Can Franchisors Tell Franchisees What Prices to Charge? Many franchisors ponder whether they can set franchisee’s prices, and for good reason. Your franchisees’ prices for the goods or services they offer can significantly shape their business outcomes. If prices are too high, they risk losing customers, but if set too
Where can I find free FDDs? There are several state websites that allow the public to access franchise filings free of charge. NASAA www.efdnasaa.org Multiple states use this site to register their FDDs. Begin your search with the following steps: In the upper righthand side of the website start with
What is the 7 day FDD disclosure rule? The 7-day FDD disclosure rule or waiting period is part of the Federal Trade Commission (FTC) Franchise Rule. The FTC requirement prevents a franchisor from receiving a binding franchise agreement or funds from a prospective franchisee until the prospect has held the
Does a franchisor need to set up a new entity when starting to franchise? Yes, we recommend that future franchisors set up a new franchising entity before they start to franchise. Let’s delve into a scenario to illustrate how this concept can be crucial in the world of franchising. Let’s
(757) 263-4596 I have heard the terms Unit Franchisee, Area Developer, and Area Representative. What is the difference? These terms, especially “Area Developer” and “Area Representative,” saw interchangeable usage until the NASAA drafted a Commentary and guidelines to clarify the distinctions between these franchising programs. A Unit Franchisee owns and
What is the difference between Franchising and Licensing? We often hear from clients that franchising is too expensive and complex. Instead, they want to license their brand to others for a fee. The difference between a license and a franchise is important to understand when establishing business opportunity relationships. Otherwise,
What is the 14 day FDD disclosure rule? The 14-day FDD disclosure rule or waiting period is part of the Federal Trade Commission (FTC) Franchise Rule. This requirement prevents a franchisor from receiving a binding franchise agreement or funds from a prospective franchisee until the prospect has held the FDD
What are the regulations regarding franchise advertising? Most states with franchise advertising laws prohibit direct or inferred statements that investment in a franchise is “safe.” In addition, some state require franchise advertising to be filed and reviewed by the state. What is franchise advertising? Franchise advertising is advertising directed to
How long will it take to receive a trademark registration? The timing of trademark registration filed with the United States Patent and Trademark Office (“USPTO”) will vary depending on the type of application filed and any Office Actions issued during the trademark examiner’s review or oppositions that arise during the
How do you know when your business is ready to franchise? Picture this: one of your customers excitedly tells you that they’re relocating to Richmond, Virginia. They love your business concept, so much so that they’re eager to know if they can seize the opportunity to franchise your establishments right
With our experience in franchise and trademark law, we are well-versed in handling your company’s legal needs, allowing you to concentrate on growing your business.
