The franchise industry has not been immune to the effect of the Covid-19 Pandemic. As a result, franchisors may want to consider some of the following measures to ease the burdens, both financial and otherwise, that their franchisees are currently...
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The COVID-19 virus has caused the WHO to declare a global pandemic. The labeling of this virus has contractual implications as well. Many franchise agreements and lease agreements have a clause that is activated in these situations. The clauses can...
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Item twenty is one of the most significant items in the Federal Disclosure Document; it is titled outlets and franchise information.1 The franchisor is required to disclose the total number of franchises and company-owned franchise for the last...
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Item eighteen is titled public figures.1 This item requires the franchisor to list any public figures that are compensated for their aid in selling franchises. Although there was a critique to abolish this item since it is rarely used, the...
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Items five through seven concern fees and the initial investment costs.1 Item seven is the estimated initial investment; in the case that the amount of payment is unknown (e.g., real estate costs) the franchisor may give a low-high range based on...
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The items listed in the Federal Disclosure Document contain necessary information about the franchisor that enables the prospective franchisee to make an informed decision about whether to invest in the franchise system in the U.S. Respectively,...
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Franchising is only regulated on the Federal level by the Federal Trade Commission through disclosure requirements,1 referred to as the Franchise Rule,2 and the current version’s effective date was July, first, 2007.3 However, specific industries...
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Recently the New York times posted an article titled, “Subway Got Too Big. Franchisees Paid a Price” (06.30.2019) where it talks about the treatment of some franchisees in the Subway franchise system.
According to the article, franchisees feel...
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The de minimis principle originated from Court of Justice of the European Union (CJEU) jurisprudence which has specified that EU competition laws, specifically Article 101 (1) Treaty on the Functioning of the European Union, (TFEU), are not...
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In 1988 the Commission decided the case of Charles Jourdan, which submitted their application for the exemption in Article 101(3) TFEU in 1985.1 The Commission stated that, similar to the Pronuptia case and previous Commission Decisions we have...
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