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Tips on Buying an Existing Franchise

Buying an existing franchise has some key advantages over buying an existing main street business.  Like all business decisions, the short term and long term goals of the purchaser should determine the right fit for a business to buy.  If the buyer’s goal is lifestyle, control (compared to a job) and predictable cash flow than a franchise has some distinct advantages.  However, there are also some hidden cost and considerations that are unique to franchise transfers. Read more »

NLRB McDonalds Decision Could Impact Franchisors Nationwide

The National Labor Relations Board (NLRB) Office of General Counsel authorized complaints filed by employees of McDonalds franchisees could also be held against McDonalds USA, LLC, the franchisor. This has tremendous significance for all franchisors and could have far reaching consequences in the future for franchisors nationwide. NLRB held that McDonalds corporate is a "joint employer" with its franchisees. If this decision stands up, franchisors, and McDonalds in particular, may be held liable for all the infractions of its franchisees, possibly extending to joint liability for other types of actions by its franchisees.  

McDonalds and the International Franchise Association (IFA) plan to appeal any rulings from the NLRB that enforce this posture. Clearly, if pursued, this ruling will open the door for many types of decisions against a franchisor for the actions of its franchisees.   Read more »

Radio Interview Given By Nancy Lanard On What To Look for in a Franchise Disclosure Document

Nancy Lanard was selected to be interviewed on the Blog Talk Radio program "Franchise Focus" by Rick Bisio on the topic of what someone should look for in a Franchise Disclosure Document (FDD).  Nancy Lanard's interview (given in two parts) covered such topics as what is the Franchise Disclosure Document, why is it important to review it, what does each of the items to the Franchise Disclosure Document cover and each of their importance.  Nancy Lanard's radio interviews shed important light on each item of the Franchise Disclosure Document/FDD and are a must listen for any prospective franchisee. Read more »

Pennsylvania HB 1620, the "Responsible Franchise Practices Bill"

Pennsylvania HB 1620, known as the “Responsible Franchise Practices Bill”, attempts to bring a balance to the franchisor/franchisee relationship for Pennsylvania franchisees. Pennsylvania, a state that currently does not have a franchise law, has a proposed bill that will have a tremendous impact on the franchise community. The bill attempts to make franchise agreements more equitable and fair.

The stated purpose of the bill is to guaranty fairness in the franchisee/franchisor relationship and eliminate "arbitrariness, coercion, and duress."  The bill poses limitations on a franchisor’s rights to terminate a franchise agreement and the reasons a franchisor may terminate the agreement.  The proposed legislation also poses limitations on a franchisor's right not to renew a franchise agreement. Additionally the bill restricts a franchisor's ability to contractually limit a franchisee’s rights to transfer the franchise, among others. Read more »

Key Takeaways from the Nov 13th PFA Meeting on Recruiting, Hiring & Reducing Turnover of Key Employees

Last month the Philadelphia Franchise Association (PFA) had a terrific meeting at Maggiano's in downtown Philadelphia.  I want to again thank our terrific panelist, Tom Monaghan, Steve Beagelman and Mr. Ade Lawal.  Each brought excellent stories and practical advice on how to recruit, hire and train key employees.

I believe the most insightful part of the presentation was the insistence by all the panelist that the hiring process must be exactly that, a process.  If a company can define what steps it needs to take and then follow those steps they will have a much better chance at being successful than those companies that wing it each time they have a need for a new team member.

Having a defined process will enable companies to refine and improve that process over time.  Key elements to a good process that we discussed were:

- Written and consistent interview questions

- Simple outside and objective tests such as background, IQ, personality test, etc. (I was intrigued to learn that some really helpful tests can be done for very little money) Read more »

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