Last night I reviewed a franchise agreement and found a surprising, and illegal, provision buried deep in the contract. If ever there was a compelling case for being careful when you are choosing legal counsel, I just found the provision that makes it.
A federal court in Seattle has denied the International Franchise Association’s request to enjoin the portions of Seattle’s minimum wage law that discriminate against franchisees.
Franchisees and franchisors continue to fight new minimum wage laws by U.S. cities that discriminate unfairly against small business owners who are affiliated with franchise systems. Are these types of laws “industry specific” within the meaning of Item 1 of the Franchise Disclosure Document?
Avoid making these mistakes in Item 6 of your Franchise Disclosure Document.
Another Franchise Disclosure Document section franchisors frequently get wrong is Item 5; avoid making these mistakes in Item 5 of your own FDD.
The Franchise Disclosure Document section franchisors most frequently get wrong is Item 2. Avoid making these mistakes in Item 2 of your FDD.