franchise law firm

29 04, 2024

LEGAL: Measured Growth Wins

2024-04-30T16:04:33-04:00April 29th, 2024|Tags: , , , |

Most new franchisors spend a tremendous amount of time, money and energy on how to sign up the greatest number of franchisees in the shortest amount of time. Everyone wants to get into high gear right out of the gate. Starvation is one of the biggest fears and motivators for a new franchisor who has just spent months or even years and perhaps well over $100,000 to launch their franchise system. By Tom Spadea

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28 03, 2024

LEGAL: Should My Corporate Stores Pay Royalties?

2024-03-28T15:16:44-04:00March 28th, 2024|Tags: , , , , , |

Absolutely! 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

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29 02, 2024

LEGAL: Create a Strong Brand Name

2024-02-29T14:50:41-05:00February 29th, 2024|Tags: , , , , |

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

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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

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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

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