potentially decreasing success.

You may also be unaware that changes need to be made to your franchise system unless you take the time to listen and respond to franchisee feedback. Never turn a blind eye to an issue one of your franchisees brings up, as it may not be an isolated incident. Good communication between you and all franchisees is key to identifying common issues and finding a resolution to benefit all involved.

Many franchisor strategies that lead to success involve clear communication between you and your franchisees. Before you are going to make changes to your franchise strategy you should not only consult with your New York franchise lawyer, but also your franchisees as well.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including how to put together a solid FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Listen Up! (To Your Franchisees, That Is)

Sat, 15 Jan 2011 08:00:00 EST

Listening could be one of the best things you can do to help grow and enhance your franchise system. The success or failure of a franchise system is largely dependent on how successful your individual franchisees are in their own locations. Additionally, your franchisees' success is dependent not only on their own skills but also on the support you provide.

To provide the best franchisee support you need to take the time to listen and evaluate the needs at the franchise level. If you are looking to offer a new product, you need to first consult with your franchisees to see if the demand for this new product will outweigh the costs to implement it.

Likewise, if there are complaints about existing products or services you need to address those as well. Your franchisees know best when it comes to the direct opinions and needs of your clients, since they are on the front lines, so to speak. When you see a franchise such as McDonalds enhance an existing product, such as their improvement to their coffee offerings with the McCafe line, this comes after much testing and analysis from their franchisees.

Your franchisees are your eyes and ears when it comes to the satisfaction of your customers. Maintaining open communication with your franchisees can not only alert you to consumer needs and desires, but also allow your franchisees to be involved in the changes to your franchise system. By involving their input in the evolution of your franchise system you can continue to make positive improvements and generate a more substantial franchise operation.

There are many franchisor strategies that include listening to your franchisees as a main focus for your success. No one knows your customers better than the franchisees that directly serve them on a daily basis. Their opinions and input are among the best sources of research and analysis you can have to further develop your franchise system.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Your Next Franchisee May Already Be a Customer

Fri, 14 Jan 2011 08:00:00 EST

One of the qualities you should seek in a new franchisee is a good understanding and enthusiasm for your business. Existing customers already believe in and support your business, and in many cases can be ideal candidates to become new franchisees.

Your franchise expansion will benefit more from a franchisee who has experience and dedication to your business over a franchisee who is merely looking for any business opportunity. Loyal customers are familiar with your business ideals and standards and are usually more apt to follow those standards in their own franchise locations.

As you begin developing your franchise systems with your New York franchise lawyer you should start evaluating your clientele at your existing location. Speak to your staff that interacts with customers and clients on a daily basis. They may be able to point out those who would potentially make great franchisees.

For a franchise to become successful you'll need to begin each franchise with a capable and dedicated franchisee at the helm. Long-time customers will have been around to see your business grow and evolve to the current day, giving them a better understanding of how a new franchise would also develop under your brand.

As you begin reaching out to potential new franchisees you should first have all of your terms and the structure of your franchise outlined and ready to go. Having a well prepared plan for establishing new franchises is critical to offering those opportunities to trusted individuals such as loyal customers.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

"Must Use" Online Resources When Buying a Business or Franchise

Thu, 13 Jan 2011 08:00:00 EST

Bank of America's Business Online Community Team names Charles N. Internicola's New York Franchise Law Blog among the top 11 "must use" online resources for buying a business or franchise. Additionally, the Bank of America Business Community Team had the following to say about the New York Franchise Law Blog:

"Written by franchise attorney Charles Internicola, the New York Franchise Law Blog digs into the deeper legal issues surrounding franchises and franchisee/franchisor disputes, many of which are applicable far beyond the local New York area. Internicola's analysis is much more detailed than your typical franchise blog fare, delving into difficult franchise issues like encroachment, promotion and marketing, and intellectual property right of entrepreneurs, to name a few".

Noble Roman's Inc. Wins One Lawsuit, Starts Another

Thu, 13 Jan 2011 08:00:00 EST

January 3, 2011 - The legal battle is only halfway over for Noble Roman's Inc., which manages the chains of Noble Roman's Pizza and Tuscano's Italian Style Subs restaurants.

Pizza Marketplace.com reported on the December 23, 2010, judgment by the Superior Court in Hamilton County, Indiana, which found that Noble Roman's Inc. was not guilty in the allegations of fraud brought about by 10 groups of franchisees. The originating lawsuit began in June 2008 when the franchisees filed complaints against their parent franchise.

The allegations included that Noble Roman's coerced them into purchasing franchises for traditional locations, doing so by misrepresentation and omission of material facts. The December court ruling found in favor of Noble Roman's and these allegations deemed meritless. The plaintiffs were seeking $5.1 million in compensatory and punitive damages.

After the lawsuit concluded Noble Roman's switched their focus to their still ongoing counter-claim, which was filed back during the original lawsuit. Their claim is for damages resulting from contract breeches and seeks $3.6 million plus attorney's fees.

Noble Roman's counter-claim comes after they expressed discontent with the financial and personnel resources they had to allocate during the original lawsuit's duration. The claims against each franchisee involved in the original lawsuit are all pending.

To add to the legal matters on Noble Roman's plate, a separate claim from the first was filed against the corporation under the Indiana Franchise Act. An appeal for summary judgment by Noble Roman's was denied and the case will proceed.

When developing your franchise system and growing to new franchisees it is important to be honest about incentives and demands for your system. An experienced New York franchise lawyer can help you develop and manage contracts and agreements between you and your franchisees and assist you with any legal action that may arise.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Using Social Media to Find New Franchisees

Thu, 13 Jan 2011 08:00:00 EST

Businesses across the globe are learning that social media is fast becoming a major tool for recruitment, marketing and networking. When you are establishing your franchise, you'll need to consider how you will find talented, enthusiastic franchisees to grow your business rapidly.

Social media can be a huge asset for finding franchisees. Depending on the type of franchise opportunity you are offering you may find more success on one platform over another, such as the professionally-geared Linkedin as opposed to the more casual Facebook.

Linkedin is a business-minded social media platform that connects profiles with educational and professional experience. Your profile can link to colleagues from your training and educational backgrounds, as well as co-workers, employers and other professional contacts. This platform is great for announcing new franchise opportunities, as well as keeping your current franchisees up to date with what is going on at the top level of your business.

Facebook is best for making more casual connections as it is a more social platform. Facebook in itself is a great tool for marketing your business as a whole as it provides the most outreach to your current and potential customers. Even with its more relaxed atmosphere, Facebook may lead you to an enthusiastic customer who could be your next great franchisee!

When reaching out to potential new franchisees you need to be aware of the type of franchisee you want to attract. Once you have a good "profile" developed for your ideal franchisee you can determine the best places to find that type of person. Without good franchisees your franchise cannot grow, and a New York franchise lawyer can help you with the other aspects of franchise development to ensure a smooth expansion process.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including how to establish the terms of your Franchise Disclosure Document (FDD). For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Successful Franchises Listen to Customer Demand

Wed, 12 Jan 2011 08:00:00 EST

January 10, 2011 - Augusta, GA - One of the most famous franchise businesses, McDonald's, knows the recipe for success when it comes to managing their franchise locations.

The Wall Street Journal reported the story of franchisees Dee and Christine Crawford who operate 5 McDonald's locations in the Georgia and South Carolina areas. They face a constant struggle to evaluate customer demand as the main McDonald's Corporation releases new products and location amenities.

With the economic decline and shifting views on fast food, chains such as McDonald's have had to seriously evaluate their customers' needs and desires in order to continue to turn a profit. New healthy options, higher-end items, and facility enhancements have helped McDonald's remain profitable during the recession, but franchisees have struggled to keep up with those new programs.

The Crawfords have found failure and success with many of their parent company's new offerings. Older locations have expanded to the 2-lane drive-through design allowing for more traffic and less wait time. On the flip-side, this has also lead to an increase in staffing, with as many as 18 active employees during peak hours.

New menu items have also proven to be a risky addition for many locations to attempt. The "Snack Wraps" created a new food assembly method which proved difficult for employee training. Some locations opted not to carry them, while others creatively held a wrap-making challenge for staff to provide a training incentive

To ensure the success of the McDonald's franchise operations, the corporation has acknowledged the balance that must be maintained between meeting customer desires and keeping locations profitable. In some locations 24-hour stores have flourished while others flopped - all due to the demographics of the location.

When your business is considering franchise locations you must develop a good communication strategy with your franchisees. The local franchisees will be your best connection to your overall customer demand and therefore allow you to tailor your product offerings and location amenities to what is most desired. Allowing flexibility between locations is critical to allowing each franchisee to do what is best for local success.

Contacting a New York Franchise Lawyer

If you are an entrepreneur interested in franchising your business, there is a lot you need to know. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Finding a Buyer for Your Franchise

Sun, 09 Jan 2011 08:00:00 EST

If you plan to sell a franchise in New York, there are several ways that you can find a potential buyer for your franchise.

The first thing to do when you decide to sell a franchise is notify the franchisor. Besides the legal implications involved, a franchisor may know of a potential investor who has expressed interest in your particular area.

If the franchisor does not know a buyer, then you may choose to hire a business broker to find a potential buyer for your franchise. You can get recommendations from friends or search online for national broker networks with experience in franchise sales. If you do sell your franchise through a business broker, you may be required to pay a minimum transaction fee of $10,000 or more, as well as a commission, which will be a percentage of the total transaction.

On the other hand, you may attempt to sell your franchise in New York on your own. To do so, you may list your franchise on popular Internet sites that attract a lot of businesses and investors. It's important to know that these sites will also charge fees, so you may want to first get advice from your New York franchise lawyer or another trusted source concerning reputable websites and broker firms.

Finally, to sell a franchise in New York, you'll want a New York franchise lawyer to help you through the entire process. An experienced attorney can advise you on the sale of your franchise and can represent your legal interests.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Notifying the Franchisor of Your Plan to Sell a Franchise

Fri, 07 Jan 2011 08:00:00 EST

If you plan to sell a franchise in New York, one of the first things you'll need to do is to notify the franchisor. This is because franchisors maintain contractual rights regarding franchise sales.

When you sell a franchise, these franchisor rights will generally include:

approving the buyer;
approving the transaction; and
exercising the right of first refusal.

Furthermore, a franchisor may have established an organized resale program within their franchise system, in which case you will have to follow the rules that have been established in the program. A franchisor may also know of an investor who has shown interest in your market area.

When it comes to selling a franchise in New York, most franchisors will keep their distance from the process of selling the franchise except for any areas that require their involvement. This is because participation by the franchisor may be seen as interference and a franchisor may face legal recourse for interference with the sale of a franchise.

If you do plan to sell a franchise in New York, you should get the help of an experienced franchise attorney in New York. An attorney may advise you on the process of selling a franchise in New York, such as the information that you must provide a potential franchise buyer.

Contacting a Franchise Attorney in New York

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Terms of Build Out in a Commercial Lease

Thu, 06 Jan 2011 08:00:00 EST

When you sign a commercial lease for your franchise in New York, the lease should specify what must be done to build out the business property. Not only should these specifications include what must be done to the property, but who will be responsible for doing so. This will include a statement of who will perform the construction, and who will control the performance.

Furthermore, a commercial lease for your franchise in New York should specify who will pay for the construction and how the money will be paid. If the landlord is the one who will build out the space, the lease should have controls built in, so that you can make sure the build out is done properly and on schedule. This should permit you certain recourse if the work is unacceptable.

A commercial lease should also specify who will be responsible for maintenance of the property, such as plumbing, electricity, and utility lines. This may be the responsibility of the landlord or the tenant who assumes the lease.

If you need to sign a commercial lease for your franchise in New York, you should have a New York franchise lawyer review the lease agreement. This is particularly true if you are going through your franchisor when signing a lease. You'll want to be certain that you are taking steps to avoid any legal snafus or potential franchise disputes that could happen otherwise.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Seeking Legal Help Before Signing a Lease for Your New Franchise

Thu, 06 Jan 2011 08:00:00 EST

When signing a commercial lease for your franchise in New York-whether directly with a private leasing agent or through your franchisor-it is a good idea to get the help of a New York franchise lawyer.

An experienced New York franchise lawyer may be able to help you with some of the common issues involved in commercial leasing, including:

the drafting of new commercial lease agreements;
reviewing existing commercial leases;
negotiating the terms and conditions of a lease agreement; and
guidance about handling payment of commercial property taxes.

When reviewing a commercial lease, a New York franchise lawyer may explain the language that defines the rights and obligations of all parties involved, which will help to avoid future disputes. If a dispute does arise, a New York franchise lawyer may come up with legal solutions to a leasing disagreement, particularly if that disagreement is directly with your franchisor or has led to a franchise disagreement.

Listed below are some of the key issues included in a commercial lease:

financial obligation and liability;
rights to assign the lease;
repairs and alterations to the commercial property;
termination of leasing rights; and
any future escalation of rent.

You can learn more about how to prepare for the important step of signing a lease for your franchise by visiting our article library.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

New York Franchise Law Blog Named in the Top 50 Franchise Blogs

Tue, 04 Jan 2011 08:00:00 EST

Charles Internicola’s New York Franchise Law Blog Named one of the “Top 50 Franchise Blogs”.

The New York Franchise Law Blog, published by franchise lawyer Charles N. Internicola has been named as one of the “Top 50 Franchise Blogs”.

Franchise Advertisement Laws in Maryland

Tue, 04 Jan 2011 08:00:00 EST

Advertising and promoting your franchise system to prospective franchisees - for the purpose of selling franchises - is an important task for all franchisors. However, whenever advertising franchise sales it is critical that you evaluate and comply with State specific advertising rules. Many states maintain laws that, among other things, require franchisors to register/file their advertising materials prior to publication.

In the state of Maryland franchisors must submit two copies of all advertising materials and publications to be used for the purpose of offering and/or selling a franchise in the State of Maryland. For both start-up and established franchisors "franchise compliance" is a critical task that should never be overlooked. Registering your advertising materials is only one component of your compliance obligations.

For information on franchising your business and franchise compliance you may request a complimentary copy of "The Franchise Formula: A Guide to Franchising Your Business in the New Economy" written by franchise lawyer Charles N. Internicola.

Virginia FDD Registration: Formatting Requirements

Mon, 03 Jan 2011 08:00:00 EST

Virginia is a franchise registration state. When registering your FDD in the State of Virginia franchisors are required, among other things, to file (for the purpose of obtaining registration) a copy of their current franchise FDD with the State Corporate Commission of Virginia.

Virginia's State Corporate Commission has issued the following formatting requirements for Virginia disclosure documents:

Disclose all required information clearly, legibly, and concisely in a since document using plain English;

The disclosure for each FDD item shall be separately titled and in the required order. Do not repeat the question in the FDD. Respond to each question fully. If the disclosure is not applicable, respond in the negative, but if an answer is required "if applicable," respond only if the requested information applies. Do not qualify a response with a reference to another document unless permitted by the instructions to that Item;

For each Item in the FDD, type the requirement's Arabic number and item title. Exhibits should be identified by a letter of the alphabet;

The disclosure must be in a form that permits each prospective franchisee to store, downloac, print or otherwise maintain the disclosure document for future reference;

Separate documents (for example, a confidential operations manual) must not make representation or impose terms that contradict or are materially different from the disclosure in the FDD;

Use 8-1/2 by 11 inch paper for the FDD and other forms. All documents and disclosures must be readable, using not less than 11-point type;

Franchisors may prepare multistate disclosure documents by including nonpreempted, state-specific information in the text of the FDD or in a Virginia Addendum attached to the FDD. The Virginia Addendum may be included in an exhibit to the FDD. Any amendments to the franchise agreement may be included in the Virginia Addendum or in a separate exhibit immediately following the franchise agreement;

The two copies of the Item 23 receipt pages should be the last two pages of the FDD and should be attached after all exhibits;

Before furnishing a FDD, the franchisor must advise the prospective franchisee of the formats in which the FDD is made available, any prerequisites for obtaining the FDD in a particular format, and any conditions necessary for reviewing the FDD in a particular format; and

Grossly deficient applications may be rejected summarily by the commission as incomplete for filing.

For additional information on franchising, franchise compliance and registering your FDD request a complimentary copy of "The Revised Franchise Formula: A Guide to Franchising Your Business in the New Economy" by franchise attorney Charles N. Internicola, Esq.

Getting Financial Information from a Franchisor

Fri, 31 Dec 2010 08:00:00 EST

As a potential franchisee, you will be provided with specific disclosures in a Franchise Disclosure Document (FDD). This document will include certain financial information about a franchise. You may use this information to make projections about a franchise opportunity, and decide whether to invest in a franchise in New York.

However, the financial information in the FDD may be insufficient. In fact, a franchise's earnings are not required within the FDD. Only about 25% of franchisors provide information about their earning potential. This is because oftentimes, earnings information may reveal some unattractive numbers.

