Spring 2012
Vol. 15, No. 2
Franchise Agreement Provisions That Affect Eligibility for SBA LoansFranchise systems continue to face significant hurdles in securing lending sources to finance the development and opening of new locations. While access to conventional credit sources remains somewhat limited, loans guaranteed by the Small Business Administration have become a key resource for franchisors and franchisees. But SBA loans are available only under certain conditions and those conditions may be difficult to reconcile with the terms of certain franchise programs. Most systems, however, albeit with some modifications to their franchise agreements, should be eligible for inclusion on the SBA Franchise Registry. Read more…
Establishing Diversity Jurisdiction in Franchise Disputes: The Value of Injunctive Relief
The value of preliminary or permanent injunctive relief may be properly included to reach the jurisdictional threshold for diversity jurisdiction in federal courts. Currently, however, the circuits are split on whether the value of the injunctive relief should be measured solely by the benefit to the plaintiff (regardless of the cost to the defendant), or by the greater of the benefit to the plaintiff or the cost to the defendant, but not the sum of both. Read more…
Healthcare Franchises: Just What the Doctor Ordered, or Prescription for Trouble?
Seasoned franchise lawyers are familiar with the many issues that must be considered when developing more “conventional” franchise systems, such as restaurants, tutoring services and automotive care concepts. Those same lawyers may be surprised to learn that the patchwork of federal and state laws controlling the sale of franchises is just the tip of the iceberg when it comes to regulations that govern franchises offering healthcare services. Read more…
10 Things You Need to Know About the FTC's New Biz Op Rule
On March 1, 2012, the FTC’s new Business Opportunity Rule became effective. It replaces the FTC’s Interim Business Opportunity Rule and the business opportunity provisions in the FTC’s old Trade Regulation Rule. This article describes 10 things you need to know about the New Biz Op Rule. Read more…
Pointers and Pitfalls
Three Things Outside Counsel Can Do to Impress Their Franchisor Clients
What are three things outside counsel can do to impress their franchisor clients, and do the same principles apply to all counsel? Read more…
Negotiated Sales in California
What additional disclosure and registration obligations must a franchisor comply with if it negotiates with prospective franchisees in California? Read more…
The Importance of Reviewing the Notes to a Franchisor's Audited Financial Statements
Why should both franchisee and franchisor attorneys review the notes to a franchisor’s audited financial statements? Read more…
Forum News & Events
Message From The Chair
As an organization, we have been fortunate to have excellent leadership over the past 30 plus years. Our leaders' diversity of opinion and thought combined with their passion has helped this organization establish and maintain itself as the preeminent organization for the study of franchise law. It is against this very formidable backdrop that I ask for nominations for the future leaders of this organization. We have once again established a Nominating Committee that will select my successor as well as four individuals who will serve on the Governing Committee, all beginning in August of 2013. Read more…
2012 Nominating Committee Selected
Joseph J. Fittante, Chair of the Forum, is pleased to announce the appointment of the 2012 Nominating Committee. The committee, which is headed by the Immediate Past Chair, is responsible for recommending candidates to fill open positions on the Governing Committee. Read more…
ABA Forum on Franchising Technology Tips
Since becoming Technology Officer for the Forum I have learned a lot about information and benefits available to Forum members that I had not been fully taking advantage of. Most of these benefits are easy to access from your computer with a few mouse clicks... if you know how. To educate those who may not have been aware of these benefits and to provide helpful tips on how to take advantage of them, I have created a practical, easy-to-use, technology tips document. Read more…
35th Annual Forum on Franchising -- Franchising: Your Backstage Pass
Every year in October, the Forum on Franchising offers a three-day legal conference featuring unparalleled educational programs and collegial social events where attendees network with familiar and new franchise bar colleagues, clients and friends. Come out to the Forum in Los Angeles which promises to be one of the finest and most memorable. Highlights that make this an event you do not want to miss. Read more...
New Books from the Forum On Franchising: Franchise Law Compliance Manual, Second Edition
Designed as a working tool for both corporate franchise lawyers and outside counsel, the Franchise Law Compliance Manual is a practical, comprehensive guide to establishing and maintaining a successful corporate compliance program. Read more...
