Resource Center

Whether you’re thinking about buying a franchise, or if you’re already a franchisee and you’re facing a termination or nonrenewal, want to know more about how franchise disputes are resolved, or are forming a franchise association, you can better understand your situation if you have some basic information. 

Buying a Franchise

A franchise can be the biggest investment of your life. You need to have all the information you can, and you need to look at your decision from all angles. Let us help you get your hands around this important step. 

Basics of Buying a Franchise

Have you shopped around? Is the franchisor in good financial health? Has the franchisor had experience in your part of the country? Is the business subject to special regulation? Are the trademarks good? Is the history of litigation particularly bad or does it tell a particular story? Have you talked to existing franchisees? Do you understand thoroughly the franchisor’s training and support? Have you talked to a competent franchise attorney and had him or her review the franchise agreement, the FDD and the related documents? Learn more about the basics of buying a Franchise »

 Red Flags and Early Warning Signs

There are several factors that may arise with respect to franchise sales that have proven to be indicators of trouble ahead. No one factor necessarily should stop you from buying a franchise, in and of itself, but if you find one or more of them, you should proceed with caution. For instance, does the franchisor or its representatives or brokers talk about how much money you can make? Does the franchisor suggest or point to particular franchisees that you should speak to in order to get an idea of how the franchisees are doing? Are you required to obtain product from only one source? Learn more about possible red flags when buying a franchise »

 Things to Ask Other Franchisees

There are many questions you should be asking existing franchisees, including how long have you been in business? Have you ever had to not pay yourself a salary or wage? How frequently do you hear from the franchisor’s representatives? If you had it to do over would you do it over again? Review the questions you might be asking other franchisees »

 Questions to Ask at Discovery Day

Discovery Day or similar events are opportunities for prospective franchisees to learn about the franchise from the franchisor first-hand. At a typical discovery day, a prospect, who usually has already received a FDD and who has passed some preliminary thresholds, visits the franchisor’s headquarters and tours various departments and meets with personnel of the franchisor who interface with franchisees. Discovery Day is an opportunity for a prospective franchisee to ask questions and observe the franchisor first-hand. Find out what questions you should be asking the Franchisor at Discovery Day »

 Termination and Non-Renewal

Termination or refusal to renew a franchise is not only one of the most frightening prospects for a franchisee but is also very complex. You need to understand your rights and obligations if you are faced with either one. Termination and non-renewal are similar concepts, but there are critical differences. Termination is the cancellation of the franchise before the end of its time period. Non-renewal occurs when the franchise agreement comes to an end and the franchisor does not renew it. Learn what to do if you are threatened with termination or non-renewal. »

Getting Out of Your Franchise

Getting out of your franchise means confronting an array of potential problems, from claims by the franchisor for future lost royalties to covenants not to compete. Learn about these risks and how you can avoid them. »

Forming a Franchise Association

Learn the main reasons for forming a franchisee association, the advantages of forming it and the steps involved in creating an association, including: Why form a Franchisee Association? How is a Franchisee Association Formed? Can the Franchisor Punish Franchisees for Forming or Joining an Association? Can an Association sue the Franchisor on behalf of the Franchisees? What should Associations be careful about? How Do You Start A Franchisee Association? How Is The Association Funded? Find out more about the advantages of a Franchise Association and the steps to create one »

Dispute Resolution

Who will resolve your dispute? How will it be done? Where will it be done? Franchise agreements can contain a dizzying array of confusing terms—“mediation,” “choice of law,” “arbitration,” and so forth. To help you better understand what these terms mean and how they may affect you, we have put together a simple guide to help you understand the basics. Find out more how you can resolve your dispute through Litigation, Arbitration or Mediation »