Welcome to Franchise Alchemy, a blog that magically transforms franchise business and law news into golden concepts. Of course, we make no promises about the gold or the magic. But we’ll do our best.
We are lawyers at the national law firm of LeClairRyan. We hope to make real contributions to the conversation with franchisors, franchisees and franchise consultants, and with legislators, judges, franchise law administrators and individuals and businesses considering franchising. In sum, our audience is comprised of people in the franchise business and those who deal with franchise companies or simply have an interest in the subject.
Why franchising? Franchising is big business. McDonald’s had $28 billion in revenues and $5.6 billion in profits in 2013. Franchising is global. Subway has more than 67,000 shops worldwide. Franchise businesses range from quick serve restaurants to hotels, health care, education and many other business or consumer services. We plan to cover the field.
Why another law blog? Franchising is highly regulated. The Federal Trade Commission requires franchisors throughout the U.S. to make detailed disclosures to prospective franchisees. Franchise sales laws in several states require franchise registration. Other states have business opportunity laws that may also require disclosure and a presale filing. Franchise “relationship” laws in many states limit the franchisor’s ability to terminate a franchise or to refuse to renew a franchise without good cause.
Moreover, blog postings reflecting our depth of knowledge and experience in franchising can help franchise companies and those who deal with them to cope with any number of issues that face all businesses. Franchise companies face issues, for example, in the fields of employment law, mergers and acquisitions, financings, intellectual property protection, real estate, litigation and bankruptcy.
We will report on judicial, legislative and business developments and challenges in franchising as they unfold. We will also discuss what we believe the law should be.
Our bias is pro-franchising. We will promote healthy franchise practices that are profitable both for franchisors and franchisees, as well as legislative changes that will improve the business of franchising. We believe that what is good for franchising will also be good for employees, for customers and for the economy.
We welcome your comments.