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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.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.