Senator Catherine Cortez Masto (NV) has once again supported protections for franchisees by sending a letter to the Federal Trade Commission expressing her concerns with disclosure and franchisor behavior in light of the Covid-19 pandemic. The press release and letter can be found here.
2019 Dickey’s BBQ Update
Despite Churn, Franchises Continue to Sell Once again, I am reporting on the very high churn rate for Dickey’s BBQ, yet the brand continues to sell a high number of franchises. Why? Do prospective franchisees not understand the numbers in the Franchise Disclosure Document? And, why is the government continuing to guarantee loans to a […]
Liquidated Damages Clauses – Franchising’s Unethical Hammer
The franchise industry is unique in so many ways, but that is not always good. For most, buying a franchise, next to buying their home, is the biggest investment they will make. Unlike all other investments they make, they risk everything in buying a franchise, every asset they own, and then some. You ask, how […]
What Does It Really Mean to Be Named a ‘Top Franchise’?
Blue MauMau – by Jeffrey M. Goldstein, November 12th, 2018 Franchisors love rankings. Visit any well-known franchisor’s website, and you are bound to see a laundry list of rankings purporting to provide third-party validation of the franchisor’s superiority in its niche, if not in the franchise industry as a whole. Similarly, a Google search for […]
NLRB Chairman Proposes Overhaul of Current Joint Employer Standard
Blue MauMau, by Janet Sparks, September 17th, 2018 Following the National Labor Relations Board administrative judge’s recent decision to reject McDonald’s proposed settlement to resolve all cases that called it a joint employer with its franchisees on labor law violations, the NLRB announced Thursday that it will overhaul the current joint-employer definition. Continue reading on […]
The Franchise Industry, Heavily Regulated? – Shattering the Myth
All of us have heard the argument: franchises are in a heavily regulated industry. Really? This paper will attempt to briefly clarify what is specifically regulated, what isn’t, and is it enough considering those investing in a franchise not only risk their investment, but likely all their assets. We hear the Federal Trade Commission (FTC) […]
Do Franchise Owners Really Own a Business?
Do franchise owners really own a business? That is a very important question. The franchise industry talks about franchise owners as independent business people, working for yourself, but not by yourself. But, what does ownership mean? Usually, if you own something, you have value, or equity, that you can sell. Historically, most franchise agreements contained […]
California Enacts Strongest Franchise Protection Rules in the U.S.
BLUE MAUMAU– Governor Jerry Brown of California signed a new franchise protection law Sunday afternoon that gives California franchise owners the strongest rights in the United States. The law protects franchise owners from franchisors who seek to terminate their business on a whim or who desire to take possession of a lucrative franchise without compensating the […]
Maine Franchise Owners Lobster Bake for Camp Ketcha Raises over $3000.00
The Maine Franchise Owners Association held a “Lobster Bake” fundraiser for Camp Ketcha on Friday October 17th. The event raised over $3,000 net dollars for Camp Ketcha. Camp Ketcha is a year-round non-profit organization serving the southern Maine community with programs in child development, family enrichment and summer day camping. Camp Ketcha has 107 acres […]
Gov. Brown vetoes bill to protect franchisees
Patrick McGreevy of the Los Angeles Times reports that Gov. Jerry Brown vetoed legislation to protect small-franchise owners against fast-food giants and convenience store chains, saying he needs more proof there is a problem before considering changes that would “significantly impact California’s vast franchise industry.” The measure by Sen. Hannah-Beth Jackson (D-Santa Barbara) would have […]