Let’s posit you have operations in Pennsylvania, where I live, and those operations are in located in one of the Northcentral or Northwestern Counties (including Erie) that went to Yellow Phase on May 8th, one of the Southwestern Counties
Surprise! On April 8th, FASB delayed for one year the implementation of the new ASC 606 revenue recognition standards for private companies,[1] citing the coronavirus pandemic. In addition to delaying implementation, FASB indicated it would investigate “how to reduce implementation costs relating to applying Topic 606 to initial franchise fees.” While the
With most non-essential businesses closed across the country, it is easy to forget we are two weeks away from the April 30th Franchise Disclosure Document (FDD) update deadline for franchisors with a calendar fiscal year end. Some franchise systems are delaying the preparation and issuance of an updated 2020 FDD and corresponding state renewal registrations.
Need and speed can be a dangerous combination. Just ask Peter “Maverick” Mitchell. That’s a lesson that lenders and borrowers are discovering with CARES Act Payroll Protection Program (PPP) loans. The CARES Act’s PPP provisions promise accessible liquidity support for franchises and small businesses. Indeed, Treasury Secretary Mnuchin said PPP or Emergency Income
On April 3, 2020, banks commenced taking applications for the Small Business Administration’s (“SBA”), Paycheck Protection Program (the “PPP”) loans, as provided in the Coronavirus Aid, Relief, and Economic Security Act aka the CARES Act. At the highest level, the PPP allows eligible businesses to borrow up to 2.5x average monthly payroll costs
There’s a big insurance company that uses the tag line: Life Comes at You Fast. I sure feel that life is coming at me very fast in this Brave New World of COVID-19. Congress seems to agree, as it worked in record time to enact the $2 Trillion Coronavirus Aid, Relief and Economic Security or
This was updated on April 15, 2020, to reflect changes issued by Illinois and Indiana.
This was updated on April 6, 2020, to reflect changes issued by Virginia.
This has been updated to reflect changes issued by Florida, Hawaii, Indiana, Minnesota, New York, and Washington.
Good things come to those who wait … except when
Franchise systems, and many licensing arrangements, contain anti-poaching provisions. These provisions are being tested under the antitrust laws as being anticompetitive. This article will discuss the benefits and burdens of including such provisions in your agreements.
These “no-poach” or “anti-poaching” clauses are fairly standard provisions
In a recent opinion, the Texas State Office of Administrative Hearings (SOAH) disagreed with a Texas franchisor that claimed rent and other fees received from its franchisees were mandated by fiduciary duty to flow through to other entities and therefore not taxable revenue.
The Franchise Agreement and the Franchise Disclosure Document of the franchisor,
More and more states are launching online portals allowing franchise systems to file initial registrations, exemptions, renewals and amendment applications electronically. The Indiana Secretary of State, Securities Division launched the Indiana Securities Portal exactly one year ago. According to the Indiana Division, the implementation has been very successful and the feedback over the past year