There are many steps that should be taken before buying a franchise. The most-important is to read the entire Franchise Disclosure Document or “FDD” (that lengthy document that the franchisor provided to you, probably by emailing a .pdf copy to you). If you’re serious about this franchise, you should also have a lawyer who is experienced in franchising review the FDD; there are lots of issues an experienced franchise lawyer can spot that you might miss.  After you have read the FDD, it is very important that you call franchisees (in a small system, you may be able to call... READ MORE

By Brian H. Cole, Franchise and Distribution Law For anyone considering starting a new business, there are many advantages to buying a franchise. Some of the most important are the guidance and training provided by the franchisor. The franchisor can help choose a location, provide guidance on the necessary equipment and inventory needed, and conduct a training class that compresses what could otherwise be a long period of trial-and-error learning into a class (or series of classes). But before buying any franchise, it is critical to evaluate the franchise opportunity to be certain that it’s the best option. There are... READ MORE

The California legislature has passed, and Governor Newsom has signed into law, AB257—the “Fast Food Accountability and Standards Recovery Act” or “FAST Recovery Act.” The FAST Recovery Act tentatively establishes a new Fast Food Council within the California Department of Industrial Relations, but the council will not have full authority until the Director of Industrial Relations receives a petition signed by at least 10,000 California fast-food employees approving creation of the council. The Fast Food Council will have ten members, eight of whom must meet certain criteria (such as representing fast-food restaurant franchisors, franchisees, or employees), and will be appointed... READ MORE