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
As attorneys, we protect our clients with the contracts we write, the clauses we negotiate, and the words we choose. However, words are not magic and not the end of the discussion in any legal analysis or dispute. The words are a road map and documentation of what the parties intended the legal relationship to be, but they aren’t the “last word,” so to speak, in most instances. 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
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
It’s that time of year again when most franchisors are starting to finalize their FDD and think about how to show their 2020 unit level results in their Item 19. I have been asked this question by enough clients over the last few months that I thought it made sense to share our perspective. For starters, Covid-19 didn’t impact franchisors equally. By Tom Spadea
I might be dating myself by recalling the anti-drug ads from the ‘80s and trying to relate them to franchising. The relevancy in my mind comes from the fact that restraint and saying no to something that feels good in the near term but will cause long term pain is much easier said than done. By Tom Spadea