If you want to receive earnings projections when considering this type of investment, you can ask the franchisor to provide an earning claims statement. If you do request an earning claims statement, try to get a statement from a franchise in your projected area. This will give you an idea of how these costs and considerations relate to your geographic area.

If you do receive an earning claims statement from a New York franchisor, you can have the statement reviewed by a New York franchise lawyer. Your New York franchise lawyer can run the numbers you've been given and help you make an informed decision about investing in a franchise.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Reassessing Your Right to Terminate a Franchise

Fri, 31 Dec 2010 08:00:00 EST

When you reassess the terms of your franchise agreement, one condition that you should reconsider is your right to terminate a franchise. In a standard franchise agreement, there should be several breaches that, if committed, will allow you to terminate an agreement. For instance, if a franchisee fails to maintain the standards of their franchise premises you may choose to terminate that franchisee's agreement.

When you review the section of your franchise agreement that deals with termination, you should identify the defaults that allow for a franchisee to cure a particular default. A cure period is the time in which a franchisee may correct a default, and therefore avoid termination. You should also identify which conditions of the franchise agreement do not permit a cure period.

Some other breaches of the franchise agreement that may be cause for termination include:

the failure to fulfill minimum purchase requirements;
the misuse of intellectual property;
the sale of unauthorized goods or services; and
the violation of a non-compete agreement.

When reassessing the terms of your franchise agreement, you may want to get the help of an experienced New York franchise lawyer. A New York franchise lawyer can review the terms of your existing agreement, and identify opportunities for improvement.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Strengthening Your Franchise Agreement

Thu, 30 Dec 2010 08:00:00 EST

With the start of a new year, it may be time that you as a franchisor consider reassessing the terms and conditions of your franchise agreement. By doing so, you may improve the efficiency of your franchise system, as well as protect your business interests. You can touch base with your New York franchise lawyer about any shortcomings in your current franchise agreement and how most effectively to address those issues.

Two conditions of your franchise agreement that you should reassess going into the New Year include:

your initial franchise fees - over time, the costs of starting a new franchise may go up or may go down. This may be due to the economy, due to the costs of raw materials, or due to trends in the marketplace. Therefore, before you ring in the new business year, you should make sure that your required fees are enough to cover your business costs; and
your non-compete agreement - in your non-compete agreement, you can restrict a franchisee from participating in a business that is similar (or identical) to yours. This may restrict a franchisee from competing with your business for up to several years, and within a certain distance.

If you need assistance to reassess the terms and conditions of your franchise agreement, you may want to get the professional help of a New York franchise lawyer.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

If a Franchisee Has Requested an Earning Claims Statement

Wed, 29 Dec 2010 08:00:00 EST

As a franchisor in New York, you will be required to provide specific disclosures to potential franchisees. This will include financial information about your business, such as a recent balance sheet. However, a potential investor may ask for more information than is required.

One of the additional things that a potential investor may ask for is an earning claims statement. An earning claims statement is a document that outlines the history and future predictions of your profits, sales and expenses. Again, this information is not required in the Franchise Disclosure Document (FDD), but you may want to make it available to prospective franchisees.

By making your earning claims statement available, you can give potential investors an idea of their projected returns. If an investor asks for this information, and the information is refused, they may suspect that there is something about the franchise that you want to hide.

When preparing an earning claims statement for potential franchisees, you may want to get the professional help of a New York franchise lawyer. An experienced lawyer can review your financial information, and help you prepare your earning claims statement. This will help to give potential franchisees the information they need to feel comfortable investing in your franchise in New York, as well as potentially help prevent future disputes with unsatisfied investors.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Determining How Much an Initial Franchise Fee Should Be When Starting a Franchise

Mon, 27 Dec 2010 08:00:00 EST

An initial franchise fee is a fee that franchisors charge franchisees when purchasing a franchise. The initial franchise fee is intended to compensate franchisors for the license granted to franchisees (i.e. to operate a franchised location) and to reimburse the franchisor for the administrative tasks and training that will be involved in getting your new franchise up and running. Structuring the right franchise fee is critical. Some factors to consider include:

Cost of providing a thorough initial training program

Cost associated with your franchisee recruitment and selection process

The scope of the protected territory, if any, that will be granted

Costs associated with assisting franchisees with site selection

The value and recognition of your existing trademarks and trade dress

There is no set formula for selecting the "right franchise fee" for your business, just factors that you must consider and evaluate. Selecting the right fee is more "art" than "science".

For more information on starting a franchise request a complimentary copy of "The Franchise Formula: A Guide to Franchising Your Business in the New Economy" by Charles N. Internicola franchise lawyer.

Advantages and Disadvantages of a Restaurant Franchise

Sun, 26 Dec 2010 08:00:00 EST

The purchase of a franchise - any franchise presents itself with both advantages and disadvantages. Many of these so called "advantages" and "disadvantages" are similar between different types of franchises. However, when dealing with the purchase of a "restaurant" franchise, prospective franchisees must be aware of unique factors particular to the restaurant industry.

A recent article in Food & Drink Digital addresses some factors that prospective restaurant franchisees should evaluate and consider when purchasing a restaurant franchise. In the article the author lists the following factors/considerations [I have included my comments after each point]:

Advantages of a Restaurant Franchise

A well established name - Most franchise locations have a well known and established name. This is especially true of restaurant franchises. From people on lunch breaks to those traveling to the person having a craving to eat the franchised company's food specific food franchises are usually well known enough that people already know if they want to eat the product. The only major thing that must be considered is the most beneficial location for the restaurant franchise.

[My take: Don't "overestimate" the value of a franchisor's trade name. Sure there will be significant brand recognition if you are dealing with a well known and established restaurant or food service business such as a McDonalds ®, Dunkin Donuts ®, or other established national or regional franchise. However, the vast majority of restaurant franchises involve regional franchisors who still have a long way to go in establishing brand recognition. So, don't overestimate a potential franchisors fancy trademarks and trade dress]

Financing - Funding for food operation businesses is usually simple with banks because they typically know what is involved with opening a restaurant therefore the bank knows exactly what to look for to make them feel comfortable approving the loan.

[My take: Financing is never easy and in today's economic climate no matter what franchise you are buying, always assume that bank financing will be difficult. Chances are that your best source of financing may come from an equity loan on your home. If this is the route your are taking - proceed with caution]

Training and support - The amount of training and support given by a good restaurant food franchise businesses is valuable.

[My take: This is true. But every franchise is different. Some franchisors offer valuable and thorough training and others completely "drop the ball" when it comes to training. Do your research]

Disadvantages of a Restaurant Franchise

High employee turnover rate - In the food business a large amount of employees are usually necessary to run the franchise so it operates properly and smoothly and usually the majority of the employees receive considerably low pay. This usually leads to inconsistent employees or unreliable employees with a high turnover rate. Keeping and finding good employees is usually a struggle because of the low pay and creates an environment where you will need to make sure that every new employee is properly trained to uphold the name of the franchise as far as work ethic and quality is concerned so that your franchise may continue to mirror that of other franchises.

[My take: I agree.]

Price sensitive - Often times, especially when dealing with fast food chains, there is a very fine line between good costs and labor and making profit. Along with the price a franchisee must consider the cost of food spoilage and other unforeseen issues such as theft which are more likely to be present with employees at restaurants and fast food chains.

[My take: These are accurate factors. Also, you must consider the "additional costs" that you will incur when purchasing "proprietary" and "non-proprietary" products from the franchisor's approved vendors. Increased costs associated with "approved vendors" will impact your profitability.]

Franchise Costs - Keep in mind that when buying a restaurant franchise a substantial investment is usually required. All necessary equipment including food, ovens, proper food disposal machines, venting, furniture, etc. should be things that are considered when buying a restaurant franchise. Other costs to consider that are associated with a franchise are royalty payments and marketing costs.

[My take: Royalties, advertising fund fees and premiums for proprietary product purchases will substantially "impact" the "profitability" of your restaurant franchise. So, it is critical that you conduct thorough due diligence and speak to existing franchisees.]

For more information on buying a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by franchise lawyer Charles N. Internicola.

New York Franchise Regulation: Properly Disclosing Restrictive Covenants in Your FDD

Sat, 25 Dec 2010 08:00:00 EST

The lifeblood of every good franchise system relates, in large measure, to consistency and uniformity. To achieve this, a properly prepared franchise agreement and FDD will contain restrictive covenants respecting the franchisees operations. To ensure that franchisees are adequately informed about the restrictive covenants imposed on them, New York State Franchise Regulation require franchisors to disclose restrictions and conditions imposed by the franchisor on the goods or services that the franchisee may sell, including restrictions that limit the customers to whom the franchise may sell goods or services . Many of these restrictions are disclosed in FDD Item 16.

For more information on FDD Disclosures and the preparation, filing and registration of your New York FDD, receive a complimentary copy of franchise lawyer Charles N. Internicola's book "The Revised Franchise Formula: A Guide to Franchising your Business in the New Economy".

Franchisors: It is Always Critical to Insure that the Statements in Your FDD are "Consistent"

Fri, 24 Dec 2010 08:00:00 EST

As a franchisor it is critical to consistently implement with your staff and franchise attorneys a consistent review process to ensure that your FDD is accurate, up to date, and contains representations that are consistent. The Federal Franchise Rule prohibits inconsistent statements in franchise disclosure documents. As such franchisors must insure that the FDD disclosures are not contradicted by verbal statements or non-FDD writings provided to the franchisee.

Too many times FDD's are not realistically drafted. That is, if the FDD is rigidly drafted and does not account for the economic realities faced by your franchise sales staff, chances are, you may be headed toward regulatory compliance issues. This is particularly important when dealing with financial performance representations (FDD Item 19). According to the Federal Trade Commission records the most common regulator incident occurs when a franchisor contradicts its Item 19 disclosure with oral representations by sales staff.

Consistency is key. A realistically drafted FDD is key. An honest and diligent franchise sales compliance program is key. For more information on similar information to making sure your FDD is consistent and accurate request a complimentary copy of Charles N. Internicola's book for franchisors, "The Revised Franchise Formula: A Guide for Franchising Your Business In the New Economy".

Google and Keyword Trademark Infringement

Thu, 23 Dec 2010 08:00:00 EST

There has been a lot of news over the years about Google and trademark infringement. The issue is that Google allows people to purchase keywords with registered U.S. trademarks. For instance, if you own the trademark "Joe's Crunchy Chicken," and someone purchases the keyword "Joe's Crunchy Chicken" to advertise their website, this may result in a case of trademark infringement.

Because this type of advertising on the Internet is relatively new, trademarked keywords create a gray area when it comes to trademark law. There have been many court cases related to Google and the sale of trademarked keywords to companies besides the trademark owner. While Google has won some cases, it has lost some cases as well, and there is no telling how a case of infringement may conclude.

If you feel that Google or any other Internet search engine is infringing upon your trademark by selling your trademarked keywords to your competitors, you may send them a letter to cease and desist from infringement. If the infringement continues, you may choose to pursue the issue in a formal court of law.

In a trademark infringement lawsuit, you will have to show:

that a likelihood of confusion exists between the other company's mark and your registered mark;
that infringement has created a secondary meaning for your mark; and
that the mark was used in commerce.

To protect your trademarked keywords, you can get the help of an experienced New York trademark lawyer.

Contacting a New York Trademark Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's trademark law services in New York and how he assists entrepreneurs franchise their business nationwide.

What are trademarked keywords?

Wed, 22 Dec 2010 08:00:00 EST

When you register a trademark with the United States Patent and Trademark Office (USPTO), you are acquiring the right to use that mark in connection with goods and/or services. And with that comes the right to protect your trademark from infringement by other parties. This means that if anyone else uses your trademark in connection with their own goods and/or services, you may take legal action against them.

There is a grey area in this law when it comes to Internet keywords. A trademarked keyword is a keyword that includes a federally registered trademark. Examples of trademarked keywords may be "Coca-Cola Drinks" or "Subway Sandwiches." Because the Internet is relatively new, there are no clear laws regarding the use of trademarks on the Internet.

But if you do purchase trademarked keywords with the intention of using them for online advertising, you may be in violation of a company's registered trademarks. Therefore, you must be careful when purchasing trademarked keywords. Before you do, you may want to get advice from a New York trademark lawyer.

When you purchase trademarked keywords for your business in New York, your New York trademark lawyer can advise you on the trademark laws that may affect your decision.

Contacting a New York Trademark Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's trademark law services in New York and how he assists entrepreneurs franchise their business nationwide.

Approving New Suppliers for Your Franchise in New York

Sun, 19 Dec 2010 08:00:00 EST

As a franchisor in New York, you may be involved with supplying franchisees, or with regulating the chain of supply throughout your franchise system. In doing so, you may establish procedures for the approval of new brands of suppliers. You can establish these procedures by ensuring that they are clearly delineated in the franchise agreement.

Oftentimes, a franchisor will limit the number of approved suppliers that franchisees may buy from. This will help you maintain control over your products and services, establish uniformity within your system, and lower the costs of supplies. To maintain your limitations, you can establish a process for the request and investigation of new brands of suppliers.

In the supplier approval process, you might charge a fee for reviewing and evaluating a proposed brand or supplier. This fee will often cover the out-of-pocket costs of making your decision. When you do choose a supplier for your franchisees, you may require a royalty for the use of your company's trademark on products that will be sold throughout your franchise system.

If you need help establishing your terms and conditions for supplying franchisees, or with the other details of your franchise agreement, you can get the professional help of a New York franchise lawyer.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Franchisor Issues: Maintaining Franchise Standards

Thu, 16 Dec 2010 08:00:00 EST

As a franchisor in New York you know the value of maintaining high standards throughout your franchise system. One of the ways you can maintain your standards is by establishing a uniform system for your franchisees. This may include establishing a system wherein you take charge of supplying franchisees. This means that you can specify who your franchisees' suppliers are, and control the goods and services that are sold throughout your system.

When supplying franchisees, you will need to establish your terms of supply within the franchise agreement. To achieve consistency in your system, you can describe the specifications, standards, and operating procedures that each franchisee must follow.

In the area of supplying franchisees, you may designate approved suppliers that franchisees must buy from. You can also designate the goods and services they must buy and the presentation, packaging, and delivery of those products.

On the financial side, you may also set minimum requirements for the purchase of goods and/or services.

But supplying franchisees is just one area within your franchise agreement. There are many terms and conditions that you must establish for franchisees. When establishing the terms for your franchise system, you may want to get the help of a New York franchise lawyer who has experience in putting together franchise agreements.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Registering a Trademark for Initials and/or Numbers

Sat, 11 Dec 2010 08:00:00 EST

If you want to register a trademark for your business in New York, your trademark may consist of initials or numbers. In fact, initials or numbers may be registered the same way that words may be registered as a trademark. However, if you choose to register initials or numbers, they may not be the same as those that identify a government agency (for example the CIA, FBI, IRS, etc.).

Furthermore, when registering a trademark for your business in New York, initials may not be the same as a government grading system (for example the Department of Agriculture's "grade A" rating for meat). Some examples of successful trademarks that have used initials or numbers include A-1 brand sauces and condiments, KFC for Kentucky Fried Chicken, as well as the convenience store chain 7-eleven.

If you are planning to register a trademark in New York, whether it is a word, a number, an initial, or a symbol, you can get the professional help of a New York trademark lawyer. A New York trademark lawyer can help you throughout the registration process. Furthermore, once you have federally registered your trademark in New York, your New York trademark lawyer can help you protect your original mark from instances of infringements and dilution.

Contacting a New York Trademark Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Remedies for the Termination of a Franchise

Sat, 11 Dec 2010 08:00:00 EST

If you have sold a franchise in New York, franchise relationship laws offer remedies in the event of termination or non-renewal. These remedies will generally benefit the franchisee. An understanding of these laws may allow you to make a more informed decision when it comes to terminating a franchise in New York.

Remedies available under franchise statutes may include:

the repurchase of inventory and other items;
payment for goodwill;
injunctive relief;
damages (such as lost profits, un-recouped expenses and punitive damages); and
attorney fees.

Furthermore, a court may require compensation of a terminated franchise for lost profits, damages in the reasonable amount of the value of the business or other considerations. These things will be determined by a court according to the most current New York franchise laws.

Under some franchise laws, state authorities are also empowered to seek civil remedies and criminal actions.

If you have sold a franchise in New York, state laws may require good cause for the termination or non-renewal of the franchise. This means that in order to terminate a franchise in New York, you will have to prove good cause. Some people refer to this as the perpetual agreement issue, as it seems to ensure the likely continuation of the initial franchise agreement. A New York franchise lawyer will have knowledge of the most up-to-date franchise laws in New York and help you to assess your legal situation.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

General Terms for Transferring a Franchise in New York

Fri, 10 Dec 2010 08:00:00 EST

Before transferring a franchise in New York, there are numerous conditions that the franchisor might require of the franchisee. These conditions will relate to the recipient of the franchise, and may be specific to the recipient's:

character;
financial and operational capabilities;
business experience;
aptitude and attitude;
involvement in other competitive businesses; and
their satisfactory completion of the franchisor's training program.

