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Finding Balance in Franchise Agreements
“Any notion that granting a franchise is a privilege needs to be struck from the conversation. We are not commodities. We are partners, and a franchisor has the obligation to help us succeed,” stated multi-brand franchise operator Aziz Hashim during the opening panel discussion at the IFA's 46th Annual Legal Symposium in Washington, DC, in May.
This assessment came as Hashim and co-panelist Kenneth D. Walker, CFE, the past IFA Chairman of the Board and a former CEO of Driven Brands, Inc. (franchisor of Meineke Car Care Centers), reflected on today's hot-button issues in the franchisor-franchisee relationship. With moderator Joel Buckberg, of counsel with Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, Hashim and Walker discussed everything from roadblocks for successful operators to sell their franchises, to proper use of advertising funds, to whether franchise executives should appear on the TV show “Undercover Boss.”
While Hashim and Walker represent, to some degree, opposite sides of the spectrum, they agreed on the bottom-line imperatives for the industry's future success: clarity and transparency in franchise contracts, fair handling of conflicts, and a sense of genuine partnership. “There's a misconception that only franchisors are stewards of the brand. It's not true; franchisees are very interested in the success of the brand and the [language of the] contract as well,” said Hashim.
Getting the relationship right is more important than ever because franchisors are working with sophisticated, multi-brand operators that have a wide choice of where to invest their capital. “It's about core values and a vision,” Walker said. “Make sure you have a vision of what the business should look like to customers, and stay with it. This starts before the franchisee training program and even before the franchise sales cycle. And it doesn't end with training, either. In magazine articles, at your conventions ' everywhere ' you must be consistent in your concept.”
Working Together for Growth
Use of advertising funds is one area in which a franchisor can build a relationship with franchisees through consultation, said the panelists. “There's no right way to manage an ad fund,” said Walker. “Some brands benefit from robust television advertising, but others do not, and might be effective with couponing. Some are better on social media.”
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.