There has been a fair amount of discussion in the franchising world recently about anti-poaching. Anti-poaching refers to provisions in franchise agreement that prohibit a franchisee from hiring the employees of the franchisor or the employees of other franchisees in the franchise system. A typical in-term covenant might read as follows:
So you want to franchise your business... Part 4 of 4
Part 1 of this blog series addressed business issues to consider in deciding whether to franchise your business and preparations to be made before launching a franchise program. Part 2 of this blog series addressed preparation of the legal documents required under federal and state franchise law - the Franchise Agreement and the Franchise Disclosure Document ("FDD"). Part 3 of this blog series addressed state registration of franchises. This blog addresses compliance with franchise laws as a new franchisor begins offering and selling franchises. In addition to franchise disclosure and registration requirements, the federal and state franchise laws cover actions that must be taken when offering and selling franchises and actions that are prohibited in the offer and sale of franchises.
So you want to franchise your business... Part 3 of 4
Part 1 of this blog series addressed business issues to consider in deciding whether to franchise your business and preparations to be made before launching a franchise program. Part 2 of this blog series addressed preparation of the legal documents required under federal and state franchise law - the Franchise Agreement and the Franchise Disclosure Document. This blog addresses state registration of franchises.
So you want to franchise your business... Part 2 of 4
Part 1 of this blog series addressed business issues to consider in deciding whether to franchise your business and preparations to be made before launching a franchise program. This blog assumes that you have made the decision to franchise your business and you are ready to engage a franchise attorney to assist you with the legal compliance. The first step in legal compliance is to prepare a Franchise Agreement and the Franchise Disclosure Document required by federal and state franchise laws.
So you want to franchise your business.... Part 1 of 4
You may be considering franchising your business for a number of reasons. You may want to expand your business but don't have the capital to open numerous additional locations on your own. You may have people approaching you about buying a franchise because they love your business concept. You may like the idea of the brand and business you have built opening up in locations all over the country. However you come to the point of considering franchising, there are some initial steps to take before you launch into establishing a franchise program.
Two-Part Series: Leases from the Franchisor's Perspective - Part 2
Details on the Itemized List
State Franchise Registration Renewals in 2018
It will soon be that time of year when we will be working with our franchisor clients to prepare the required year-end updates to their Franchise Disclosure Document and file state registration renewal applications.
Illinois Businesses - Be Aware of the New Illinois Freedom to Work Act
The Illinois Freedom to Work Act went into effect on January 1, 2017 (820 ILCS 90). The Act is said to have been passed in response to Jimmy John's requiring employees to sign non-compete agreements that restricted the employees from being employed at businesses located with 2 or 3 miles of Jimmy John's locations if the business obtained more than 10% of their revenue from the sale of menu items similar to the Jimmy John's menu items.
FDA's Menu Labeling Rule Delayed
The U.S. Food and Drug Administration's Menu Labeling Rule, which was set to go into effect on May 5, 2017, has been delayed. The Menu Labeling Rule called for businesses in the food service industry (e.g. restaurants, grocery and convenience stores) with 20 or more locations to post calorie counts on their menu boards. This would apply to most food service franchise systems. The Rule is now set to go into effect on May 7, 2018.
