(914) 265-4100. jl@lusthauslawpc.com

Franchise Matters

Whether you are buying or selling a franchise, be prepared! Because when it comes to selling a franchise, there are many laws regulating every sale. In our previous blog, we discussed disclosure laws. Today, let’s take a closer look at “franchise relationship laws.”

Are the employees of your franchisee your employees too? That’s the question National Labor Relations Board General (NLRB) Counsel Peter Robb sought to avoid when he proposed the March 19, 2018 settlement agreed to by McDonald’s.

That depends! If you are considering entrepreneurship, one of the first questions that you will have to ask yourself is whether you want to start a new business or buy one that is already operating.

Pretty darn strong! According to the 2018 Franchise Business Outlook Report issued by the International Franchise Association (IFA), the franchise sector is expected to grow faster than the rest of the U.S. economy.  In 2018, franchise establishments are expected to grow an additional 1.9 percent to reach 759,000 strong.

Whether you are a single store or multi-location franchise restaurant operation, food waste is costing you money. Lots of money.

Forget the new federal tax laws. Take a look at the new rules on revenue recognition issued by the Financial Accounting Standards Board (FASB) now going into effect

You’ve got a great business. You may even have a budding multi-store operation. You’re ready to move into the big time. Great! But one thing is holding you back: Cash. Or the lack thereof.

These days, restaurant consumers have come to expect convenience and are increasing their demand for delivery options. More and more, they are demanding speed and reliability. For restaurants in the business of food service, the issue of delivery can no longer remain on the back burner.

You have a successful business. You have a couple of partners and are operating under one of the following scenarios: When you and your partners started your company, you did not think you needed an agreement among the owners or a partnership agreement. So, you didn’t create one.

If you think you may have accidentally sold a franchise in violation of law, you will want to contact knowledgeable franchise counsel immediately as there may be severe consequences. Depending on the jurisdiction, the government can seek preliminary and permanent injunctions and impose civil penalties against the franchisor and you, the owner.


Lusthaus Law P.C. • 600 Mamaroneck Avenue • Suite 400 • Harrison, NY 10528
 jl@lusthauslawpc.com • Phone: 914-265-4100 • LinkedIn