The Federal Trade Commission (“FTC”) has requested public comments on its Trade Regulation Rule entitled “Disclosure Requirements and Prohibitions Concerning Franchising” (the “Rule”). The Rule makes it an unfair or
Continue Reading FTC Seeks Comments on Franchise Rule
Restaurant Structural Change: The Opportunity
Last time we asked, given the high number of restaurant concept bankruptcies and money sloshing around in the sector, is there still more upside than downside in the restaurant franchising
Continue Reading Restaurant Structural Change: The Opportunity
Restaurant Structural Change: The Challenge
Imagine operating a single restaurant. The food keeps bringing them in, and prices are relatively stable. Consumer confidence is high, unemployment low, discretionary income rising, and people are going out
Continue Reading Restaurant Structural Change: The Challenge
Failing to Plan? Then Plan to Fail.
To paraphrase Benjamin Franklin, “Those who fail to plan, plan to fail.” That is true in any business, but particularly so in franchising. Planning is more important in franchising because
Continue Reading Failing to Plan? Then Plan to Fail.
Are You Doing the Right Due Diligence as You Grow Your System?
In our last post, we examined some of the types of risk that come with growth. In this post, we discuss some forms of diligence that may be used to
Continue Reading Are You Doing the Right Due Diligence as You Grow Your System?
Reducing Your Risk When Growing your System
Growth can be expensive, but it is always more expensive when the expansion is taken without risk assessment. Whether domestic or foreign, many risks can be reduced or avoided by
Continue Reading Reducing Your Risk When Growing your System
Time to Reconsider No Poaching Agreements? Yes, Emphatically.
Renewed Efforts to End No Poaching Provisions
Franchisors need to review their franchise agreements and take immediate action in response to the recent onslaught of legal action over “naked no
Continue Reading Time to Reconsider No Poaching Agreements? Yes, Emphatically.
Change is Inevitable and Some Requires Special Handling
Change is inevitable in a franchise system, and disclosure then becomes a concern. Disclosure may be a business issue for the existing franchisees, but it becomes a legal issue in
Continue Reading Change is Inevitable and Some Requires Special Handling
Succession Plans that Succeed
Succession plans ask what will happen when the principal owner/operator is not available.
A succession plan may be coordinated
Continue Reading Succession Plans that Succeed
What Restaurant Franchising Tells Us About the Future
Restaurant operators and their financiers often need to predict the future. The operators, mostly from franchised brands, need to adapt to changing tastes and fashion. The financiers need to assess
Continue Reading What Restaurant Franchising Tells Us About the Future