Opportunistic behavior by franchisees, who use a natural disaster to unethically profit from a tragedy, can cause significant harm to a franchise system and its brand. A story of a motel franchisee charging rates that are 620% above its normal seasonal rates after Hurricane Sandy illustrates the public relations issue and the importance of dealing with such problems quickly and decisively.
Tag: franchisor
Does Your Franchise Agreement Address Group Arbitration?
A popular contractual tool for franchise systems is a mandatory arbitration provision. A pair of recent decisions suggest that, where a franchisor’s franchise agreement does not directly address the issue of class- or group-wide arbitration, franchisees may be able to consolidate their claims and proceed against the franchisor as a group. The cases illustrate the importance for a franchisor of ensuring that its franchise agreement’s arbitration clause is drafted carefully.
Home Care Assistance Executive Team Featured In Forbes
Congratulations to my franchisor client, Home Care Assistance 1-866-4-LiveIn, which recently had an article published in Forbes regarding its young executive team.
Speaking At Denver Franchise Show This Weekend
This weekend (September 29 and 30) I am speaking at the National Franchise and Business Opportunities Expo at the Convention Center in Denver, Colorado.
Breaking A Link In The Chain: Franchising Lessons From The Bourne Legacy
The events in the movie The Bourne Legacy have some similarities to what can sometimes happen among and to franchise systems. Like the “Treadstone” organization, franchise systems/chains are only as strong as each of their links. When a link is broken, it can threaten the entire chain.
Fiscal Times Discusses Taxes On Out-Of-State Franchise Companies
A recent article in Fiscal Times discusses the issue of state income tax on out-of-state franchisors, a trend that is growing in popularity among a variety of states.