Other conditions for transferring or selling a franchise may include:

the franchisee's satisfaction of all outstanding payments,

that the recipient of the franchise in New York assumes the franchise agreement;

that the franchisee or recipient pays a transfer fee;

that the franchisee agrees to comply with the franchisor's non-compete provisions; and

that the franchisee signs a general release of claims against the franchisor and its affiliates and their respective owners, officers, directors, and employees.

These conditions for transferring a franchise may be unique in each franchise agreement. A New York franchise attorney can help you understand your rights based on your specific franchise agreement.

You can learn more about selling or transferring a franchise by visiting our article library.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.
and the submission of all outstanding reports;

Kid's Clothing Store Sues for Trade Secret Theft

Thu, 09 Dec 2010 08:00:00 EST

According to Freep.com, an Ann Arbor based store called Children's Orchard, which is a retail chain that sells used children's clothing, has filed a lawsuit against two franchise owners in Oklahoma City, for the alleged theft of a trade secret. The lawsuit accuses the franchisees of violating a franchise agreement and a non-compete agreement, as well as stealing Children's Orchard's trade secret.

The lawsuit came after the defendants in the suit opened their own store specializing in the sale of used children's clothing, which they named Upsy Daisy. In the suit, Children's Orchard claims that Tiffany Thomas, the co-founder of Upsy Daisy, and her ex-husband signed a franchise agreement (2005) to own a Children's Orchard store in Oklahoma City for a period of 10 years.

However, in July of 2010, Thomas and her ex-husband abandoned their Children's Orchard franchise, and moved to another location where they opened Upsy Daisy. Thomas claims that no trade secret was stolen in the move.

How a New York Business Lawyer Can help

If you have been the victim of trade secret theft, a New York business lawyer may pursue damages in a lawsuit. In a trade secret theft lawsuit, your New York business lawyer can represent your legal interests.

Contacting a New York Business Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York business lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Rights to Transfer a Franchise

Wed, 08 Dec 2010 08:00:00 EST

Generally, most franchisors reserve their own right to transfer a franchise in New York. This includes the right to transfer the franchise agreement, as well as the ownership interests. This right is reserved in case of an acquisition by another company, and generally specifies that such a transaction may take place only if the successor is "reasonably qualified" to perform the franchisor's obligations.

On the other hand, franchisees may not transfer a franchise without the franchisor's consent. This restriction generally applies to the transfer of a franchise and franchise agreement, an ownership interest in the franchise, the business facility and its assets, and leases or subleases. This includes voluntary and involuntary transfers, lifetime transfers, and transfers upon death and disability.

However, if the franchisor consents to the transfer of a franchise, then such a transaction is possible once all obligations are met. These obligations may include that a written notice of the transfer be provided to the franchisor, and that the transferor remains liable for the terms of the franchise agreement.

You can learn more about selling or transferring a franchise by visiting our article library.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Vegas Trademark Dispute Devastates 2 Businesses

Tue, 30 Nov 2010 08:00:00 EST

As told in a recent article published by the Las Vegas Sun, two small Las Vegas businesses, both with the same name, have been involved in a bitter trademark dispute for the past year and a half. The businesses, which both go by the name of Appliance Doctor, have caused each other so much confusion that one has gone bankrupt, while the other is on the verge.

The business owners involved in the dispute are two Law Vegas couples: the Gravinos and the Jagmins. According to the lawsuit, the Gravinos have been doing business as the Appliance Doctor in Vegas since 1989, while the Jagmin's business did not come about until recently, in 2009. Soon after Sam Gravino found out about the Jagmin's business, he began to receive phone calls from disgruntled customers of the Appliance Doctor.

The only problem was that Sam Gravino had never dealt with the customers who were calling him. Now, Gravino has filed a lawsuit claiming that the Jagmins traded off of the goodwill that the Gravinos had established over their 20 years in business. The suit has demanded more than $20,000 in compensatory and punitive damages, as well as an injunction against the Jagmins.

If you have been involved in a similar trademark dispute, a New York business lawyer may be able to help you resolve your business issues. In a trademark dispute lawsuit, a New York business lawyer can represent your legal interests.

Contacting a New York Business Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York business lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Domain Names vs. Trademarks

Tue, 30 Nov 2010 08:00:00 EST

To register a domain name, or URL, for your business in New York, you can do so electronically via one of many domain name registrars (Network Solutions, Inc; Godaddy.com). Depending on which options you choose for your domain name registration, this generally costs less than $50. Once your domain name has been registered, you can take the necessary steps to get your website up and running.

To officially register a trademark, you must submit an application with the United States Patent and Trademark Office (USPTO). You can do this electronically via the Trademark Electronic Application System (TEAS) at the USPTO website. This application must include a $325 fee.

A registered domain name does not serve as a federally registered trademark, nor does the process work vice versa. To register both, you will have to do so separately. However, once you have officially registered a trademark, this may protect your legal rights to any confusingly similar domain name.

To register a trademark for your business in New York, you can get the professional help of a New York trademark lawyer. Once your trademark has been registered with the USPTO, your New York trademark lawyer can help you protect your rights to that mark.

Contacting a New York Trademark Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Can I apply for a trade secret?

Wed, 24 Nov 2010 08:00:00 EST

A trade secret may be defined as classified business information that derives (or may derive) economic value. This may be a formula, a recipe, a pattern, a program device, a method, a technique, or a process, which is kept a secret to preserve its economic value. For instance, the recipe for Coca-Cola is considered a trade secret.

However, unlike patents and trademarks, a trade secret can not be applied for or registered in the United States. Nor can a trade secret be awarded or granted the same way that a patent would be granted. Trade secrets are, however, protected under U.S. law, by legislation that is commonly known as the Uniform Trade Secrets Act (UTSA).

Under the Uniform Trade Secrets Act, anyone who steals, misappropriates, or unlawfully obtains a trade secret may face legal consequences. Under the act, misappropriation is defined as:

The acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or disclosure or use of a trade secret of another without express or implied consent...

The consequences for a violation of the Uniform Trades Secrets Act may include a maximum fine of $500,000 and up to 15 years in prison.

To take legal action against the theft of your trade secret(s) in New Jersey, you can get the professional help of a Monmouth franchise lawyer. A Monmouth franchise lawyer can represent your legal interests in a formal court of law.

Contacting a Monmouth Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Monmouth franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New Jersey and how he assists entrepreneurs franchise their business nationwide.

Registering a Trade Dress

Wed, 24 Nov 2010 08:00:00 EST

Trade dress is the unique design of the packaging that is used on your business products. This is intellectually property, which can be federally registered the same as a patent or a trademark. To federally register your trade dress, and protect it against dilution or infringement, you can submit your application with the United States Patent and Trademark office (USPTO).

To register your trade dress, you can submit your application electronically with USPTO's Trademark Electronic Application System (TEAS). This can be done remotely via the USPTO website. If your trade dress application is accepted by the USPTO, you should receive a response within 3 months from the date of application.

However, depending on legal issues that may arise during the application process, it may take anywhere from 1 year to several years to federally register a trade dress. Issues that may arise include:

that the proposed trade dress contains an immoral, deceptive, or scandalous design; or
that the proposed trade dress resembles a trade dress that is already registered by the USPTO, and therefore is likely to cause confusion or deception.

Therefore, before you register your trade dress with the USPTO, you should consult with a Monmouth franchise attorney. A Monmouth franchise attorney can review your trade dress design, and conduct a search of trade dresses that have already been federally registered. This can help you avoid making costly trade dress mistakes.

Contacting a Monmouth Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Monmouth franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New Jersey and how he assists entrepreneurs franchise their business nationwide.

What is Trade Dress?

Tue, 23 Nov 2010 08:00:00 EST

Trade dress can be defined as the visual appearance of a product or its packaging design. This refers to the artwork, color, size or other characteristics of the packaging. For example, the design of a Campbell's Soup can is a well-known trade dress. And like a patent or a trademark, a trade dress can be federally registered with the United States Patent and Trademark Office (USPTO).

The significance of a trade dress is that it can be used to identify your business products, and to help you build a brand. When designing your trade dress, you should develop standard guidelines, so that its use is consistent on all of your goods. This will help protect your trade dress against dilution and infringement.

If someone does infringe upon your federally registered trade dress, you may take legal action to prevent the infringement from continuing. To do so, you may find it necessary to file an infringement lawsuit. In a trade dress infringement lawsuit, a Monmouth franchise lawyer can represent your legal interests.

To register your business' trade dress with the USPTO, or to put a stop to trade dress infringement, you should get the professional help of a Monmouth franchise lawyer. To learn more about why trade dress is an essential aspect of business for an entrepreneur like a franchisor, please visit our article library.

Contacting a Monmouth Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Monmouth franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New Jersey and how he assists entrepreneurs franchise their business nationwide.

American IT Companies Lead the Way in Trademark Infringement Lawsuits

Mon, 22 Nov 2010 08:00:00 EST

November 19, 2010 - According to the U.K.-based website RealBusiness.co.uk, over the last year, American IT companies have been responsible for filing 24% of name infringement claims in the Company Names Tribunal.

As reported by the legal information company Sweet and Maxwell, small software developers across the U.K have been unlawfully using names such as Intel Corporation and Sun Microsystems in connection with their goods and services. In the last 12 months, Intel alone has brought 15 claims against companies that have used its name.

Sweet and Maxwell explains that small startup companies are infringing upon larger companies' names in order to advertise their knowledge of the larger company's products. Without proper authorization to do so, such behavior is generally a case of trademark infringement.

In another prominent case of U.K.-based trademark infringement, Nestlé has filed a claim against Kitty Kat UK, the name of which is confusingly similar to Nestlé's Kit Kat brand.

If you sell franchises in New York and someone has infringed upon your intellectual property, you may send that person (or company) a letter to cease and desist. If you have suffered economic damages because of an act of trademark infringement, you may seek to recover those damages in a formal court of law. To do so, you can get the help of an experienced New York franchise lawyer.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

What is a trade secret?

Sun, 21 Nov 2010 08:00:00 EST

A trade secret can be defined as business information that derives independent economic value. A trade secret is something that is meant to stay undisclosed. When a trade secret is leaked, other people could potentially benefit from its financial value.

This is why a trade secret is usually considered to be classified information. A trade secret may be a formula, recipe, process, specific product design or other business information that is not public knowledge. Because trade secrets provide economic benefit to a business or a corporation, they are protected by the Uniform Trade Secrets Act.

Under the Uniform Trade Secrets Act, anyone who steals, misappropriates or unlawfully disseminates a trade secret may be punished under U.S. law. What this means is that if someone has stolen or misappropriated your classified business information, then you may choose to file a lawsuit and pursue financial damages. Under the Uniform Trade Secrets Act, a violation may be punishable by fines of up to $500,000 or imprisonment of up to 15 years.

To take legal action against the theft of your trade secret(s) in New Jersey, you can seek help from a Monmouth franchise lawyer. A Monmouth franchise lawyer can represent your legal interests in a formal court of law, when necessary.

Contacting a Monmouth Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Monmouth franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New Jersey and how he assists entrepreneurs franchise their business nationwide.

How long does it take to register a trademark?

Sat, 20 Nov 2010 08:00:00 EST

There is no standard amount of time for trademark registration, as there are many factors that can influence the trademark registration process. Generally, when you file an application electronically with the United States Patent and Trademark Office (USPTO), you will almost immediately receive a filing receipt. If you file by mail, it may take 2 weeks to receive your receipt.

Once you receive the filing receipt, you will see that it contains the serial number of your application. This serial number must be included with all future correspondences with the USPTO. If your application is accepted, you should receive a response from the USPTO within approximately 3 months from the date of application.

Depending on legal issues that may arise during the examination of your application, it may take anywhere from one to several years to register a trademark.

To check the status of your trademark registration, you can view your records through the Trademark Applications and Registrations Retrieval (TARR) database at the USPTO website.

If you are planning to register a trademark with the USPTO, you should first conduct a thorough search of trademarks that are already in existence. This can prevent you from a conflict with an existing trademark owner. To register a trademark with the USPTO, you can seek help from an experienced New York trademark lawyer.

Contacting a New York Trademark Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Document. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Hyundai Files Trademark Infringement Lawsuit

Fri, 19 Nov 2010 08:00:00 EST

According to the news source Toledoblade.com, the company responsible for the distribution of Hyundai automobiles in the U.S. has filed a trademark infringement lawsuit against one of its former dealers in Ohio. The lawsuit accuses the dealer of improperly using the Hyundai logo and trademarks in advertising campaigns.

The lawsuit was filed by Hyundai Motor America in U.S. District Court in Toledo against the dealership, Brown Motor Sales Company, and the owner of the dealership, Robb Brown. According to the trademark infringement lawsuit, Brown advertised Hyundai services after he was no longer authorized to do so.

Brown's franchise license was terminated by Hyundai last year when the car maker rescinded his authorization to continue warranty work. As a result of the termination, Hyundai stopped providing Brown's dealership with vehicles to sell.

If you sell franchises in New York, and you have been the victim of a similar case of trademark infringement, you can send the offending party a letter to cease and desist from infringement. If the offending party refuses to cease and desist, you may take legal action in a formal court of law. To do so, you can get the professional help of a New York franchise lawyer.

In a trademark infringement lawsuit, a New York franchise lawyer can represent your legal interests.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

The Madrid Protocol

Thu, 18 Nov 2010 08:00:00 EST

The Madrid Protocol, which is also known as the Madrid System, is an international system that facilitates trademark registration. Under the Madrid System, a United States trademark owner may file an international trademark application with the International Bureau of the World Intellectual Property Organization. This organization will grant the rights to an original mark in multiple jurisdictions around the world.

This system provides trademark protection in multiple countries, which makes it more effective than seeking protection in each individual country of interest. This allows an applicant to file one application in one jurisdiction and with one set of fees. It also allows registrants and trademark owners to make any necessary changes through one administrative office.

As of October 2010, there were 83 countries participating in the Madrid System.

Before registering a trademark under the Madrid System, an applicant must first obtain an existing registration with an existing member of the system. In other words, if you are a United States business owner planning to register under the system, you must first register your trademark with the United States Patent and Trademark Office (USPTO).

If you are planning to register a trademark with the USPTO, you should first conduct a thorough search of trademarks that are already in existence. This can prevent you from a conflict with an existing trademark owner. To register a trademark with the USPTO, you'll want to seek assistance from a New York trademark lawyer.

Contacting a New York Trademark Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Document. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Your Lawyer's Role in Helping You Avoid Potential Franchise Disputes

Wed, 17 Nov 2010 08:00:00 EST

When you invest in a franchise in New York, you will sign a Franchise Agreement which legally binds you to the franchisor. Any breach of this agreement can ultimately lead to a damaging franchise dispute. Therefore, before you sign the franchise agreement for a franchise in New York, you should go over the legally binding terms with a New York franchise lawyer.

The franchise agreement will obligate you to certain business terms. These terms may include minimum purchase orders, non-compete agreements and monthly royalty payments.

There are several ways in which a franchisee may breach the terms of the franchise agreement, including:

failure to meet the minimum maintenance standards for your franchise in New York;
encroachment on the territory of another franchisee;
failure to sufficiently contribute to advertising and marketing funds;
misuse of a franchisor's trademark; and
sale of unauthorized goods or services

Your New York franchise lawyer can carefully explain each aspect of the agreement to you and help you to determine whether it is fair and in your best interest to sign the agreement. By taking this step at the offset, you may be able to reduce the chances that you and the franchisor will come to a disagreement or dispute further down the road.

Because the stakes are so high in a business investment such as this, it is in your best interest to partner with a New York franchise lawyer who you can trust and who has experience in handling franchise relationships from a variety of angles.

When It Is Time to Hire a Franchise Lawyer in New York

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

How to Tell If a Franchise Is a Good Franchise Opportunity

Mon, 15 Nov 2010 08:00:00 EST

In a recent article, "Things That Help Identify A Good Franchise Opportunity", on NUWireInvestor.com Don Sniegowski goes over some useful signs to better assess the viability of a franchise opportunity that you may be evaluating.

Don Sneigowski mentions some key points that should be carefully considered by prospective Franchisees when considering a Franchise opportunity. These "points" include:

Franchise metrics - Consider things such as how many stores were sold but are not opened, the franchise loan default rate for franchisees not paying back SBA backed loans compared to other companies in the same type of franchise, and franchisee satisfaction which can be figured out by franchise surveys or by speaking with franchisees directly.
Checks and Balances - Find out if there is an independent franchise association with elected offices that the franchisees can participate in or if there is a franchise cooperative where elected franchisee representatives are responsible for system wide functions such as advertising purchasing, etc.
Entrepreneur Development - Check if the franchise has a franchisee to apprentice mentoring system in place. Also, see if the franchise has a franchisee to franchisee mentoring system. These are things that will help you as a new franchisee get the help you need when buying a franchise.

