Archive for category Franchise Law
What is a pyramid scheme?
Posted by David Leon in Business law, Criminal Defense, Franchise Law on 27/06/2009
A pyramid scheme (a/k/a franchise fraud) is an investment fraud scheme in which someone is offered a distributorship or franchise to market a particular product. This involves a fee to become part of the business. The real profit is earned by the sale of new distributorships and not by the sale of the products. Typically, the scheme is sold by telling new subscribers that they can remake their original investment by selling distributorships to two or more people, and so on. Soon, the lower levels of the pyramid are unable to find more people to buy into the scheme, and the scheme collapses. (Source: FBI )
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
What do franchisees typically pay franchisors?
Posted by David Leon in Franchise Law on 06/03/2009
There is no set formula for payments from a franchisee to a franchisor. The most common payments are the franchise fee, which is set out in the UFOC/FDD document. This is a fee charged to participate in the franchise, and it is typically a one time start up fee. Additional fees include royalty payments (typically a monthly percentage of gross sales), shared advertising costs and continuing training costs. A thorough review of the franchise agreement is recommended.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
How do I franchise my business? What is the first step in franchising a business?
Posted by David Leon in Franchise Law on 03/03/2009
The first step is to map out how you are going to franchise the business. You need to be concerned about the produces you sell, how you sell them, and the places you will be selling them. You then have to address logistics: how will the products be distributed and sold? How will you sell the franchised system to franchisee? You will also need detailed financial statements, and other materials about the business for your offering circular. Many of these issues should be identified prior to drafting the franchisee agreement. Also, you will need to comply with various state and federal disclosure rules.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
I have a business. Am I able to franchise it?
Posted by David Leon in Franchise Law on 03/03/2009
That depends on the kind of business you have. Does your business rely solely on your know-how and expertise? Or can you make a model of your business that can run without your constant supervision? If your business model lends itself to being easily being cloned, such that you can train individuals how to run the business with minimal supervision, then the business might be one that can be franchised. In order to attract franchisees, the business should either be established, or have a unique concept or product that will give it a competitive advantage.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Why would l want to franchise my business?
Posted by David Leon in Franchise Law on 03/03/2009
A franchise is a useful tool to grow a business where the owners have a profitable business model that can be easily replicated but you do not have the time, energy or capital to open new locations. The franchise model allows business owners to grow the business and the brand with less capital compared to opening individual locations. Additionally, franchises, if structured properly, should attract motivated individuals who will have substantial time and money invested into the franchise (and hopefully try to make the franchise profitable.)
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Annual meetings and Texas companies
Posted by David Leon in Business law, Franchise Law on 21/12/2008
It’s still a great idea to document what has transpired over the past year with your business, even if you are the only owner. This puts you in the habit of observing company formalities, and it makes it easier for you to recall what happened in a given year, should an issue later arise.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Corporate minutes for the end of the year
Posted by David Leon in Business law, Franchise Law on 21/12/2008
This is a common question. Most companies and partnerships in Texas should complete some end of year meetings. The notes from these meetings, called “minutes” should be placed with the company’s records. The minutes should contain signatures of all owners of the company, and a list of any important business that has been transacted since the past meeting. You can also take this opportunity to have your board of managers / board of director elections for the upcoming year, double check that the registered agent and public information reports (PIR) are up to date. Contact Us for more information.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
What is an FDD? How is it different than a UFOC?
Posted by David Leon in Franchise Law on 25/02/2008
An FDD is the updated term for UFOC. An FDD is a list of disclosures that a franchisor is required to disclose to potential franchisees regarding the franchise offering, start up costs and a summary of important terms contained in the franchise agreement. Like a UFOC, an FDD is required in all fifty states. However, some states require additional disclosures.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
What is a UFOC?
Posted by David Leon in Franchise Law on 21/01/2008
A UFOC is a Uniform Franchise Offering Circular. This is a set of disclosures that companies selling franchises must give to potential buyers in advance. The disclosures include a synopsis of the franchise agreement, financial information about the business and its owners along with several other useful items to assist potential buyers. On top of the federally required disclosures, many states also require franchisors to supply additional information.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
-
You are currently browsing the archives for the Franchise Law category.
The Leon Law Firm Dallas, Texas & NY, NY Business Lawyers (214) 696-0021
This is the Dallas, Texas law firm of David L. Leon, P.C.
Looking for the New York office of David L. Leon?
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Translator
Friday, September 3, 2:32 am