On February 22, 2023, the United States Supreme Court clarified that if your partner commits fraud and becomes liable for damages, you, as a partner, are also liable. Most importantly, the damages may not be dischargeable in bankruptcy.
Caroline Fichter, a partner at Bundy & Fichter, recently received the prestigious Legal Eagle award by Franchise Times. This award recognizes outstanding lawyers in the franchising industry who have made significant contributions to the field and have helped shape the industry's landscape.
Most people are familiar with what a franchise is. Every time someone visits a McDonald’s or a 7-Eleven, they are patronizing a franchise, and they know it by the familiarity of the product offerings and the general look and feel of the operation—not only its physical layout but also its use of logos and other symbols or sayings.
In the process of pursuing a franchise opportunity, you might run into someone called a franchise consultant, who may even work for a larger franchise consulting firm. This person promises to match you and your interests and abilities to the best franchise opportunity out there for you. Should you agree to work with that person or firm?
Franchises comprise about 10.5 percent of all businesses in the United States, representing 3 percent of the national gross domestic product (GDP). Also, according to the U.S. Bureau of Labor Statistics (BLS), about 20 percent of independent businesses shut down after two years, but 92 percent of franchises at two years are still doing well.
The United States is the worldwide mover in the franchise industry, with 18 of the world’s top 20 franchises headquartered here. Indeed, it’s hard to travel anywhere in the world and not find a McDonald’s, 7-Eleven, KFC, or other familiar American brand.
The allure of owning and operating a franchised business and leaving behind the 9-to-5 daily work grind — in which you have to follow the directions and dictates of others — can be quite strong. Plop down some savings, get trained on operating the business, open your location, and you’re off and running.
On September 18, 2022, the North American Securities Administrators Association (NASAA) adopted a Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements.
You have a thriving business that is running smoothly, and you start thinking your concept could make a good franchise opportunity for others. This would not only expand your brand but also guarantee you a monthly revenue from any franchisees who sign up.
If you’ve just attended a franchising convention or a sales presentation, read an inspiring novel, or have a dream in front of you, it’s like you want to hop on the bandwagon and enter a franchise opportunity. Visions of instant profits float before your eyes, and you’re ready to pull out your checkbook, pay the franchise fee, and sail into a golden future.