franchise attorney

29 11, 2023

LEGAL: Is Your Business ‘Franchisable’?

2023-11-30T10:13:00-05:00November 29th, 2023|Tags: , , , |

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


27 06, 2023

What Business Are You in?

2023-06-27T16:19:10-04:00June 27th, 2023|Tags: , , , , , |

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


30 04, 2023

Territory May Be Your Scarcest Resource: Treat it Accordingly

2023-04-30T19:51:18-04:00April 30th, 2023|Tags: , , , |

An often overlooked metric for many franchisors is the number of outstanding territories they have yet to award. For most new franchisors, selling out of territories seems like such a distant problem that they don’t give it any thought. When they think of scarcity, they think about franchisee lead scarcity. However, I would challenge franchisors to flip the equation if their goal is to maximize the long-term value of the brand. By Tom Spadea


31 03, 2023

Hidden Treasure

2023-03-31T10:45:21-04:00March 31st, 2023|Tags: |

Great unit economics will drive a franchise system to growth and profitability. Each franchised location is a building block to the overall financial metrics. Having advised hundreds of franchisors over the years, one area that many franchisors neglect is encouraging low performing franchisees to transition the business to a new owner. By  Tom Spadea


27 02, 2023

Legal: Should My Corporate Stores Pay Royalties?

2023-02-27T14:26:24-05:00February 27th, 2023|Tags: , , , , , , |

If you make $100 in profit, that $100 on the open market is worth the multiple of the earnings in the business it is generated. If you pay that $100 in royalties to the franchisor, that $100 becomes an expense to your operating unit and profit to the franchisor. By Tom Spadea