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Carter & Tani Legal Blog


Changes to the Indiana Franchise Law were recently passed and become effective on July 1, 2020. One of those changes is the addition of a duty on the part of the franchisor to file an amendment application and the amended Franchise Disclosure Document with the state within 30 days after the franchise undergoes any material change. Under the current law, if a franchisor's Franchise Disclosure Document was amended during the registration year for material changes, the franchisor was not required to file an amendment application with Indiana in order to begin using the amended FDD in that state.

Franchisor Considerations in Light of the COVID-19 Global Pandemic

Earlier this week, we listened to a webinar sponsored by the American Bar Association Forum on Franchising on Franchising and COVID-19. While they obviously could not put forth any hard and fast rules about what franchisors should be doing during this crisis, they gave us some good food for thought that we wanted to share with you.

Check for complaints before entering a franchise agreement

Investing a franchise is often a great opportunity, but not always. Like any business structure, some opportunities involve reliable parties, while others involve disreputable or fraudulent parties. A skilled and knowledgable franchisor may find a number of ways to hide business tactics that might make a potential investor nervous.

If you are considering a franchise opportunity, it is wise to invest your time and resources in carefully vetting the business and its place in the community. The value of a franchise rests on both the quality of its product or service and the clout of the franchise's name. Keeping your rights and your resources secure is much easier with a clear legal strategy and detailed research within the franchise's community.

The different types of franchises

In an increasingly globalized world, franchises are more popular than ever. Businesses often thrive when they are instantly recognized and feel familiar to consumers. This is especially true when it comes the franchised brands such as restaurants, bars, fast-food establishments, and retail stores.

If you are curious about taking advantage of the opportunities that franchising presents as a business person, make sure that you have a good understanding of the different types of franchises available. You should also have a clear overview of how franchises are set up from a legal perspective.

Franchise points to consider before signing a contract

Deciding that you want to open a franchise is a big step toward owning a business. You have to ensure that you make the best decision for your situation when you're trying to narrow down your options. There are several things that you need to review and focus on before you sign the franchise contract.

One of the most important factors to consider is the level of trust that you have with the franchisor. This is done through open communication. You have to pay close attention to what's being said and what information is being presented to you. It is common for franchisors to put their company in a favorable light but be wary if you notice anything that seems too good to be true.

Indiana Joins States Requiring Online Franchise Filings

The Indiana Secretary of State, Securities Division recently announced that it has launched its Indiana Securities Portal and that as of January 1, 2020, all franchise registration applications must be filed electronically through the Portal. Any paper filings or e-mail filings sent to the IN Securities Division will be sent back to the sender.

Associate Alissa Carter Verson Publishes Article in DCBA Brief

Our Associate, Alissa Carter Verson, recently published an article in the DuPage County Bar Assocation's November issue of the DCBA Brief entitled "A New Era of Accessibility: Website Compliance with the Americans with Disabilities Act." 

Attorneys Attend 2019 ABA Forum on Franchising

Christine, Doris and Alissa have just returned from Denver after attending the 2019 American Bar Association Forum on Franchising annual 2-day franchise law seminar. While the attorneys at Carter & Tani have many years of experience and are seasoned franchise law attorneys, they make it a point each year to attend this annual franchise law seminar in order to keep current with new developments in the law that affect franchising and their franchise clients. Topics this year included updates on joint employer issues (including a workshop on the newly passed California Assembly Bill 5), anti-poaching cases and regulatory enforcement, application of new technology in franchise systems, and the current review of the FTC Rule. The annual update on franchise case law and the annual regulatory update presented by state franchise regulators is always informative. In addition, Alissa attended an intensive half-day workshop on the creation of a start-up franchise system. If you would like to hear more about the seminar and the new developments discussed, contact one of our attorneys.

Learn More About How We Can Help Protect And Grow Your Business

Call our firm at 630-668-2135 to discuss your franchise and business needs with an attorney. We have extensive experience representing national franchisers, regional subfranchisors and Illinois franchisees and businesses. Contact us today to learn more about how we can help you optimize the potential of your franchise. Our offices are conveniently located in the Chicago suburb of Wheaton, Illinois.

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402 E. Roosevelt Road
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Wheaton, IL 60187-5588

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