I was recently interviewed on the Texas Standard Radio program concerning the termination of 37 franchise restaurants owned by a single franchisee because of a rat infestation at one of its South Texas Burger King restaurants. Following is the report was done by Texas Standard reporter Sol Chase: In February, video of a rat infestation at a South Texas […]
Hot Legal Issues: Encroachment and the Internet
E-Commerce has opened a new frontier for the distribution of goods and services. Along with opportunity however, it also brings difficult decisions for many franchisors. Typically, the grant of a franchise includes some form of territorial rights. The extent of those rights is now being tested in many franchise systems. Example: If a franchisor establishes […]
5 Questions Wannabe Franchisors Ask
Feel the Need to Franchise Your Business? FAQS Answered. I come from the Keep It Simple school of franchise law, and prefer to make franchising as uncomplicated as possible. But it is still not something you should jump into just because you think franchising is a fast way to grow or a great way […]
Franchisors – Do You Ever Read Your Franchise Agreement?
I often reviewing franchise offerings for people thinking of buying franchises. And I also write the same kinds of franchise documents for franchisors. This has forced me to face the consequences of certain types of clauses and the ethical implications of those creative clauses designed to protect the franchisor client in all circumstance. So I […]
Sometimes You Should Just Say No
… because franchise agreements can look just like credit card agreements. I started reviewing and writing franchise agreements, even before I moved to Texas in 1989. When I first got here, franchise agreements seemed pretty balanced to me. It was standard practice to use phrases like “[franchisor] shall not unreasonably withhold its consent…”. Nowadays the […]
