The Entrepreneurial Lawyer’s Blog

Viewing posts for the category Business Formation & Planning

June 22, 2018

3 Key Franchisee Considerations Before Signing a Multi-Unit Agreement

Signing a multi-unit agreement to buy several franchise territories can unlock fantastic savings on franchise fees and exponentially increase the opportunity for return on your investment. For example, if you agree to open up three pizza franchises, you will sign a standard franchise agreement for the first unit, and a separate multi-unit agreement to open all three units over a set period of time, usually at a discounted fee. You will also be required to provide notice to the Franchisor and execute two additional franchise agreements for territory two and three.  It sounds simple and straightforward, but there are a few potential pitfalls to be aware of before agreeing to buy multiple units.

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October 23, 2017

What You Need to Know: Registration State vs. Filing State

Every year that goes by, the world seems to get smaller. For anyone in the business realm, expanding out of your area can be as simple as hopping online or creating a website. When that expansion tempts franchises in the states, it’s not as simple as adding a new tab to the website.

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October 5, 2017

Covenant to Non-Compete: What are the Rules?

As a general rule of thumb, every franchisor will want to build a non-compete into their Franchise Disclosure Document (FDD). Once you give a franchisee the complete playbook to running and operating your successful business model, you don’t want them to turn around and start running their own offshoot. Which is where the non-compete comes in. It protects you.

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