Additionally, Mr. Sneigowski identifies certain "red flags" that prospective Franchisees should keep an eye out for when purchasing a franchise:

There aren't many - or any - company owned stores - A franchisor who has company owned franchise locations often has a better understanding of the franchisees needs because they know firsthand how their own stores are operating.

Young and growing super quickly - Growth is good but growth that is out of control can cause serious problems when it comes to the franchisors ability to support franchisees. Controlled franchise growth is a sign of a good franchise opportunity.

Negative information on the internet -The internet is a very useful source and can be useful for finding out positive or negative information about the franchise you are considering purchasing also. Blogs and forums are very good ways to get an idea of opinions from people who are either satisfied or dissatisfied with the franchise you are looking for.

The franchise doesn't do business in any franchise registration states - This can be a major red flag if the franchisor does not want to do business in any franchise registration states because that mean that the franchisor does not want to file his/her Franchise Disclosure Documents ("FDD") with the state and have them reviewed by the state. They may be trying to cover something important up.

There is a lack of business and franchise experience with the franchisor's officers

The franchisor is trying to cover up information about prior lawsuits - If you have access to Lexus-Nexus or WestLaw legal databases it is always in your best interest to do a little research about the franchise and its prior legal history. Prior lawsuits must be listed in the FDD for the franchise. If you go through the FDD and find that there are some lawsuits left out of their documents when compared with a legal database it would probably be in your best interest to continue on your search for a franchise elsewhere.

The points raised by Mr. Sneigowski are excellent and deserve careful consideration by anyone considering the purchase of a Franchise. For more information about choosing a franchise opportunity request a complimentary copy of Charles N. Internicola's book "An Entrepreneurs Guide to Purchasing a Business or Franchise".

The Role of a Franchise Lawyer: Helping Prospective Franchisees

Mon, 15 Nov 2010 08:00:00 EST

Before investing in a franchise in New York, it is vital that you have a full comprehension of the business venture upon which you are embarking. Owning a franchise in New York is not the same as starting a business from scratch.

While in some ways, it may be a relief to have a business "blueprint" to follow, there are other considerations, such as the franchisor's rules by which you must abide, fees that must be paid and obligations that must be met. Before investing in a franchise in New York, a prospective franchisee would benefit from working with a New York franchise lawyer to learn more about the process.

Some of the important points that a New York franchise lawyer can educate you on include:

that franchising is a long-term relationship,in which the franchisee must give up a significant amount of independence;
that there are no guarantees of financial results;
that owning a franchise frequently involves long hours and hard work;
that a franchise agreement is usually legally enforceable and difficult to get out of once it has been signed; and
that investing in a franchise in New York involves risks that are different from those involved with ordinary business ventures.

If you are considering investing in a franchise in New York, then you should seek the assistance of a New York franchise lawyer early in the process.

When it's Time to Hire a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

When a Similar Trademark Causes Confusion

Sun, 14 Nov 2010 08:00:00 EST

If you own a trademark in New York, and someone else has applied for a trademark that is likely to be confused with your own, you may choose to file an opposition to the confusing mark. According to the United States Lanham Act, you may contend that:

"The applicant's mark consists of or comprises of a mark which so resembles a mark registered in the United States Patent and Trademark Office (USPTO), or a mark or trade name previously used in the United States...as to be likely, when used on or in connection with the goods of the applicant, to cause confusion, or to cause mistake, or to deceive."

Therefore, if you do feel that an applicant's trademark may cause confusion with your own, you may choose to oppose the trademark by filing a Notice of Opposition with the USPTO.

If you choose to oppose a trademark that is confusingly similar to your own, you will have to challenge that trademark's registration with the USPTO. To do so, you can get the professional help of a New York trademark lawyer. In a trademark opposition, a New York trademark lawyer can represent your legal interests.

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Time Limit to Renew a Trademark

Sat, 13 Nov 2010 08:00:00 EST

If you plan to renew a trademark in New York, there is a specific time limit in which you must file for renewal of your mark. To renew a trademark, the owner must file a Declaration of Continued Use and an Application for Renewal between the 9^th and 10^th years after the original registration date.

If you are late in filing these documents with the United States Patent and Trademark Office (USPTO), they will be also be accepted if filed within 6 months after the deadline. If you do file late, there will be an additional fee required.

Because the timing of these 2 filings coincide, the USPTO has created a form called the Combined Declaration of Use in Commerce and Application for Renewal of Registration of a Mark, which can be found in electronic form at the USPTO website.

To renew a trademark, there is a specific list of information that you will need to provide. In addition, you will have to pay a filing fee and submit it with your documents. To renew a trademark in New York, you can consult with a New York trademark lawyer.

A New York Trademark Lawyer Can Help Every Step of the Way

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Notification of Opposition Proceeding

Thu, 11 Nov 2010 08:00:00 EST

Once someone opposes the registration of a trademark with the United States Patent and Trademark Office (USPTO), and the Notice of Opposition is filed, the USPTO's Trademark Trial and Appeal Board (TTAB) will send a Notification of Opposition Proceeding to both the trademark applicant and the opposing party. According to the USPTO, this notification:

"Shall identify the title and number of the proceeding and the application involved and shall designate a time, not less than thirty (30) days from the mailing date of the notification, within which an answer must be filed."

However, in a trademark opposition proceeding, the defendant (applicant) does not have to file an answer to the Complaint until they receive the Board's Institution Notice and Trial Order, which sets the time for filing an answer, which is generally forty (40) days from the mailing date of the Notice of Opposition.

If you choose to oppose a trademark that is confusingly similar to your own, you will have to challenge that trademark's registration with the USPTO. To do so, you can get the professional help of a New York trademark lawyer. In a trademark opposition claim, a New York trademark lawyer can represent your legal interests.

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Important Factors to Consider Before Buying a Franchise in New Jersey

Thu, 11 Nov 2010 08:00:00 EST

Franchised businesses are generally characterized as being a way to buy a business that is somewhat already established making it, in a sense, easier to start than starting a non-franchised business. Entrepreneurs looking to buy a franchise should also be reminded that you must do your homework before buying a franchise to make sure the that they will succeed after a franchise purchase.

In a recent article, Franchising Can be Rewarding if You Do Your Homework, on MyJerseyCentral.com reminds entrepreneurs in New Jersey considering buying a franchise of some important factors to consider before purchasing a franchise. The tips provided can be followed whether you are purchasing a franchise in New Jersey, New York or anywhere else in the country. Some major points to consider before choosing a franchise to buy are:

Is the franchise system successful?
Does the franchisor have a good track record?
How much will it cost to open a franchise location?
How much will it cost to upkeep the franchise?
What annual fees will you have to pay for the right to continue operating under the franchise?
What form of financing will you use to buy the franchise?

All of these are questions that should be considered and answered prior to making a decision to move forward with your interest in a franchise and should be followed by a more thorough research process when you are presented with the Franchise Disclosure Documents for the franchise. Remember never sign a franchise agreement unless you fully understand the terms and provisions of the franchise agreement.

The Declaration of Excusable Nonuse

Wed, 10 Nov 2010 08:00:00 EST

If you own a trademark which is currently not in use, but you want to maintain your rights to that mark, then you must notify the United States Patent and Trademark Office (USPTO) that your mark is not in use. To do so, you will have to file a Declaration of Excusable Nonuse, which states that you have no intention of abandoning your federally registered mark.

When you submit your Declaration of Excusable Nonuse to the USPTO, you must include:

the registration number of your mark;
the name and address of the mark's current owner;
the filing fee for declaration;
a list of goods and/or services connected to the mark which is not in use;
the reasons for nonuse;
the approximate date when use in commerce is expected to resume;
the specific steps being taken to resume use; and
an affidavit or declaration that is signed and dated.

If, on the other hand, you choose to renew a trademark, you will have to submit an Application for Renewal and a Declaration of Continued Use. For help with any of these important business matters, you can seek assistance from a New York trademark lawyer.

A New York Trademark Lawyer Can Help

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

The Structure of a Franchisee Association

Sat, 06 Nov 2010 08:00:00 EST

There are several ways to structure a franchisee association. This includes defining the members, establishing voting rights, and mandating the payment of dues. However, when structuring a franchisee association, it is important that the group does not violate U.S. antitrust laws. Therefore, such a group should always get the help of a New York franchise lawyer.

Ways a group may choose to structure a franchisee association include:

Voting - This can be structured on a per-unit basis, a one member/one vote basis, or some other basis system.
Defining members - In some franchisee associations, every franchisee will be a member, while benefits may be extended to those who pay their dues. An association may also choose officers, directors, and designated representatives based on ownership interests.
Dues - In a franchisee association, dues may be levied on a per-member basis, on a per-unit basis, as a percentage of gross revenues, or on some other basis. Caps on dues may be established to encourage participation by larger franchisees. Similarly, hardship rules may be established to encourage participation by new, small, or financially troubled franchisees.

If you have purchased a franchise in New York, you may be considering the advantages and disadvantages of participating in a franchisee association. Likewise, if you are a franchisor and your franchisees have formed a franchisee association, you may have concerns about what this means for your own business interests. Learn more about franchisee associations by visiting our article library.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Document. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

The Purpose of a Franchisee Association

Tue, 02 Nov 2010 08:00:00 EST

When you buy a franchise in New York, you may find that other franchisees have formed a franchisee association. This association was formed to gain leverage against the franchisor. While this may sound like an aggressive business strategy, it is simply meant to level the playing field in the franchisor/franchisee relationship.

A franchisee association can be helpful when addressing issues that are widely shared by franchisees. It can strengthen the members' positions in:

business negotiations;
disputes with the franchisor; and
in cases of injustice.

For example, if a franchisor tries to introduce a controversial change to the franchise system, such as raising the monthly royalty payments, a franchisee association may stand united against the unpopular change. These associations generally hold meetings on a regular basis, and address the issues that affect the franchisor/franchisee relationship.

If you have purchased a franchise in New York, you may be considering the advantages and disadvantages of participating in a franchisee association. Likewise, if you are a franchisor and your franchisees have formed a franchisee association, you may have concerns about what this means for your own business interests. Learn more about franchisee associations by visiting our article library.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Document. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Class Actions in a Franchise Dispute

Sun, 31 Oct 2010 08:00:00 EST

If you own a franchise in New York, and you are involved in a franchise dispute with the business franchisor, you should find out if other franchisees are having similar issues. If they are having similar issues, one option you may have is to file a class action lawsuit. When there is a franchise dispute, an action on behalf of multiple franchisees can put more pressure on the franchisor.

Furthermore, in a class action lawsuit involving a franchise dispute, the franchisees may share the legal costs of litigation, which may ease your own financial burden. Some reasons to file a lawsuit against a franchisor include:

misrepresentations or omissions in the franchise disclosure document;
unfair changes to the franchise system, such as an increase in royalty payments; or
the unlawful termination of a franchise.

If you own a franchise in New York, and you are involved in a franchise dispute, there may be legal remedies. These remedies include legislative solutions and civil actions against a franchisor. To pursue legal remedies in a franchise dispute, you can get the professional help of a New York franchise lawyer.

If you are an entrepreneur interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Document. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

When a Franchisee Has Damaged Your Reputation

Sat, 30 Oct 2010 08:00:00 EST

If a franchisee has damaged the reputation of your franchise in New York, then you may be entitled to terminate the existing franchise agreement. For instance, if through the sale of unauthorized goods a franchisee has diluted your company's trademark, then you may choose to end your relationship with that particular franchisee. To do so, you will have to send the franchisee a notice of termination.

Generally, there is a specific amount of time in which you must send a notice of termination. In certain situations, you must allow the franchisee time to rectify the situation. If the situation can be rectified within the specified amount of time, then this may prevent termination of the franchise agreement.

In certain cases, the ability to terminate your franchise in New York will be determined by the courts. In such a case, a New York franchise lawyer can represent your legal interests.

If you have discovered good cause for the termination of a franchise in New York, then you will have to comply with certain procedural requirements for termination. To meet the procedural requirements for a franchise in New York, you can seek advice from a New York franchise lawyer.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Combating Franchisor Fraud

Thu, 28 Oct 2010 08:00:00 EST

If you own a franchise in New York, one thing you need to be careful of is franchisor fraud. Fraud may be asserted if a franchisor has made a misrepresentation in their disclosure document, such as altering their financial records. Furthermore, a franchisor may be accused of fraud for omitting a material fact.

For instance, a franchisor is required to disclose their litigation and bankruptcy history. If a franchisor fails to disclose a previous lawsuit against their company, they may be guilty of fraud for omitting this fact in their disclosures. To establish fraud, you must show that the misrepresentation was knowingly made or that it had been made recklessly.

In this type of franchise dispute, you may need to get the professional help of a New York franchise lawyer. In a case of franchisor fraud, you must show that you suffered damages as a result of the franchisor's misrepresentation.

If you own a franchise in New York, and you are involved in a franchise dispute, there may be legal remedies. These remedies include legislative solutions and civil actions against a franchisor. To pursue legal remedies in a franchise dispute, you can get the professional help of a New York franchise lawyer.

If you are an entrepreneur interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Document. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Good Cause for Terminating Your Franchise in New York

Wed, 27 Oct 2010 08:00:00 EST

If you have sold a franchise in New York and now have reasons you would like to terminate the franchise agreement, you will need to have "good cause" for doing so.

Good cause for the termination of a franchise in New York may include:

a franchisee has damaged your reputation;
a franchisee has engaged in the sale of competing products;
a franchisee has failed to maintain quality standards;
a franchisee has failed to meet your sales requirements;
a franchisee has become insolvent or unprofitable; or
a franchisee intentionally underpaid its royalties.

If any of these violations are to result in the termination of a franchise, then you will have to follow certain procedural requirements. The procedural requirements will depend upon the state in which the franchise agreement was made. Different states have different requirements for the termination of a franchise.

To meet these procedural requirements for termination of a franchise in New York, you can seek advice from a New York franchise lawyer.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising.

Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Terminating a Franchise in New York

Sun, 24 Oct 2010 08:00:00 EST

If you are a franchisor in New York, and have found good cause for the termination of a franchise, you need to follow certain procedural requirements to terminate. These requirements vary from state to state. General procedures you must follow include providing advance written notice of the termination proceedings.

When notifying a franchisee of the termination of a franchise, you need to:

provide all of the reasons for termination;
specify how much time the franchisee has to cure the default; and
continue to comply with the franchisor's obligations throughout the notification period.

When terminating a franchise, some states provide that no cure period is required in cases of abandonment, criminal conviction, insolvency or bankruptcy. To understand the laws regarding the termination of a franchise in New York, you can get the professional help of an experienced New York franchise lawyer.

If you have discovered good cause for the termination of a franchise in New York, you will have to comply with certain procedural requirements for termination. To meet these procedural requirements, you can get the professional help of a New York franchise lawyer.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Document. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

When a Franchise Breach is Incurable

Sat, 23 Oct 2010 08:00:00 EST

Sometimes the breach of a franchise agreement will lead to the termination of a franchise. If a franchisor initiates termination proceedings, they are required by law to abide by certain termination procedures. Two of these procedures are to provide notice of termination to the franchisee, and to allow the franchisee a certain amount of time to fix the problem.

In some cases, a breach may be incurable. Then a state court may determine how the termination will proceed. In a case where a breach cannot be cured within the required amount of time, a court may issue an injunction to prevent the termination of a franchise. This will allow the franchisee more time to rectify the situation.

If a franchisee has caused significant harm to a franchisor's business or good will, a court may determine that a termination is effective immediately. In this case, the franchisee will not have any time to rectify the problem, and the franchise will be terminated immediately upon notice of termination.

If you have discovered good cause for the termination of a franchise in New York, you have to comply with certain procedural requirements for termination. To meet these procedural requirements, you can get the professional help of a New York franchise lawyer.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Document. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

What is an Area Franchise?

Fri, 15 Oct 2010 08:00:00 EST

When structuring your franchise, one of your options may be to structure an area franchise arrangement. An area franchise is more or less a "bundle" of unit franchises, which are sold under a multiple unit development plan. This kind of plan grants you the right to develop a number of separate franchises, usually within a specific territory.

If you are starting a franchise in New York, and you would like to own more than one franchise location, you may want to try to negotiate an Area Development Agreement. However, not all franchisors will grant you an Area Development Agreement, so you must first learn which options are available. A New York franchise lawyer can help you research your franchise options, and may help you negotiate such an agreement if possible.

