My partners and I have launched hundreds of new franchise systems over the years. One of the most difficult conversations we often must have with a new franchisor is telling them that they don’t have a protectable brand name, or that their brand name is owned by someone else. By Tom Spadea
Most people understand the basic single or multi-unit franchisee who signs a franchise agreement with a franchisor to operate the brand in one or more territories. The next step up in complexity is the Area Representative Agreement, commonly known as an ARA, and the Master Franchise Agreement. By Tom Spadea
As the old saying goes, ‘The best time to plant a tree was 20 years ago. The second best time is now.’ Many emerging and startup franchisors hold off on collecting their brand fund fees because they don’t have a plan for the money, and they are still getting used to being franchisors. Brands that put off collecting it when they start, struggle with the implementation of the brand fund on franchisees who have been in the system for years and have grown accustomed to not paying into the fund. It can become a very difficult and politically sensitive issue to start charging after years of never charging. By Tom Spadea
As a franchise attorney who has launched hundreds of brands over the last decade, I get asked this question a lot by people exploring whether they want to franchise and those who have launched a brand but have struggled to get traction. There are key business attributes that make a business “franchisable”, however, the first question is more about the founder than the fundamentals of the business. Are you ready and able to be a good franchisor? By Tom Spadea
I was asked by a franchisor client the other day what they should do if they had three good candidates for the same territory. What a great problem to have for sure and, in fact, I wouldn’t even really define it as a problem. By Tom Spadea
At some point, everyone involved in franchise development is going to be asked this question by a prospect. It is not unreasonable for a prospective franchisee to want to know the answer. By Tom Spadea
At the risk of really getting into the weeds on a very narrow issue, when was the last time you gave any serious thought to the term length in your franchise agreement? By Tom Spadea
Seems like a simple enough question. However, I think many franchisors forget they are in two businesses. One is the underlying subject matter expert on the service provided to consumers, such as a restaurant, gym, roofing, etc. But the second, and increasingly more important, as your system grows, is the business of franchising. By Tom Spadea
A decade before Spadea Lignana was named the No. 1 franchise law firm by Entrepreneur magazine, Tom Spadea was selling franchises during the day and going to law school at night. By Brianna Bohn
Founders of franchise systems spend time, treasure and pain to get their system to the point that it has significant enterprise value. Many have a numerical goal for that value and a timeline for when they want to harvest their years of hard work. By Tom Spadea