On April 26, 2025, the U.S. Small Business Administration (SBA) announced that it will reinstate the SBA Franchise Directory, effective June 1, 2025. This decision marks a significant policy shift following the discontinuation of the directory in 2023 established in 2018. Urgent action must be undertaken if franchisors want their franchisees to qualify for SBA
So, you have your Franchise Disclosure Documents (“FDD”) and other related agreements in order and ready to start selling your newly created franchise system. You may consider advertising through various channels with catchy promises of success and profits and slogans such as “Join the Franchise Frenzy: Your Ticket to Business Success Awaits!” or “Follow our
For most, the sale of a business is a new experience that requires sellers to learn many entirely foreign processes in a very short amount of time. The many steps to selling your business can be long and tedious, and chief amongst those steps in terms of length and tedium is due diligence. To those
While franchising can be a powerful way to grow a brand, the complex and varied laws and regulations governing franchising can intimidate even the most experienced businessperson seeking to expand their business.
Over the past two decades, Manning Fulton has helped over 100 franchisor clients launch, grow, and protect their brands through franchising. We can
Have you ever contemplated owning a business? How about becoming a franchisee? This brief guide will provide insights, the typical steps, and timelines into becoming a franchise owner.
Understanding the Franchising Business Model and Its Perks
Franchising is a business model that permits individuals to operate their own business under a well-established brand. As a
The franchise agreement is the legal agreement executed between the franchisor and franchisee that creates the legal foundation for the franchise relationship. It defines the parties’ rights, obligations, and protections. There is no standard form for a franchise agreement because each agreement varies greatly depending on the applicable industry and
In the trademark and copyright law world, few disputes have garnered the attention of both the legal and culinary world quite like the “Taco Tuesday” debate. The controversy revolved around the rights to a popular phrase that has been simmering for years, pitting businesses against each other and igniting a discussion around the usage of
Effective October 1, 2023, North Carolina streamlined franchisor compliance with the North Carolina Business Opportunity Act. The adopted revisions to the North Carolina Business Opportunity Act (“Act”) proposed by the North Carolina Business Law Section task force led by the author eliminate the 40+ year burden imposed on franchisors who are otherwise compliant with the
Franchise disclosure obligations and registration can carry significant costs of compliance and can be an administrative burden. Initially drafting a compliant Franchise Disclosure Document (“FDD”) is a time-intensive process. Then the franchisor must update the FDD annually for as long as it wishes to sell franchises. State registration of the franchisor and review of the FDD can further delay franchise sales. Additionally, an FDD contains confidential information that the franchisor may not wish to make public, especially if the business is a particularly sensitive to competition. Franchise laws restrict otherwise legal sales practices, such as making financial performance representations outside of Item 19, which can be another frustration for franchisors.
Exemptions to the franchise disclosure and registration laws provide both seasoned and start up franchisors the opportunity to reduce these burdens and costs by either (1) avoiding registration in a state or (2) avoiding drafting an FDD at all.
Continue Reading FTC Franchise Exemptions: Leased Departments, Petroleum Sellers, and Oral Contracts