Some of the more significant elements of an area development agreement include:

the definition of your territory, including your exclusivity rights and any exceptions;
the number of outlets that will be developed;
the time frames for this development;
any assistance that the franchisor will give you during development;
your fee obligations; and
termination and its consequences.

If you plan to start a franchise in New York, there are several types of franchise structures that you may be able to choose from. However, there may be certain advantages or disadvantages in your particular case. Therefore, before you choose, you should get the professional advice of a New York franchise lawyer.

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Document. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Penalties for Failing to Register Your Franchise in New York

Thu, 14 Oct 2010 08:00:00 EST

If you plan to sell a franchise in New York, you must first register your franchise with the state administrator. If you fail to do so, you will be in violation of New York's franchise registration statutes, which means the state administrator may take legal action against you.

Legal action may include criminal penalties, such as a felony offense, as well as a $50,000 fine for the violation you have committed. Or you may face civil penalties, such as a private lawsuit.

In a private lawsuit, liability may extend to a franchise's:

controllers;
partners;
officers;
directors; and
employees who materially aided in the violation.

When you register your franchise in New York, it must include certain state-certified disclosures that are provided in the New Franchise Seller Disclosure Form. A failure to properly provide these disclosures may violate franchise registration statutes.

To make sure that you register your franchise correctly and provide the necessary disclosures, get the help of an experienced New York franchise attorney. He or she can guide you through the entire franchise registration process to help prevent violations of franchise registration statutes.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business, there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's Franchise Law Report to determine whether or not your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York, and how he assists entrepreneurs to franchise their business nationwide.

What is a Unit Franchise?

Wed, 13 Oct 2010 08:00:00 EST

When starting a franchise in New York, there are several ways in which you may be able to structure your franchise arrangement. One way is to structure your franchise as an individual, or unit franchise. Structured as a unit franchise, you will be granted the right to develop and operate one franchise at a specific location, and within a specific territory.

A unit franchise is the typical structure of a service business franchise. This is because this type of franchise requires the expertise of the business franchisee. Some examples of service businesses that are franchised on a unit-by-unit basis include those in the industries of:

foodservice;
lodging;
home inspection;
real-estate; and
automotive services.

If you invest in a unit franchise, you may be granted the rights to acquire additional unit franchises. These rights may be offered as an incentive for growth with the business franchisor. However, keep in mind that these rights may be subject to your business performance, and structured as a future option or as a right of first refusal.

If you have questions about structuring your franchise as a unit franchise arrangement, you can get the professional advice of a New York franchise lawyer.

If you plan to start a franchise in New York, there are several types of franchise structures that you may be able to choose from. However, there may be certain advantages or disadvantages in your particular case. Therefore, before you choose, you should get the professional advice of a New York franchise lawyer.

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Document. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Violating New York Franchise Registration Statutes

Mon, 11 Oct 2010 08:00:00 EST

If a state administrator determines that you have violated New York franchise registration statutes, you may face legal action, including criminal penalties, fines and suspension of your franchise activities. In such a situation, you should immediately get the help of a New York franchise attorney who can talk to you about the nature of your violation.

Actions that can lead to a violation of New York franchise registration statutes include:

failing to register your franchise;
intentionally making an untrue statement of a material fact in your franchise registration application;
intentionally omitting a material fact from your franchise registration application;
failing to make a required pre-sale disclosure; and
failing to notify the administrator in a timely fashion of any material changes in an application or report filed with the state.

If you are suspected of any of the above violations, the state administrator has the power to investigate your franchise activities and impose legal remedies if franchise sales abuses have occurred.

The state administrator may:

conduct an investigation;
enforce franchise regulation statutes;
seek injunctive orders; and
prosecute any criminal activity.

If you plan to franchise in New York, you must be careful not to violate franchise registration statutes. Your New York franchise attorney can advise you through the entire sales process to avoid violations.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business, there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's Franchise Law Report to determine whether or not your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York, and how he assists entrepreneurs franchise their business nationwide.

The Significance of State Franchise Laws

Fri, 08 Oct 2010 08:00:00 EST

If you are starting a franchise in New York, you need to be aware of the state's franchise relationship regulations. These regulations are meant to protect you against franchisor abuse. By understanding how state laws regulate the franchisor/franchisee relationship, you will be able to recognize any franchisor abuse that may arise.

State laws prohibit franchisor abuses such as:

the restriction of free association among franchisees;
the discrimination of franchisees;
management changes without good cause;
encroachment upon the franchisee's exclusive territory; and
litigation or arbitration outside the franchisee's state.

Federal laws, on the other hand, have been established to regulate pre-sale disclosures at the beginning of the franchise process. These regulations on pre-sale disclosures require a franchisor to provide specific information before a brand new franchise is sold. This information must include certain aspects of the business's history, rules on the franchisee's use of intellectual property and an estimation of a franchisee's initial investment costs.

Before starting a franchise in New York, you should talk with a New York franchise lawyer to discuss how the history of franchise relationship regulations will affect your business. A New York franchise lawyer can educate you on the franchise process and represent you should unlawful franchisor abuse occur.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Documents. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs to franchise their business nationwide.

Veteran Franchise Bill to Offer Tax Breaks for Discounted Franchise Fees

Thu, 07 Oct 2010 08:00:00 EST

A bill that was recently introduced to the United States House of Representatives and the Senate is advancing a tax credit that would encourage and reward franchisors for implementing discounts to veterans interested in purchasing a franchise. Presently franchisors participating in VetFran's programs offer discounted fees to veterans.

The bill known as the "Help Veterans Own Franchises Act" has gained the support of over 45 co-sponsors. One incentive associated with the proposed bill relates to tax credits offered to franchisors that, in certain instances, will amount to fifty (50%) percent of the discounted franchise fee. There are caps on the amount of the credit but the bill also offers a potential tax credit to the franchise veteran.

The International Franchise Association ("IFA") says they are backing the bill and have testified twice in the past year for the passing of the bill according to Alisa Harrison, vice president of communications and marketing for the IFA. Harrison also added that "This bill is not about helping veterans find employment. It is about helping them take the skills they gained in the military and applying them in their own business".

The bill currently continues to sit in the House Ways and Means Committee pending information on the impact of its tax credits from the committee members from the administrator of the Small Business Administration and the Secretary of Veteran Affairs.

Tax credits designed to assist and encourage entrepreneurship among veterans represent a well deserved benefit and obligation owed to our veterans. Nevertheless irrespective of discounts and credits the purchase of a franchise requires research and a thorough examination of the franchisor and the overall franchise system. The following articles should provide a good starting point.

Area Development Agreements: Recent Franchise Expansion and Development

Tue, 05 Oct 2010 08:00:00 EST

Franchise Times Magazine reports in its September issue the following area development agreements:

Boardwalk Fresh Burgers & Fries - Multi-unit IHOP franchisee Kal Farah has signed an agreement to develop Boardwalk Fresh Burgers & Fries in Michigan. Boardwalk also reached a deal with Brian and Barbara Rodak to develop the concept in New Jersey.

Seattle's Best Coffee - Opened its first kiosk in New York City. SeattleNY, LLC opened a kiosk in the recently renovated Manhattan Mall.

1-800-GOT-MOLD? - A franchise that uses dogs to detect mold, has awarded a two-state master franchise to the business consulting firm Nelson-Childers. The company will support 22 territories in North and South Carolina.

Jamba Juice - Continued its refranchising efforts. The California-based company sold 25 restaurants in Washington to franchisee Prudence Swann of PB Swann, LLC. Swann will develop two more stores in the Seattle area. Jamba also sold 13 restaurants in Santa Cruz, Temecula and Chico/Redding to various franchisees. And it sold seven restaurants in Las Vegas to multi-concept owner Fine Concepts, which agreed to develop eight more units in the market.

Wendy's/Arby's - Signed a major restaurant development agreement with Wenrus Restaurant Group Limited to develop 180 dual-branded Wendy's and Arby's restaurants in the Russian Federation. In addition, Wendy's/Arby's signed a long-term development agreement with a franchise led by industry veteran Dane Darbasie, who will open 24 Wendy's in 10 years in Trinidad and Tobago and eight other markets.

Nature's Table Café - Dhvani Vyas has signed a franchise deal to open the first Nature's Table Café in the Washington DC market. Vyas is a Subway franchisee who also owns his own concept, Aromi d' Italia Café.

Saladworks - Pennsylvania-based salad chain Saladworks has reached a deal with Baldev and Unmesh Patel to develop three locations in Wake County, North Carolina. The first unit should open next year.

Tasti D-Lite - Inked three development agreements to open 65 locations in various markets. Francisco Gomez-Palacio plans to open 25 units in Dallas and Tarrant Counties over the next 10 years. Aliza Elazar-Higuchi will open 15 units in Clark and Nye counties in Nevada. And Ben Pascal will open 25 units in Maryland, Washington D.C. and Delaware.

Buffalo Wild Wings/Smashburger - PhaseNext Hospitality, a multi-concept developer that specializes in non-traditional locations, announced that it is opening Buffalo Wild Wings and Smashburger at the Fort Bliss military installation in El Paso, Texas. The company previously announced plans to open 12Corner Bakery Cafes over the next 5 years in various locations.

Red Mango - The fast-growing yogurt retailer, announced a three-store deal in Louisiana with Mark Graffagnini. The first store is slated to open in the fall.

If you are a franchisor interested in evaluating your options when it comes to "Multi-Unit Expansion and Development" in Charles N. Internicola's article "Multi-Unit Franchise Expansion: Area Developers, Area Representatives and a Word of Caution". Mr. Internicola identifies and discusses the differences between "Area Development Agreements", "Area Representative Agreements " and "Master Franchise Agreements".

A Brief History of Franchise Relationship Laws

Tue, 05 Oct 2010 08:00:00 EST

If you are starting a franchise in New York, you may want to familiarize yourself with the history of franchise relationship laws.

The earliest federal franchise registration and relationship laws were established in the 1970s. The first substantial federal regulation was the Federal Trade Commission (FTC) rule, which became effective in 1979. This law was established to require pre-sale disclosures at the beginning of the franchise process. It's important to note that the FTC rule does not regulate the franchise relationship, such as the termination, renewal or assignment of a business franchise.

Although federal laws failed to regulate the franchise relationship, state laws were enacted to prevent widespread franchisor abuse. The first state law which governed franchise registration and disclosure was the California Franchise Investments Law, established in 1970.

Afterward, other states began to enact franchise regulations, which were chiefly meant to protect franchisees against:

unjust terminations;
denial of renewal rights;
denial of the right to assign a franchise;
denial of territorial rights;
restriction of free association between franchisees;
discrimination between franchisees; and
pressure to meet unreasonable performance standards.

Nowadays, there are strict franchise regulations at the state and federal levels. If you are starting a franchise in New York, and you need help understanding the history of franchise regulations which will affect your business, you can consult an experienced New York franchise lawyer.

Contacting a New York Franchise Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Documents. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's, franchise law report to determine whether your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs to franchise their business nationwide.

Buying a Franchise: Step 1 - Research the Franchise Opportunity

Fri, 01 Oct 2010 08:00:00 EST

The Franchise King raises some excellent points for prospective franchisees involving the thought process and "sequence of steps" that franchisees must undertake when making a franchise investment and evaluating franchise litigation. While the Franchise King provides prospective franchisees with solid advice respecting the significant role of engaging an experienced franchise lawyer to review your franchise agreement, he also offers the critical and practical advice that prior to hiring any attorney or making any commitment, a prospective franchisee must undertake his or her own "business" due diligence respecting the franchise opportunity being considered. So, before buying a franchise:

    Step 1:   "Do your research on the franchise or franchises that you're thinking of buying"

    Step 2: After you have completed your business due diligence, hire an experienced franchise lawyer to evaluate and review your franchise agreements;

    Step 3: After you have completed steps 1 and 2 then, and only then, should you consider signing the franchise agreement. Keep in mind that, sometimes, the best decision may be to walk away from a proposed transaction. There are many franchise opportunities out there - find the solid   investment and be circumspect of all others.

The Franchise King offers some excellent advice about researching a franchise investment. What is my position about the role of a franchise lawyer and the timing of the due diligence process? Business Due diligence First, Legal Due Diligence Second and Final Decision Third.

Domain Name Dispute: When Someone Steals Your Domain Name

Sun, 26 Sep 2010 08:00:00 EST

Since the advent of the Internet, it has become increasingly important for business owners to get the domain names they want. This is especially true if a domain name is similar to their federally registered trademark. But registering a trademark does not mean that you have registered the domain name.

To register a domain name, you must use a domain name registrar. By registering a domain name that corresponds with your federally registered trademark, you can further establish your business presence. But if someone has already registered a domain name that corresponds to your trademark in New York, you may have to fight for your right to that registered domain name.

Fortunately, there are specific regulations that relate to your rights to Internet trademarks. In fact, there is a law that makes it easier for you to take possession of a domain name that is similar to your trademark. This is known as the Anticybersquatting Consumer Protection Act.

To take possession of a domain name under the Anticybersquatting Consumer Protection Act, you may have to take your case to court. At this point, you and your business interests are best served by getting the professional help of a New York trademark lawyer.

If you own the rights to a trademark in New York, you may also be entitled to the Internet trademark rights, possibly extending to any similar domain name. To find out more about your rights to Internet trademarks, speak to an experienced New York trademark lawyer.

Contacting a New York Trademark Lawyer

If you are an entrepreneur interested in franchising your business there is much you need to know, including the importance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York, and how he assists entrepreneurs to franchise their business nationwide.

Franchise Expansion in the Restaurant Industry: Reports Point to Growth

Sat, 25 Sep 2010 08:00:00 EST

A recent article posted on NACS Online, Restaurants Pursue Growth through Franchising, explains a new report from foodservice consultant Technomic. In the report Technomic claims that more restaurant chains are now considering franchising as a primary source for growth.

As an advocate of the benefits of franchising these industry growth trends make sense. However, franchising is not right for every business and the goal of franchising should not be focused on "Franchise Fee" revenues. Growth should be based on sustainable expansion that benefits both Franchisor and Franchisee. Before "starting a Franchise" I strongly suggest that you review and answer the following 4 questions.

Franchise Agreement Review Period: 7 Days for Material Franchise Agreement Changes

Fri, 24 Sep 2010 08:00:00 EST

Franchise agreements are binding and, once signed, will present long-term implications for both your business and family. If you are considering the purchase of a Franchise and you are involved in the negotiation of a Franchise Agreement , then here are some basic "ground rules" that you should be aware of respecting the delivery of the Franchisors FDD:

Prior to accepting any deposit or negotiating the purchase of a Franchise, as a prospective Franchisee, the Franchisor must provide you with a current copy of the Franchisor's Franchise Disclosure Document (FDD). The FDD must be delivered at least 14 days prior to your payment of any fee or signing any deposit. However, when negotiating changes to your Franchise Agreement especially changes driven by the Franchisor, be aware that under the Federal Franchise Rule, franchisors are required to provide prospective franchisees with a mandatory seven (7) day period to review the revised franchise agreement. The additional seven (7) day review period is geared toward "material changes" and not administrative "fill in the blank" type changes involving things such as dates and names.

Does my trademark give me the rights to the domain name?

Fri, 24 Sep 2010 08:00:00 EST

If you own the rights to a federally registered trademark, those rights may pertain to an Internet domain name. In 1999, Congress passed the Anticybersquatting Consumer Protection Act, which makes it easier for a trademark owner to take possession of a similar domain name, provided they can show that the domain name was registered in bad faith.

To demonstrate bad faith in a domain name dispute, you can show that the owner of the domain name:

has violated your rights to a federally registered trademark;
is violating your trademark rights by using the name in connection with the sale of goods or services;
has offered to sell you the domain name for financial gain; or
has previously registered and offered domain names without intending to use them in connection with goods or services.

You can also show that your federally registered trademark is famous and/or distinctive. To file a domain name dispute over your federally registered trademark, you can get the professional help of a New York trademark attorney.

If you own the rights to a trademark in New York, you may be entitled to the Internet trademark rights, extending to any similar domain name. To find out more about your rights to Internet trademarks, speak to an experienced New York trademark attorney.

Contacting a New York Trademark Attorney

If you are an entrepreneur interested in franchising your business, there is much you need to know, including the importance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York, and how he assists entrepreneurs to franchise their business nationwide.

Alternate Methods for "Delivering" your FDD to Prospective Franchisees

Thu, 23 Sep 2010 08:00:00 EST

Critically important to every Franchisor is a compliance program and internal systems designed to insure that a current (and registered, if applicable) copy of your FDD is delivered to the prospective Franchisee. Although state Franchise laws vary and deviate from the Federal Franchise Rule, Franchisors should evaluate and consider with its Franchise lawyer, the following methods for FDD Delivery:

Direct Delivery: A copy of the FDD was hand-delivered, faxed, email, or otherwise delivered to the prospective franchisee by the required date;
Internet: Directions for accessing the FDD on the Internet were provided to the prospective franchisee by the required date; or
Electronic Copy: A paper or tangible electronic copy (for example, computer disk or CD-ROM) was sent to the address specified by the prospective franchisee by first-class United States mail at least three calendar days before the required date.

