What’s the Deal with Five Year Franchise Terms?

In the past few years I have noticed a trend toward five year franchise terms in the Franchise Agreements, as opposed to the traditional ten year terms. What is driving this trend, and whom does it benefit? In my opinion, the shorter term is not beneficial to the...

Franchise Life Hacks: Due Diligence

The franchise business model is a very solid, time-tested vehicle to prosperity – if approached properly! However, far too many investors, in my experience, make wrong or poorly informed assumptions about their chosen franchisor, which can lead them to foolishly spend...

Joint Employer Doctrine Clarified by Court of Appeals

Regulars to this blog will observe that the control issue within franchising is a running theme and involves the Joint Employer Doctrine, which I discussed and updated in previous articles. Boiled down to its essence, the doctrine holds that if a Franchisor exerts...

Court Denies Dunkin’s Cross-Default Termination Remedy

In 2017, I briefed a decision from the same action. See, 3rd Circuit Upholds Grant of Summary Judgment in Favor of Franchise Cancellation Due to Fraud by the Franchisee In the previously reported summary judgment matter, the 3rd Circuit upheld the District Court’s...

Denied Franchise Applicant was Not Required to Arbitrate

Plaintiff filed an online application with Subway’s seeking to become a Franchisee. The application included the following term: “I agree that the arbitration will be administered by either the American Arbitration Association or its successor (‘AAA’) or the American...