For many of our clients, especially founders who have built their original business from the ground up, delegating decisions and authority is a constant struggle. It’s understandable, as the founders have historical and intimate knowledge of the brand and want to continue to shape and mold it as it grows. 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, and so on. But the second, and increasingly more important as your system grows, is the business of franchising. By Tom Spadea
Many of our early-stage emerging franchisor clients have been getting calls from private equity groups looking to make an investment. The reaction ranges from skeptical: “What would private equity want with me?” to irrational exuberance. A middle approach is warranted. The key is to understand the rationale of the caller. By Tom Spadea
As the old saying goes, the best time to plant a tree was 20 years ago. The next best time is today. 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. By Tom Spadea
Effective communication is not just about what is said or written, but how well it is heard, understood, and retained. As a franchise lawyer, we spend many hours with our clients, trying to turn their business model and vision into readable, unambiguous, and enforceable agreements. By Tom Spadea
Why do customers buy from your franchisees? That should be the question at the root of every decision a franchisor makes. Does the system continue to deliver the brand promise that created the original profitable unit that pushed the founder into franchising? By Tom Spadea
Many of our franchisor clients are run by a dynamic and charismatic founder with the vision and passion to lead the brand through the wild and unpredictable ride of franchise growth. By Tom Spadea
It is so tempting for a franchisor to only tout what they do well, the good decisions they have made, and the incredible systems they have built. Although it may sound counterintuitive, a big part of the value of experienced brands comes from all the things they didn’t do well over the years. By Tom Spadea
As a franchise attorney, I am often asked what makes a franchise system succeed. What separates the brands that grow past the point of royalty breakeven and get on track for explosive exponential growth? By Tom Spadea
As we wrap up another busy FDD renewal season, I am struck how often the “total investment” tension of Item 7 in the FDD is discussed and in my opinion misunderstood and miscalculated. By Tom Spadea