How to Find out if a Trademark is Available

Wed, 22 Sep 2010 08:00:00 EST

Before you register a trademark in New York, you must determine whether that mark is available. If your trademark in New York is confusingly similar to a mark that already exists, your trademark registration may be denied. Furthermore, if you use your mark for business, and it conflicts with one that exists, you may face an infringement lawsuit.

Before you register a trademark in New York, search the United States Patent and Trademark Office (USPTO) website. To conduct a more thorough search, you can get the professional help of a New York trademark lawyer.

Once you register a trademark in New York, it will be federally protected under trademark law. No one else can use your mark in connection with goods or services. If someone does use your mark, you can order them to cease and desist from infringement. If they refuse, you can take legal action with an infringement lawsuit.

In a trademark infringement lawsuit, you can obtain an injunction against further infringement. You may also recover your attorney's fees and compensation for damages suffered.

To find out whether your trademark is available, and the steps you can take to protect a registered mark, get the professional help of a New York trademark lawyer. A New York trademark lawyer will also help you determine the strength of your trademark in order to build a nationally recognizable brand.

Contacting a New York Trademark Lawyer

If you are an entrepreneur interested in franchising your business, there is much you need to know, including the importance of evaluating your trademark and how to prepare your FDD. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York, and how he assists entrepreneurs to franchise their business nationwide.

Information for Prospective Franchisors: How "Franchising Sizes-Up" in the Today's Economy

Wed, 22 Sep 2010 08:00:00 EST

When faced with the prospect of expanding your business - I mean really expanding - "Franchising" represents an economic model. While Franchising is not right for every business, statistics demonstrate that the role of Franchising in our economy is one of expansion. The following are some helpful Franchise statistics.

Franchise businesses account for more than 10 percent of all U.S. businesses according to the results of a survey that were released last week. The 2007 Economic Census Franchise Report was the result information collected by the U.S. Census Bureau and the International Franchise Association (IFA) and consisted of information based on 4.3 million businesses with paid employees.

The Census Bureau report not only showed the importance of franchises in the U.S. economy by showing the number of franchises when compared to the number of non-franchised businesses but also revealed the following U.S. franchise statistics:

Franchise businesses account for nearly $1.3 trillion of the $7.7 trillion in total sales

Franchisee-owned establishments account for 77.4 percent of all franchise businesses

Fast-food franchise restaurants account for 125,898 establishments followed by gas stations with convenience stores with 33,391 establishments and full-service restaurants with 30,130 establishments

New car dealers led in sales for franchise businesses with $687.7 billion followed by gas stations with convenience stores with $131.1 billion and fast-food restaurants with $112.6 billion

An interesting fact about the statistics we were provided with by the 2007 Census Bureau report is that the top franchise businesses as far as sales and number of franchise establishments go is that both fast-food restaurants and gas stations with convenience stores made the top three in both of these categories with gas stations with convenience stores coming in second place in both categories.

The Census Bureau report gives a clear picture of just how important franchise businesses are in America. For more information on buying a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" or if you would like more information on franchising a business or becoming a franchisor request a complimentary copy of "The Franchise Formula".

Factors to Consider (and Mistakes to Avoid) When Starting a Franchise or Business

Wed, 22 Sep 2010 08:00:00 EST

In a recent article in the Wall Street Journal, 10 Mistakes That Start-Up Entrepreneurs Make, Rosalind Resnick provides readers with what she believes are the most common mistakes made by start-up entrepreneurs.

Ms. Resnick reports that, in her experience, the following mistakes appear to be "the most common mistakes that start-up entrepreneurs make":

Doing it alone
Asking too many people for advice
Spending too much time on product development, not enough on sales
Targeting too small a market
Entering a market with no distribution partner
Overpaying for customers
Raising too little capital
Raising too much capital
Not having a business plan
Over-thinking your business plan

Although Ms. Resnick acknowledges that some mistakes are inevitable she does remind prospective entrepreneurs (Franchisors and Franchisees) to utilize the extensive books and articles available. According to Rosalind Resnick although there are many books and articles that have been written about entrepreneurship it is unrealistic to start a company without making a few mistakes along the way.

When starting a business or franchise it is critical to arm yourself with the necessary tools and information. If you are considering the purchase of a business or Franchise, find out how to receive a complimentary copy of Charles N. Internicola's "An Entrepreneurs Guide to Purchasing a Business or Franchise". If you are a successful business owner and looking to Franchise your business find out how to receive a complimentary copy of Charles N. Internicola's "Franchise Formula: A Guide to Franchising Your Business in the New Economy".

Importance of Capital to Your New York Franchise

Wed, 22 Sep 2010 08:00:00 EST

If you plan to franchise in New York, the state will require you to meet its franchise capitalization requirements. Because of this, the amount of capital you have is crucial. This means you will have to show that you have enough capital to fund your franchise in New York. You will also have to show you have the capital to provide services and pre-opening support to franchisees.

If you cannot show that you have enough capital to start your franchise and provide services and pre-opening support to franchisees, your New York franchise registration may be denied.

The purpose of franchise capitalization requirements is to prevent undercapitalized franchisors from going into business. To determine your New York franchise capital requirements, the state may assess your minimum capital needs as well as your projected sales estimates.

To estimate your minimum capital needs for your franchise in New York, you can assess your per-unit cost of providing pre-opening and opening services and support to business franchisees, and then multiply that amount by the number of New York franchises that you plan to sell in the next year.

The total will be compared with the capital resources that you report in your financial statements. At the very least, to meet the necessary New York franchise capitalization requirements, your liquid assets must be equal to the amount of capital that you will need.

If you have questions about your New York franchise capitalization requirements, you can get the advice of an experienced New York franchise attorney.

As you plan to franchise in New York, a New York franchise attorney can analyze your capital and determine if you meet the franchise capitalization requirements.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Documents. For a limited time, get New York franchise attorney Charles N. Internicola's franchise law report to determine whether your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Solutions for an Undercapitalized Franchise in New York

Wed, 22 Sep 2010 08:00:00 EST

If you plan to franchise in New York, and your business is undercapitalized, then a state administrator may deny your franchise registration. If this happens, then the solution may be to capitalize your franchise in New York. To secure additional capital that will satisfy your needs, you will have to secure a long-term loan.

Unfortunately, under New York franchise capitalization requirements, a short-term loan will increase your assets as well as your liabilities, and therefore will not improve your working capital. By securing a long-term loan that is not repayable for a minimum of 12 months, you can improve your business capital. This long-term loan can come from an officer or a stakeholder in the New York franchise.

Another solution for your capital needs may be to defer your initial fees. If you agree not to demand the initial fees until your New York franchisees open their business, the state may approve your registration. This will assure that you won't use these initial fees to fund your business before fulfilling your pre-opening obligations.

Other solutions to your New York franchise capitalization needs include:

a guarantee of performance;
a surety bond; or
an informal undertaking.

If you plan to franchise in New York, the state will require you to meet the franchise capitalization requirements. These requirements are to ensure that you have enough money to support your franchisees. A New York franchise attorney can advise you on the franchise capitalization requirements, and what alternative may work for you if your franchise in New York is undercapitalized.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Documents. For a limited time, get New York franchise attorney Charles N. Internicola's franchise law report to determine whether your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Checkers Fast-Food Franchise Opening New Locations in Brooklyn, NY: Factors that Franchisees Should Consider

Tue, 21 Sep 2010 08:00:00 EST

Checkers, a popular fast-food franchise, announced that they will be opening four new locations in Brooklyn, New York.

The multi-unit franchise purchase was made by Kalex Partners which includes the purchase of a location at 491 Nostrand Avenue in Brooklyn which is scheduled to open late this month followed by the opening of three other Checker's stores over the next five years.

It is reported that the Kalex Partners who purchased the four locations qualified for an offer through VetFran and received a discounted franchise fee. This discount is offered to veterans trying to adjust from the military life to civilian life.

When considering an investment in a Franchise it is important to consider (a) the prospect of negotiating and obtaining the right to develop multiple units, (b) obtaining a right of first refusal respecting; and (c) evaluate the significance (and potential warning signs) of a discounted franchise fee. Discounts offered to veterans and through VetFran serve a legitimate and well deserved purpose. However "generic discounts" offered to just push Franchise sales could be a significant warning sign that must be evaluated.

4 Questions to Determine Your Trademark's Strength

Mon, 20 Sep 2010 08:00:00 EST

Before you register a trademark in New York, you should determine the strength of that mark. By gauging the strength, you can choose a mark that best represents your brand.

When choosing a trademark in New York, there are several questions you should ask, including:

What message do I want my trademark to send, and does it effectively send that message?
Is my trademark unique and recognizable?
Can my trademark be used with other goods or services, in case my business expands?
Will my trademark be suitable in other geographic areas, including international markets?

When determining the strength of your trademark in New York, you should get the advice of a New York trademark lawyer. An experienced New York trademark lawyer will have extensive knowledge of U.S. trademark law, as well as what a good mark entails. Once you choose your trademark in New York, a New York trademark lawyer can help you obtain your federal registration.

By federally registering your trademark in New York, you can prevent other businesses from using it to identify their goods or services. If anyone infringes on your federally registered mark, you may take legal action by filing a trademark infringement lawsuit.

If you plan to register a trademark in New York, you should first determine the strength of your mark. This will help you build a nationally recognizable brand. A New York trademark lawyer can help to simplify this process, and represent you well into the future, should any infringement issues arise.

Contacting a New York Trademark Lawyer

If you're an entrepreneur interested in franchising your business, there is much you need to know, including the importance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark lawyer Charles N. Internicola, Esq's Franchise Law Report to determine whether or not your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs to franchise their business nationwide.

What Damages Can I Recover in a Trademark Infringement Lawsuit?

Thu, 16 Sep 2010 08:00:00 EST

If someone has been unlawfully using your federally registered trademark, you may be eligible for damages in a trademark infringement lawsuit. To file a trademark infringement lawsuit, you should get the help of an experienced New York trademark attorney.

An attorney can investigate your infringement case and may be able to help you seek damages for lost business earnings. Your New York trademark attorney has the resources to investigate the nature of the infringement and the extent of the damages in order to construct a comprehensive case.

If the court determines that the infringing party copied your trademark intentionally, or that they should have been aware of your federally registered mark, they may have to give you the profits realized by the use of your protected trademark. In addition, the court may order the infringing party to pay you punitive damages and cover your attorney's fees.

Just like with any property, you have the right to protect your trademark. To find out what you may be entitled to in a trademark infringement lawsuit, you can contact a New York trademark attorney. An attorney will be able to help you file the proper paperwork for a trademark infringement lawsuit, and can analyze the potential business you may have lost.

When to Contact a New York Trademark Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

How Can I Protect My Federally Registered Trademark?

Tue, 14 Sep 2010 08:00:00 EST

If you have federally registered a trademark with the United States Patent and Trademark Office (USPTO), your trademark is automatically protected by U.S. trademark law. The means that anyone who infringes on your trademark must immediately "cease and desist," or in layman's terms, stop using your trademark.

If you need to take action against someone who has infringed upon your trademark, you can get the help of an experienced New York trademark attorney.

The first thing you should do in the case of trademark infringement is to send a letter with a "cease and desist" request. A New York trademark attorney will be well-versed in how to draft a compelling cease and desist letter.

If the offending party refuses to stop using your trademark, your next course of action may be to file a trademark infringement lawsuit.

If a trademark is infringed upon internationally, you must file your lawsuit in a federal court. If your trademark is infringed upon within the United States, you can file your lawsuit in a state court. In any infringement lawsuit, you can obtain a judgment for the offending party to cease and desist from infringement, and you may also recover financial damages in some instances.

If your federally registered trademark has been infringed upon, you have the right to take steps to protect your property. To find out what you may be entitled to in a trademark infringement lawsuit, you can seek the professional advice of a New York trademark attorney.

When to Contact a New York Trademark Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York trademark attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Fee Disclosure: Item 5 of the Franchise Disclosure Document

Sat, 11 Sep 2010 08:00:00 EST

When starting a franchise in New York, you will be required by the Federal Trade Commission (FTC) to disclose specific information. This information must be included in the Franchise Disclosure Document (FDD), which you will be required to provide to potential franchisees. In Item 5 of the FDD, you must disclose the initial fees required to start a new franchise.

If you have questions regarding your franchise disclosures, you can get the professional advice of a New York franchise attorney.

Your Item 5 disclosure will include information about all payments and commitments required to pay for goods and/or services, as well as the standard initial franchise fee.

Item 5 of your FDD will also include information about the necessary payments for:

business inventory;
any software licensing fees;
rent for your site;
any employee and management training that will be provided; and
advertising costs.

Within the FDD, you must also disclose the conditions under which payments or fees may be refunded. If you don't provide this information, you may be found in violation of the FTC's franchise rules. To ensure that you provide the required information, and do so in the required time frame, you can get the help of an experienced New York franchise attorney.

If you plan on starting a franchise in New York, you will need to follow the FTC's franchise rules and guidelines. Learn more about this important aspect of franchising by visiting our article library.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

What Is The Initial Investment (Item 7) In the Franchise Disclosure Document?

Fri, 10 Sep 2010 08:00:00 EST

When making your disclosures in the franchise disclosure document (FDD), Item 7 will include information about the franchisee's initial investment. This should be an estimate of the total amount that a franchisee will have to pay the franchisor in order to commence business. In the FDD, these expenses will be listed in 7 different categories.

If you need assistance with your franchise disclosure document, you can get the professional help of a New York franchise attorney.

The 7 categories of expenses detailed in Item 7 of your FDD include:

the initial franchise fee;
training expenses;
real property whether purchased or leased;
equipment, fixtures, construction, and decorating costs, whether purchased or leased;
initial inventory;
security deposits, business licenses, and other prepaid expenses; and
additional funds required by the franchisee before operations begin and during the initial phase of the franchise business.

According to the Federal Trade Commission (FTC), these disclosures must be in chart form and include information regarding:

to whom the payments are made;
when the payments are due;
whether each payment is refundable; and
whether any portion of the initial investment may be financed.

A New York franchise attorney can assist you with the provision of these disclosures.

You can learn more about the requirements for a franchise disclosure document (FDD), by visiting our article library.

How Can a New York franchise Attorney Help?

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. For more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide, contact us today at 1-800-976-4904.

The FTC's New Rule For Starting a Franchise in New York

Thu, 09 Sep 2010 08:00:00 EST

When starting a franchise in New York, you will be required to abide by the Federal Trade Commission's (FTC) New Rule. The New Rule establishes guidelines for starting a new franchise, as well as for the franchise disclosure process. This includes strict rules regarding the provision of a Franchise Disclosure Document (FDD).

If you have questions regarding the FTC's New Rule, or for assistance with the disclosure process, you can get the help of an experienced New York Franchise attorney.

The New Rule outlines required procedures such as the timing and delivery of franchise disclosures, and the contents of the FDD.

The contents of the FDD must include information such as:

Your company's business and litigation history;
An estimate of the initial investment of the franchisee, including franchise fees, financing, and the necessary goods and/or services; and
The franchisee's obligations, such as site maintenance, contributions toward advertising costs, and the use of intellectual property.

These are only a few of the FTC's franchise disclosure requirements. In fact, there are 23 items which must be listed within the FDD and each item must be provided according to the FTC's guidelines.

To learn more about the required guidelines, or to get help drawing up your Franchise Disclosure Document, you can get the professional help of a New York franchise lawyer. In the meantime, you can learn more about the FTC's franchise rules and guidelines by visiting our article library.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

What Are the Territory Rights Described in a Franchise Disclosure Document?

Wed, 08 Sep 2010 08:00:00 EST

In a franchise disclosure document (FDD), Item 12 of the disclosures will provide a description of the franchisee's territorial rights. In Item 12, the franchisor must describe:

Any territory rights granted to the franchisee, including any exclusive territory within which the franchisor will not compete or franchise others;
The franchisee's rights to relocate or acquire additional outlets or areas;
Any development obligations or sales quotas the franchisee is required to meet; and
Your competitive franchise program, and how conflicts between franchisees regarding territory, customers, or franchisor support will be resolved.

Franchisors who do not grant exclusive territories must include the following mandatory warning in Item 12:

"You will not receive an exclusive territory. You may face competition from other franchises, from outlets that we own, or from other channels of distribution or competitive brands that we control."

There are other disclosures required by Item 12 as well. To know exactly what you must disclose within your franchise disclosure document, you can get the professional advice of a New York franchise attorney. An experienced New York franchise attorney can also ensure that you provide all of the necessary disclosures and in a timely manner.

You can learn more about the requirements for a franchise disclosure document (FDD), by visiting our article library.

