Editor's Note
Our readers, from time to time, contact me to suggest that we run an article on one topic or another (and I always welcome such requests). A number of…
Court Watch
Highlights of the latest franchising cases from around the country.
News Briefs
Highlights of the latest franchising news from around the country.
New Proposed Franchise Rule Released
On Aug. 25, the Federal Trade Commission released a proposed final rule, "Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures," known more commonly as the Franchise Rule. FBLA's editorial staff is now working on an in-depth analysis of the Franchise Rule in a special report that will be distributed to all subscribers. Check our Web site at www. ljnonline.com/alm?franchising for the most up-to-date coverage. To read the proposed Franchise Rule, go to the FTC's Web site at <a href="http://www.ftc.gov/opa/2004/08/franchiserule.htm">www.ftc.gov/opa/2004/08/franchiserule.htm. </a>
Inside the Domino's IPO
On July 13, 2004, Domino's Pizza completed an initial public offering (IPO) and was transformed from a privately held franchisor of nearly 2000 restaurants worldwide (1300 in the United States) to a publicly traded company listed on the New York Stock Exchange. In this interview, Elisa D. Garcia C., Domino's Pizza executive vice president and general counsel, gives a quick overview of how Domino's worked with its franchisees to make the IPO a success.
Working Effectively with an Electronic Discovery Consultant
The high cost of discovery, especially e-discovery, has caused franchisors to frequently look to alternative dispute resolution. However, this is not always possible. Even when it is, it is not always wise to lose the benefits of an actual trial. Confidence that you can efficiently handle electronic discovery leaves all options open and also makes a positive result more likely.
Franchisees Unite to Purchase Franchisor
Sixty franchisees forced The Ground Round restaurant chain to file bankruptcy on Feb. 19, 2004. The same franchisees, 4 months later, became their own franchisor. They bought the franchise assets out of bankruptcy, including all the franchise agreements, the development agreements, 42 trademarks, and 38 prime leases which they assigned to the subtenants. The franchisees formed a for-profit cooperative, reduced their own franchise royalties, and obtained traditional bank financing. They achieved their goal by maintaining a united front, developing a unique governance structure, and maintaining a vision for operating profitably unlike anyone else in the casual-dining restaurant sector.
