As franchisees try to navigate through the COVID-19 crisis, one more thing to beware of is “help” that comes with strings attached. Many, if not most, franchisees are behind on bills, including royalty and fee payments to their franchisor. Many of those will receive an “offer” from their franchisor that they will “defer” some of the fees until later—if you will just sign this “standard form” agreement.
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Problems with Your Franchisor–Don’t Use Franchisor’s Email System
If you are having problems with your franchisor-or issues that could become serious, your first reaction may be to send an email to a friend or to an attorney seeking advice.
Franchise Times Names Howard Bundy and Caroline Fichter 2021 Legal Eagles
The Bundy Law Firm is proud to announce that partners Howard Bundy and Caroline Fichter have been selected as the 2021 Franchise Times Legal Eagles. The Franchise Times named Caroline Fichter as a Legal Eagle and Howard Bundy entered the Legal Eagle Hall of Fame.
What is an Operating Agreement? When Should You Review It?
When you launched your business and set up a limited liability company, you probably signed an operating agreement. Your operating agreement is essentially an agreement among the owners about how the business will be operated.
What Is a Personal Guarantee - Why You Should Think Before You Sign
Franchisors require virtually every person who buys a franchise to sign a personal guarantee, even if they plan to operate the franchise through a through a corporation or limited liability company. You should think twice (or more) before signing a personal guarantee.
When Buying a Franchise–5 Key Things to Look For
In evaluating and buying a franchise, there are many things you should consider. Not every franchise is a good investment.
Best Practices-New Accounting Rules Are Delayed (Tentatively)
The Financial Accounting Standards Board (FASB) met on April 8, 2020 and agreed to delay the effective date of the modified Rule 606, which changed the way companies recognized revenues. In effect, the extension would be for one year.
How to Survive a Pandemic: Tips for franchisees
Over the last few weeks, franchisees across the country have been faced with challenges no one ever imagined. Franchisees operate in some of the hardest hit businesses including fitness, food service, and health and beauty. Whether your business has suffered from a sudden drop in sales, shifted to take out only, or been forced to close, Coronavirus is likely forcing you to ask hard questions about how your franchised business can survive.
Best Practices – Franchisors Must Adjust to New Accounting Rules
Following best practices, franchisors must adjust to new accounting rules, which take effect for reporting years beginning January 1, 2019 for most franchisors. Publicly traded franchisors were required to comply for reporting years beginning January 1, 2018.
Yes, You Do Need to Get Your FDD Reviewed When Buying a Franchise
Do you wonder whether there is value in hiring a franchisee attorney to review your Franchise Disclosure Document (FDD) before you commit to buying a franchise? Every prospective franchise asks that question. The question is legitimate. The answer is a resounding “yes”. A few hundred dollars invested today can literally save you and your family from personal bankruptcy.