How can a New York franchise attorney help?

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

General Rules to Follow When Drawing Up Your FDD

Thu, 02 Sep 2010 08:00:00 EST

When drawing up your Franchise Disclosure Document (FDD) in New York, there are certain writing guidelines that are required by the Federal Trade Commission (FTC). These guidelines state that your FDD must be written in plain English, using short sentences, and in the active voice. This is required so that someone who is unfamiliar with the franchise business will be able to easily comprehend all of the various aspects of the business plan.

Furthermore, the FDD must not contain complicated legal jargon that is hard to understand, nor should it include highly technical terms. You should also use charts or graphs wherever they may apply.

On the cover page of your Franchise Disclosure Document, you must include specific information such as:

a sample of the primary trademark for the franchise;
a brief description of the franchise business;
the initial fees and total initial investment that will be required to start the franchise;
an explanation of the 14-day delivery period; and
optional contact information for a prospective franchisee to obtain the FDD in different format.

When drawing up your FDD, it may prove beneficial to get the help of an experienced franchise professional. To do so, you should contact an experienced New York franchise attorney. An experienced attorney can help you throughout the Franchise Disclosure Process.

If you plan on starting a franchise in New York, you will be required to provide potential franchisees with a Franchise Disclosure Document (FDD). Learn more about the FDD, including the 4 basic components required, by visiting our article library.

How can a New York franchise attorney help?

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

What Information Must I Provide in a Franchise Disclosure Document?

Wed, 01 Sep 2010 08:00:00 EST

When starting a franchise in New York, the Federal Trade Commission (FTC) requires that you provide specific information in a Franchise Disclosure Document (FDD). This information must be provided to potential franchisees so that they can make an educated decision as to whether or not to invest. According to the FTC, there are 4 areas of basic information which must be clearly detailed in the FDD.

In the FDD, the 4 key subjects should include information about the franchisor, the franchise system, the franchisee's business, and the franchise agreement. This will help to inform prospects about your franchise business.

Some of the required information in the FDD will include:

the franchisor's financial statements;
the franchisor's bankruptcy and litigation history;
advertising and training programs;
how much of an initial investment the franchisee will have to make;
restrictions on the sales of products and/or services;
the required initial and ongoing fees;
territorial rights and competition; and
the franchisee's use of trademarks, copyrights, and other intellectual property.

There are also specific guidelines regarding how the FDD should be written. For professional help with your FDD, you can contact an experienced New York franchise attorney. An attorney can assist you with the process of drawing up your Franchise Disclosure Document and help you to avoid costly mistakes often associated with preparing an FDD.

If you plan on starting a franchise in New York, you will be required to provide potential franchisees with a Franchise Disclosure Document, which you can read more about in our article library.

How can a New York franchise attorney help?

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

What is Trademark Goodwill?

Sun, 29 Aug 2010 08:00:00 EST

When a federally registered trademark is associated with your business, the reputation of that trademark is essentially known as its goodwill. When a trademark is federally registered, this goodwill is protected by the United States Patent and Trademark Office (USPTO). This nationwide protection is the primary benefit of a federally registered trademark.

To register a trademark, you can submit an application on the USPTO website, via the Trademark Electronic Application System (TEAS). You can also use TEAS to respond to an action by the examining attorney, or to make a change to your federally registered trademark.

If your trademark is infringed upon, you can protect it by filing a trademark infringement lawsuit. In such a lawsuit, a judge may order the defendant to cease and desist from using your trademark. Furthermore, if your trademark's goodwill was damaged as a result of the infringement, you may be eligible for compensation. To get a more personalized explanation of the steps you must take to protect your federally registered trademark, you can get the professional advice of a New York business lawyer.

A New York business lawyer can issue a letter to "cease and desist" from infringing upon your federally registered trademark, and, if necessary, file a trademark infringement lawsuit in the proper court of law.

If you plan on doing business in New York, you may want to know about the value of registered trademarks. Visit our article library where you can find more information about trademark value and goodwill.

If you are an entrepreneur who is interested in franchising your business, there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Federal Disclosure Documents (FDD). For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

What Terms Must I Include in the Uniform Franchise Offering Circular (UFOC)?

Fri, 27 Aug 2010 08:00:00 EST

When selling franchises in New York, you will be required to provide potential franchisees with a Franchise Disclosure Document (FDD), which is also commonly known by its former name, the Uniform Franchise Offering Circular (UFOC). This document will establish the terms of your relationship with the business franchisee. Some of the terms that you will need to provide in the FDD/UFOC include:

Any required fees (such as the initial franchise fees, any ongoing royalty fees, and any required advertising fees);
An estimate of the franchisees initial investment. According to the Federal Trade Commission (FTC), this must be provided in chart form;
The franchisee's obligations (such as the maintenance of their franchise location, and the use of your trademarks, patents, and federally registered intellectual property);
The franchisor's obligations (such as the assistance you will provide in selecting a site, the hiring and training of employees, and any company-wide advertising activities);
Restrictions on what product and/or services a franchisee may or may not sell; and
The rules on the renewal, termination, or transfer of a franchise.

If you need help to establish the terms which are required in the FDD/UFOC, you can get the advice of an experienced New York franchise attorney. A New York franchise attorney can help you though every step of the franchising process and help you to avoid the most common pitfalls in establishing the FDD/UFOC.

If you plan on selling franchises in New York, visit our article library to learn more about the required terms of a franchise.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD/UFOC. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

How Do I License the Rights to My Federally Registered Trademark?

Fri, 27 Aug 2010 08:00:00 EST

If you plan on selling franchises in New York, you will probably want to license the rights to your federally registered trademarks. By licensing these rights, you will allow your franchisees to use your trademarks in connection with their goods and services. To draft your trademark licensing agreement, you can get the professional help of a New York business lawyer.

When you write your licensing agreement, you can also establish the terms of use for your federally registered trademarks. For instance, you can prohibit the use of your trademark in some business practices, while mandating their use in others. This will allow you to maintain complete control over your federally registered trademark.

If, however, a business franchisee violates the terms of your licensing agreement, you may take legal action in response to the violation. For instance, if a franchise uses your business name to sell unauthorized products or services, this may result in a violation of your licensing agreement. Therefore, your response may be to file a trademark infringement lawsuit.

To file a lawsuit, you have the option of seeking the help of a New York business lawyer. A lawyer may do what it takes to protect your federally registered trademark.

When launching a business or franchise in New York, it is important to understand the relationship between your trademark value and goodwill. Visit our article library to read more about this topic.

If you are an entrepreneur who is interested in franchising your business, there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Federal Disclosure Documents (FDD). For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs in franchising their business nationwide.

What is the Uniform Franchise Offering Circular (UFOC)?

Thu, 26 Aug 2010 08:00:00 EST

If you plan to sell franchises in New York, you will need to provide potential franchisees with a Uniform Franchise Offering Circular (UFOC). This document will provide the terms and information that is required by the Federal Trade Commission (FTC). These terms, which will be comprised of 3 parts, are meant to inform the franchisee about your business franchise program.

In the first part of the UFOC, you will need to describe the franchise program. This will include franchise fees and other applicable fees, trademark licensing, and territorial protection.

In the second part of the UFOC, you will need to include your audited financial statements.

In the final section of the UFOC, you will need to include one copy of each of the forms and/or contracts that are necessary to the franchise process.

As part of the UFOC, you must provide information about the initial investment that a franchisee must make. This will help prospective franchisees to plan their budgets and their financing and also to determine if this is a mutually feasible financial option.

If you have questions about what is required in the UFOC, or about how to organize the terms of your UFOC, you can consult a New York franchise attorney who is familiar with the requirements of a well-structured UFOC. A New York franchise attorney can help you:

Establish a royalty payment plan;
Structure the terms of your trademark license; and
Establish the franchisee's obligations.

If you plan on selling franchises in New York, you will have to take the time to carefully figure out the terms of your franchise. To learn more, visit our article library and contact a New York franchise attorney.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your UFOC. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Healthy Fast Food Announces SBA Franchise Registry Listing Approval for U-SWIRL Yogurt Franchise

Wed, 25 Aug 2010 08:00:00 EST

Healthy Fast Food recently announced the SBA franchise registry listing approval for U-SWIRL Frozen Yogurt ®. Healthy Fast Food is the owner and franchisor of the fairly new franchise U-SWIRL Frozen Yogurt.

Becoming an approved franchise on the SBA Franchise Registry List means that U-SWIRL Frozen Yogurt has now been added to a compilation of franchise systems that have had their franchise agreement reviewed by the SBA. Being an approved registry listing with the SBA allows investors in the U-SWIRL Frozen Yogurt franchise to have the loan process expedited while also ensuring a consistent eligibility decision.

According to Rico Conte, Vice President of Franchise Development at Healthy Fast Food, the approval for SBA franchise registry listing is just another step they are taking to simplify the process of ownership for current and prospective franchisees of U-SWIRL Frozen Yogurt.

From a franchisees perspective the "availability of financing" is one of many factors to evaluate. If you are considering the purchase of a franchise, it is critical that you conduct your "due diligence" and contact existing franchisees. For more information about buying a franchise you may request a complimentary copy of Charles N. Internicola's book "An Entrepreneurs Guide to Purchasing a Business or Franchise".

What Is The Lanham Act?

Fri, 20 Aug 2010 08:00:00 EST

When starting a franchise in New York, it is important to regulate the use of your trademarks through the language in your licensing agreement. This allows you to control a franchisee's use of your registered trademarks. The Lanham Act is what allows this use, but only when you exercise sufficient quality control over your trademarks.

According to the Lanham Act, a trademark owner-in order to allow someone to license their registered trademark(s)-must exercise control over the nature and quality of goods or services associated with the registered trademark.

In other words, in order for you to have a licensing agreement with a business franchisee, you must oversee the business activity of the franchisee. You must exercise control over:

The products and/or services that a franchisee provides; and
The use of your trademarks in association with your business's products and/or services.

If you fail to do so, you may lose your trademark rights due to a violation of the Lanham Act. Under the Lanham Act, quality control is mandatory when maintaining a licensing agreement.

If you have questions regarding your licensing agreement, or about your responsibilities under the Lanham Act, you can get the advice of a New York franchise lawyer.

If you plan on starting a franchise in New York, you will need to protect your trademarks and regulate their use. To learn more about the relationship between trademark licensing and franchises, visit our article library.

How a New York Franchise Lawyer Can Help

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Achieving Continuity in Your Franchise Agreements

Fri, 20 Aug 2010 08:00:00 EST

For start-up and established Franchisors alike, achieving uniformity among your Franchise agreements and Franchise relationships constitutes a critical role. So what is the best way to achieve this uniformity: refine and structure your Franchise agreements to achieve a "balanced" approach to issues typically of concern to prospective Franchisees. Some issues to focus on, include:

The method for calculating royalties where your royalty structure is based on metrics/criteria that are independent of the Franchisees gross sales;
The method for proscribing and defining the Franchisees "protected territory", if any;
The method for Franchisees to obtain "franchise fee" discounts when purchasing the rights to multiple Franchise unity.

Open ended Franchise agreements, while tempting, typically create or give rise to "real world" situations that may create unnecessary litigation risk.

Some Franchise System "Characteristics" to Consider When Buying a Franchise

Fri, 20 Aug 2010 08:00:00 EST

If you are considering the Purchase of a Franchise you need to clearly identify and understand the benefit of becoming a Franchisee. As with every business decision and opportunity there are "benefits" and "risks". Typically one motivation for becoming a Franchisee relates to the perceived benefit that you will be investing in a "tested" and "proven" business concept. However not all Franchise systems are "tested" nor "proven". So, before investing in a Franchise you must do your research.

When evaluating potential Franchise opportunities some "Franchisor Characteristics" to evaluate and consider, include:

Whether or not the Franchisors business concept and business plan is clearly identified;
The Franchisors commitment to the Franchisee;
Whether or not the Franchisors trademarks are developed and recognized in the marketplace;
Whether or not existing Franchisees are satisfied and profitable.

For more information on buying a franchise receive a copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" written by Franchise Lawyer Charles N Internicola, Esq.

What is a Common Law Trade Name?

Thu, 19 Aug 2010 08:00:00 EST

In the United States, a business may protect its name by registering it with the United States Patent and Trademark Office (USPTO). This will prevent every other business in the U.S. from using that particular name. However, there are laws that state that if another business first used that name in commerce, the business which used it first may have the exclusive rights to that name.

According to these common law rights, the first one to use a trade name may acquire exclusive protectable rights in the geographic area in which the first user's trademark is well known. These rights may also apply in areas of natural or probable expansion. Even if the same (or a similar) trademark is submitted in the federal registration process, the first user's rights may take precedent over the federal registration.

Therefore, just because you conduct a thorough search before you begin the registration process, does not mean that you will be guaranteed the rights of your registered name. However, it is still best to conduct a thorough search of existing names to avoid any foreseeable conflicts beforehand.

If your trade name creates a conflict due to this common law, it may lead to a legal battle. If so, a New York business lawyer may be able to help you fight your case.

If you plan on starting a franchise in New York, you need to protect your business's name. To do so, you can register the name with the USPTO. To learn more about trade names, please visit our article library.

How a New York Business Lawyer Can Help

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York business lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

How Can I Control My Franchisee's Use of Trademarks?

Thu, 19 Aug 2010 08:00:00 EST

If you want to control a franchisee's use of your company's trademark(s), you must put specific language into your franchise agreement. This part of your franchise agreement may be called the licensing agreement.

In the licensing agreement, which can be written by a New York franchise lawyer, you can:

Mandate a franchisee's use of colors, symbols, or various trademarked images;
List the ways a franchisee may not use a trademark;
Regulate the trademark by including specifications which franchisees must adhere to; and
Control a franchisee's use of your trademark in any of their marketing materials.

Once these rules have been agreed to, you must be sure to see them through. If you do not ensure that franchisees follow the terms of the licensing agreement, you may be held liable for any related impropriety or misuse of your intellectual property. In other words, if you do not enforce the rules in the agreement, it will hold no legal merit.

Therefore, if a licensee abuses the use of your trademarks, while providing unauthorized products or services, you may be held liable for this activity. To enforce your licensing agreement, you can get the legal help of a New York franchise lawyer.

If you plan on starting a franchise in New York, you need to protect your trademarks and regulate their use. To learn more about the relationship between trademark licensing and franchises, visit our article library.

How a New York Franchise Attorney Can Help

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

The Importance of Registering Your Trade Name

Wed, 18 Aug 2010 08:00:00 EST

In the United States, there are laws that will protect a business's intellectual property. This includes protecting the name of the business, so that no other businesses in the United States can use that particular name. Once your trade name is registered with the United States Patent and Trademark Office (USPTO), it will be considered the exclusive property of you or your business, and anyone else who uses it may be punished according to the law.

To have your trade name protected by the USPTO, you will need to complete a registration process. To initiate this process, you can submit a form via the USPTO website. With this you will need to pay an application fee. However, before submitting your trade name for registration, it is important to conduct a thorough search of trade names that have already been registered.

To conduct this search, you can review the trade names on the USPTO website. But this simple search may not turn up every existing trade name. The best thing to do, if you want to own your trade name, is to hire a New York business lawyer. A New York business lawyer can conduct a thorough search with the USPTO as well as state registration searches which may turn up local businesses with a similar trade name.

If you plan on starting a franchise in New York, you need to protect your business's name. To do so, you can register the name with the USPTO. To learn more about trade names, please visit our article library.

How a New York Business Lawyer Can Help

A New York business lawyer can help you conduct a thorough trade name search. If there is a conflict with your business name, then you may have to take your case to court.

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York business lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Ensuring Receipt of Your Franchise Disclosure Documents

Fri, 13 Aug 2010 08:00:00 EST

When you deliver a Franchise Disclosure Document (FDD) to a prospective franchisee, you'll want to ensure that the document was received. This is true whether you deliver the FDD as a hard copy, or if you deliver it in electronic form. To ensure receipt, you will need to get a signature of receipt from the prospective franchisee.

It is also important that you deliver the FDD to the right people such as:

Each individual franchisee
A principal officer of a corporate franchisee
The managing general partner of a partnership
The manager of a limited liability company

Upon delivery of the FDD, you should document the following information:

The date the FDD was received;
The date any addendum to the FDD was received;
The date that completed copies of all agreements to be executed were received by the prospect;
The date that the first agreement was received by the prospect and
The earliest date a check, cash, or other consideration was delivered by the prospect to a representative of the franchisor, and the name of that individual.

With proper documentation, you can protect yourself in disclosure disputes with prospective franchisees.

If you are selling franchises in New York, then it is important that you document the disclosure process. To learn more about the franchise disclosure process, please visit our article library.

How a New York Franchise Attorney Can Help

A New York franchise attorney can help you throughout the disclosure process. By hiring an experienced attorney, you can avoid the potential missteps of delivering your Franchise Disclosure Document.

