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Drafting the Right Franchise Agreement
Drafting the right franchise agreement for your client starts with the development of a franchise plan that establishes the framework of the franchise system. Too often, clients look to franchise counsel solely to advise them with respect to disclosure obligations, state and federal compliance requirements, and preparation of agreements. However, the success of the entire system starts with the development of a well-thought-out franchise plan. The client's considerations should include the following, among others:
1. The characteristics of the model franchisee. This is one of the most crucial elements of a successful franchise system. Considerations include what will be the franchisee's liquid net worth requirements, level of experience in the type of business being franchised, and its capacity to grow beyond a single unit. Franchising to unsophisticated or financially weak franchisees has the potential to lead to closed units, which must then be disclosed in the Franchise Disclosure Document (“FDD”). Reports of closed units will be a cautionary signal to the more-established franchise prospects. Furthermore, developing a corporate infrastructure based on projected store openings contracted for in multi-unit development agreements that subsequently fail to materialize has the potential to cripple a franchisor's operations.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.