Spadea Lignana

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


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


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


30 12, 2023

LEGAL: When Should You Start Your Brand Fund? TODAY!

2023-12-30T19:39:42-05:00December 30th, 2023|Tags: , , |

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


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