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD.

For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

How Do I Update an FDD?

Thu, 12 Aug 2010 08:00:00 EST

To submit an annual update of a Financial Disclosure Document (FDD), you must make it available for use (with the updated addenda) within 120 days after your business's fiscal year-end.

In order to make interim amendments for material changes, such as contract changes, fee changes, or the addition of new personnel, you must "promptly" file a post-effective amendment with the addendum or revised pages. Furthermore, you are required by the state to stop marketing activities until the amendment is approved (unless the state has approved interim sales). While it is not necessary to update the entire FDD to reflect a material change, all material changes should be made.

If in an interim change, the amendment is a company-wide standard, you may want to use a standard addendum to reflect the company's change. If the negotiated change was made under unique circumstances (so that it is highly unlikely that the change will be made again) you may not be required to reflect the change in an interim amendment.

To know whether an interim change is necessary, or to ensure that you submit your annual FDD on time, you can get the professional help of a New York franchise attorney.

If you are selling franchises in New York, it is important that you update your FDD according to New York law. To learn more about updating your FDD, visit our article library.

How a New York Franchise Attorney Can Help

A New York franchise attorney can help you throughout the disclosure process. By hiring an experienced attorney, you can avoid potential mistakes when delivering your FDD.

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Delivering a Franchise Disclosure Document (FDD)

Thu, 12 Aug 2010 08:00:00 EST

When you deliver a Franchise Disclosure Document (FDD) to a prospective franchisee, you can either have a hard copy delivered by hand, or you can deliver it in electronic format. To deliver an FDD in electronic format, you can send it by email, or have your prospective franchisee access it via the Internet.

If you provide the FDD in electronic format, then the prospect must be able to download, store, print, or otherwise maintain the FDD. However, there are several rules that prohibit what you may include in the electronic format.

An FDD in electronic format may not include:

External links that will redirect the prospect away from the original document
Any audio or visual features
Pop-ups
Any other form of advertising messages

Once you deliver the FDD, you should make sure that you receive a receipt of delivery. This will help you in case of any disputes about the disclosure process. Many companies choose to document the franchisor disclosure process. This may be done by videotaping an interview with a prospective franchisee, while others have a written certificate signed by the prospect.

For more information and legal advice, you can get the professional help of a New York franchise attorney.

If you are selling franchises in New York, then it is important that you document the disclosure process. To learn more about the franchise disclosure process, please visit our article library.

How a New York Franchise Attorney Can Help

A New York franchise attorney can help you throughout the disclosure process. By hiring an experienced attorney, you can avoid the potential missteps of delivering your Franchise Disclosure Document (FDD).

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD.

For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

What Kind Of Updates Do I Need To Make To an FDD?

Wed, 11 Aug 2010 08:00:00 EST

There are various updates that can be made to a Franchise Disclosure Document (FDD). Some of these updates may be voluntary, while others are required. For instance, it is required that you update your FDD at the end of every fiscal year.

For your annual updates, you should provide information such as:

Financial performance representations to reflect the company's current data;
Any contract amendments; and
Initial investment estimates verified against the recent experiences of franchisees.

These annual updates must be filed within 120 days after your business' fiscal year-end. To know exactly what is required for your annual updates, you can get consult an experienced New York franchise lawyer.

On the other hand, you may make changes to your FDD throughout the fiscal year. These interim changes may be voluntary or involuntary. A voluntary change may be a contract change or a change in fees. An involuntary change may be new litigation, a financial decline, or the loss of franchisees. However, any changes that may materially affect a prospect must be amended in the FDD.

To properly amend your FDD, and make it available on time, you can get the professional help of a New York franchise lawyer.

If you are selling franchises in New York, it is important that you update your FDD according to New York law. To learn more, about making changes to your FDD, visit our article library.

How a New York Franchise Attorney Can Help

A New York franchise attorney can help you throughout the disclosure process. By hiring an experienced attorney, you can avoid potential mistakes when delivering your Franchise Disclosure Document.

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Release of Second Edition of Charles Internicola's Book

Fri, 06 Aug 2010 08:00:00 EST

Release Date: June 2010

Drawing on the success of his original book, Charles N. Internicola, Esq. has released for publication the "Second Edition" of "An Entrepreneurs Guide to Purchasing a Business or Franchise". In this "second edition" Mr. Internicola tackles issues and concerns faced by business purchasers and individuals considering the purchase of a franchise. Focused on empowering business purchasers and franchisees, the book contains detailed and practical information about business and franchise transactions.

Table of Contents:
i. Introduction
ii. Five Myths that are Wrong and Must be Ignored when Buying a Business or Franchise
iii. Franchise Factors: A General Overview of Franchise Transactions
1. What is a Business?
2. Due Diligence and the Timing of the Due Diligence Process
3. Tangible Assets: Due Diligence Factors to Consider
4. Property Interests and Rights: Due Diligence Factors to Consider
5. Goodwill: Due Diligence Factors to Consider
6. The Nature of the Transaction: Asset Purchase verses Stock Purchase
7. An Overview of the Transaction: The Asset Purchase Agreement
8. Five Mistakes that Will (Almost) Guarantee a Problem after your Business Purchase Closes
9. Conclusion
Supplement

Publisher: Word Association Publishers
ISBN: 978-1-59571-553-1

Avvo Awards Charles Internicola "Superb" (10/10) Attorney Ranking

Fri, 06 Aug 2010 08:00:00 EST

Release: August 6, 2010

Charles N. Internicola was recently rated "Superb" by AVVO, a national lawyer rating service. Internicola is a business and franchise lawyer with a legal practice focused on the representation of entrepreneurs and corporate clients in franchise transactions, business transactions and commercial litigation. He received a perfect "10" rating based upon his experience, education and industry recognition.

Internicola is the author of "An Entrepreneurs Guide to Purchasing a Business or Franchise" and he is the publisher of the New York "Franchise Law Blog".

Charles Nicholas Internicola

View lawyer's profile

Franchises Focused on "Franchisee Satisfaction"?

Fri, 06 Aug 2010 08:00:00 EST

Franchisee Satisfaction is a key component and characteristic of "successful" Franchise Systems. In fact on many occasions I have strongly argued that Franchisors should focus on creating and refining systems that not only create "satisfied franchisees" but, rather, franchisees that are "raving fans". Franchisees that are "raving fans" create customers who are "raving fans". Franchise Systems with "raving fans" are successful systems.

In a recent 2010 study of "Franchisee Satisfaction" the Franchise Research Institute has identified the following Franchise Systems as excelling in franchise satisfaction.

1. Name of Franchise: BrightStar
     Type of Franchise: Home Care Franchise
     Liquid Capital Required: $100,000
2. Name of Franchise: Comfort Keepers
     Type of Franchise: Senior Care Franchise
     Liquid Capital Required: $57,000
3. Name of Franchise: Express Employment Professionals
     Type of Franchise: Job Placement Franchise
     Liquid Capital Required: $100,000 - $175,000
4. Name of Franchise: The Goddard School
     Type of Franchise: Day Care Center Franchise
     Liquid Capital Required: $140,000
5. Name of Franchise: Re-Bath
     Type of Franchise: Home Improvement Franchise
     Liquid Capital Required: $25,000

When evaluating studies there are many variables, so while I cannot attest to the results of this study, I do know one thing: Franchisors and Franchise Systems require satisfied Franchisees for profitability and growth. Franchisors must evaluate their systems from this prospective.

New York State Requirements When Franchising a Business

Thu, 05 Aug 2010 08:00:00 EST

If you plan to sell a New York franchise, the state requires that you provide a pre-sale disclosure to potential franchisees. This disclosure, which was previously known as a Uniform Franchise Offering Circular (UFOC), has been renamed and is now known as a Franchise Disclosure Document (FDD).

The FDD will disclose financial information that is required by the state, as well as some facts about your company's history. New York prohibits the sale of franchises until an FDD has been filed on public record and registered by a designated state agency. This gives franchisees the legal right to bring a private lawsuit against you for omitting or misrepresenting any information that is required in the FDD.

You are permitted to have an initial meeting with a potential franchisee without presenting the FDD, however, the FDD must be presented at least 14 calendar days prior to signing a formal contract. This gives the franchisee time to peruse your company's disclosures.

If the information provided within the FDD is acceptable to the franchisee, you may proceed to provide them with a franchise agreement, in which you will establish the terms of your business relationship.

To understand what is required in starting a New York franchise, or for help with drafting your FDD, you can get the professional help of a Manhattan business attorney.

If you are interested in franchising your business in New York, you probably have many questions about the process. To learn more about franchise laws, visit our article library.

Answers to Your Questions About Franchise Law

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Could My Licensing Agreement Be a Franchise?

Thu, 05 Aug 2010 08:00:00 EST

If you have a business in New York, and you have licensed certain aspects of that business, then it is actually possible that your business relationship could constitute a New York franchise. And if it is a New York franchise, then U.S. law may hold you liable as a business franchisor. To know whether you are franchising your business, you can ask yourself these 3 questions:

Is my licensee's right to my business associated with, or identified by, my business name, trademark, or other commercial symbol?

Is my licensee required to make regular payments to my business?

Do I maintain a certain degree of control over my licensee's operations, or offer them regular assistance?

If the answer to these 3 questions is yes, then you may have unknowingly entered into a franchisor/franchisee relationship. In this relationship, you are required by law to meet certain obligations. These obligations include registering a pre-offering disclosure with the state, and providing such disclosure to your franchisees.

You must also establish the terms of the franchise relationship in a legally binding agreement. To know whether your business relationship constitutes a New York franchise, or to establish a franchise relationship, you can get the professional help of a New York franchise attorney.

If you are involved in a business relationship in New York, or if you are interested in establishing a franchise relationship, you can learn more about the laws concerning franchise licensing by visiting our article library.

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including how to structure your business as a franchise and obtain the proper licensing. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

I am Licensing My Business. How Do I Avoid U.S. Franchise Laws?

Thu, 05 Aug 2010 08:00:00 EST

If you want to enter into a business relationship with a distributor or licensee, and meanwhile avoid the obligations required by New York franchise laws, then there are several pitfalls that you must stay away from. To prevent entering into a New York franchise relationship, you must not:

Assert any significant degree of control over the business relationship
Provide and significant degree of assistance in the business relationship
Require the distributor or licensee to make regular payments to your company
Insist that the distributor or licensee use your trademark or business name, and maintain control over the use of that property

By avoiding these arrangements, you should be exempt from New York franchise laws. However, different states have different laws, and if there is a disagreement, it may be left up to a court to determine the status of your business relationship.

Any joint ventures or strategic business alliances may be considered a franchise relationship, especially if that relationship involves the use of a unified name or trademark. To know whether your business relationship constitutes a New York franchise, you can get the professional advice of a New York franchise attorney. An attorney may be able to help you avoid New York franchise laws.

If you are involved in a business relationship in New York, or if you are interested in establishing a franchise relationship, you can learn more about the laws concerning franchise licensing by visiting our article library.

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including how to structure your business as a franchise and obtain the proper licensing. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Should You "Franchise" Your Business

Wed, 04 Aug 2010 08:00:00 EST

This is not an easy question and, quite frankly, a question that should prompt significant research and investigation on your part. Like many other successful entrepreneurs that have experienced success - real success- you may be inundated with inquiries and requests for information about your business. Before doing anything it is critical that you "take a step back" and consider whether or not Franchising is right for you. One way to make this evaluation is to consider some of the tasks and obligations that you must undertake prior to Franchising. These tasks, include:

Development of a Franchise Plan - a franchise plan will include specifics for you franchise including the franchise fee and royalty amounts that you wish to be associated with your franchise

Develop an Operations Manual and Training Programs - your franchisees will need something to go off of in order to replicate your business' success. One way to do this is by training the franchisees and also having a specific operations manual to map out how the franchise locations should be run.

Registration and Evaluation of your Trademarks - your intellectual property needs to be registered when franchising your business because franchising your business will include the franchisee buying the rights to use your established trademark and/or brand name.

Development of your Disclosure Documents - as a franchisor you are required to have both a franchise agreement and a Franchise Disclosure Document to provide to prospective franchisees. These documents should be prepared by a franchise lawyer and must be registered with the appropriate authorities. Depending on which state you live in the FDD must also be filed with the state.

For more information on "how to franchise your business", you may request a complimentary copy of Charles N. Internicola's Franchise law report. In this frequently requested report you will be provided with important information about the steps that you must take (now) before starting a Franchise. For a complimentary copy call 800.976.4904 or request a copy by email.

Where Can I Learn About New York Franchise Laws?

Wed, 04 Aug 2010 08:00:00 EST

There are various resources on the Internet where you may obtain information about New York franchise laws. You can view the New York Franchise Laws by conducting a simple Google search. Article 33 of New York State Code, sections 680-695, lists the rules and regulations that govern New York franchises. These rules include disclosure requirements, fraudulent and unlawful practices, and actions by the department of law. This code also lists the civil remedies that are available to franchisees.

You can also find valuable information on the Franchise Page of the New York Attorney General website. Under the "supplemental information" link, you will find a heading titled Franchise Forms. Here you will see a list of the information that a franchisor must provide when registering a franchise in New York.

This is information that must be provided in the Franchise Disclosure Document, which includes recent financial statements, stockholder equity figures, as well as the history of any lawsuits or bankruptcies that the company has experienced.

By failing to provide this information, a franchisor will be in violation of New York franchise law, and may be subject to legal action. If you need to take legal action after the violation of franchise law, you can get the professional help of a Manhattan franchise attorney.

If you are interested in starting a franchise in New York, you probably have many questions about the process. To learn more about franchise laws, visit our article library.

Answers to Your Questions About Franchise Law

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

Four Steps to Franchising Your Business

Sun, 01 Aug 2010 08:00:00 EST

If you plan to franchise in New York, here are four steps to get you started.

1. Hire a franchise consultant

By hiring a franchise consultant, you will gain the expertise of a professional in the franchise industry. A franchise consultant can help you establish a plan to expand your business nationwide, as well as attract the interest of investors. A franchise consultant can also help you from making common mistakes that could hurt your new venture's chances of success.

2. Hire a New York franchise attorney

When you begin to franchise in New York, the process will involve various legal, technical, and business documents. To understand these documents, and fulfill their requirements, you should get the professional help of a New York franchise attorney. A New York franchise attorney can help you overcome the legal hurdles of expanding your franchise business.

3. Market Your Business

Once you have decided to franchise in New York, you need to market your business model. This means attracting investors, and convincing them to become franchisees. You can do so by traditional advertising, speaking at conferences, and attending promotional events.

4. Prepare yourself

Most importantly, you will need to change your business mind-set. When you begin to franchise, you will no longer have to manage the operations of an independent business. Instead, you will have to oversee the operations of numerous franchisees. This means managing your products/services, controlling your distribution channels, and marketing your brand.

Learn more about how to franchise your business by visiting our article library.

If you are an entrepreneur who is interested in franchising a your business, there is a lot you need to know. For a limited time, get this FREE book on franchising a business The Revised Franchise Formula: A Guide to Franchising Your Business in the New Economy. Offering expert help in New York, New Jersey and nationwide, business and franchise attorney Charles N. Internicola is ready to answer your questions about franchise, national and international trademarks, and any critical business matters that may arise. Contact us today - 1-800-976-4904

What Is The Difference Between a Franchise Agreement and an FDD?

Sat, 31 Jul 2010 08:00:00 EST

When you start a franchise in New York, there are two important documents that you will receive in the franchise process. The first document that you receive will be the Franchisor Disclosure Document (FDD), which will disclose information that you need to know about the business franchisor.

The FDD will include information about the franchisor, such as:

Company history and background;
Financial information;
Distribution information; and
Past lawsuits or bankruptcies, if applicable.

The FDD provides valuable information that you will need to make your impending business decision. Once you have made your decision to start a franchise in New York, you will then need to proceed with signing the franchise agreement.

The franchise agreement is the document that will legally bind you to the franchisor. This will include information about your obligations. It will list rules for use of the franchise name, guidelines that you must follow, and confidential information about the business arrangement, which must not be shared with anyone.

The franchise agreement lays down the rules of owning your own franchise in New York, and it legally binds you to those laws. If those rules are broken, you may end up in a legal dispute. In this case, you will need the professional help of a New York franchise lawyer.

If you are interested in starting a franchise in New York, visit our article library to learn more about what is included in a franchise agreement.

As an entrepreneur who is interested in franchising a business, there is a lot you need to know. For a limited time, get this FREE book on franchising a business The Revised Franchise Formula: A Guide to Franchising Your Business in the New Economy. Offering expert help in New York, New Jersey and nationwide, New York franchise attorney Charles N. Internicola is ready to answer your questions about franchise, national and international trademarks, and any critical business matters that may arise. Contact us today - 1-800-976-4904