http://www.ericperkinslaw.com/index.php en eric@ericperkinslaw.com Copyright 2012 2012-02-06T02:09:03+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/whats_a_franchisee_to_do_when_its_franchisor_goes_belly_up/ http://www.ericperkinslaw.com/index.php/whats-new/post/whats_a_franchisee_to_do_when_its_franchisor_goes_belly_up/ Have you been following the troubles of the Roni Deutch Tax Center (franchisor abruptly ceased all operations) and Jackson Hewitt (bankruptcy)?  Could be attributed to a number of factors—poor economy, outdated business model hurt by the emergence of online tax preparers and software programs, among others.  For franchisees, all is not necessarily lost when a franchisor declares bankruptcy or suddenly ceases operations.  Depending upon the facts and circumstances, in some cases franchisees are allowed to continue day-to-day operations using the franchise name, logo, and system (i.e., business as usual).  In other cases, the franchise owners re-brand their business and continue operating as an independent business.  In yet other cases, a group of franchisees join forces and acquire the franchise system out of bankruptcy, typically through an owners’ cooperative or franchisee association.  None of these are quick, stress-free, or inexpensive options, but they have all been done in the past and remain viable possibilities under the right circumstances.   Franchising 2011-08-06T03:02:23+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/nasaa_advisory_offers_guidance_to_prospective_franchisees/ http://www.ericperkinslaw.com/index.php/whats-new/post/nasaa_advisory_offers_guidance_to_prospective_franchisees/ The North American Securities Administrators Association (NASAA) recently issued an advisory designed to identify important issues and risks to carefully consider before investing in a franchise.  The publication emphasizes the importance of research, due diligence, obtaining professional advice, and approaching the entire process in a business-like fashion.  The advisory can be viewed in its entirety at: http://www.nasaa.org/Investor_Education/Investor_Alerts___Tips/13910.cfm  For a typical franchisee, a franchise agreement is arguably the most important contract one will ever sign in his or her professional life, thus it is not something to be taken lightly.  In Virginia, franchisors are required by law to negotiate with prospective franchisees over many of the provisions of the franchise agreement.  So if you are considering starting a new franchised business, you should have both the incentive and the opportunity to revciew and negotiate franchise agreement terms with the franchisor.  This does not mean you will get everything you ask for (or anything you ask for), but it does mean you have a seat at the bargaining table and by going through the process, you will gain a much better understanding of the contract and the franchise relationship and, therefore, be in a better position to make an informed business decision.  Franchising 2011-03-01T20:13:33+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/virginia_franchise_forum_networking_breakfast_february_25_2011/ http://www.ericperkinslaw.com/index.php/whats-new/post/virginia_franchise_forum_networking_breakfast_february_25_2011/ VFF Roundtable: Marketing in our High-Touch, Fast-Paced Multi-Media World Join the Virginia Franchise Forum for a Franchise Roundtable on Friday, February 25, 2011, from 7:30am-9am at The Westwood Club. Registration is $20 and includes breakfast. VFF's topic of discussion for the February meeting is "Marketing in our High-Touch, Fast-Paced Multi-Media World". In this interactive session, we will cover: * How the impact of social media is influencing buying behavior * How you (franchisor and franchisee) need to think & plan differently o What franchisors need to teach and provide their owners o What the franchisee's marketing plan needs to include now * How to leverage content locally and personalize it to your advantage The speaker is Sally Witzky, Owner & Chief Marketing Strategist of Traction Group, a social media and marketing consultancy that helps franchises, dealers,retailers and small- to mid-size business owners effectively build their online brand. Sally has 20+ years marketing experience at agencies like The Martin Agency, andhas worked with companies such as Home Instead Senior Care, Mercedes-Benz, Saab, TLC Laser Eye Centers, FMC, Pleasants Hardware and Sandler Training. She can be reached at sally@tractiongroup.com or visit http://tractiongroup.com. To register or for more details, contact Jackie Carter at 804-783-9314 or jackie.carter@grcc.com. The VFF is a networking and educational group for the local franchise community (franchisors and franchisees) under the auspices of the Greater Richmond Chamber of Commerce and its Small Business Development Center .  The VFF holds quarterly networking breakfast meetings at the Westwood Club and also organizes educational programs throughout the year.  Franchising 2011-02-13T03:24:35+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/nonprofits_franchising_social_franchising/ http://www.ericperkinslaw.com/index.php/whats-new/post/nonprofits_franchising_social_franchising/ Ben and Jerry's is credited with starting the social franchise movement in the 1980s, and while the trend of nonprofit organizations investing in franchised business concepts as been slow to gain significant traction in the U.S. (there are an estimated 100 social franchise ventures currently in operation), one should not be surprised to see the trend grow in the coming years.  A recent article published by QSR discusses a recent entrant into the social franchising scene in Pittsburgh, PA and why nonprofit organizations might look to franchising opportunities as a means of developing a reliable source of cash flow and achieving some investment diversification.  The article can be viewed in its entirety at:  http://www.qsrmagazine.com/growth/churches-rec-centers-could-be-next-hot-market.  Franchising 2011-02-07T19:34:41+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/perkins_law_to_host_franchising_workshop_on_november_12_at_noon/ http://www.ericperkinslaw.com/index.php/whats-new/post/perkins_law_to_host_franchising_workshop_on_november_12_at_noon/ Thinking about starting a new business and want to learn about franchising?  Get a 60-minute crash course at a free lunch workshop, “Great Things to Know About Franchising BEFORE You Take the Plunge,” presented by local franchise attorney Eric Perkins of Perkins Law, PLLC.  Hear from a successful franchisee (Apple Spice Junction owner Mac Purrington) on the trials and tribulations of selecting a franchise, navigating the recruiting process, operating a successful franchised business, and maintaining a productive relationship with your franchisor.  Attendees will also get answers to important questions such as: What sort of impact does franchising have on our economy?  What are franchisors looking for when recruiting franchisees?  How do federal and state franchising laws protect me?  What are some good online resources to research franchises and learn more about franchising? What do franchise consultants do?  How does the franchise recruiting and sales process work?  What is a “Discovery Day”? What is one great thing about Virginia franchise law that no other state in the U.S. offers?  What are five red flags to watch out for when reviewing a Franchise Disclosure Document (FDD)? Can you negotiate changes to a franchise agreement? For more information or to register, contact Eric Perkins at (804) 205-5162 or eric@ericperkinslaw.com.  The workshop (including lunch) is free, but space is limited and advance registration is required. Franchising 2010-10-02T02:45:36+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/franchisors_continue_to_offer_concessions_to_attract_prospects/ http://www.ericperkinslaw.com/index.php/whats-new/post/franchisors_continue_to_offer_concessions_to_attract_prospects/ Many franchisors continue to have a tough time selling franchises and are offering discounts, financing assistance, no-royalty periods, and other creative concessions to attract prospective franchisees.  One recent example is Fantastic Sams, which just announced a significant reduction in its initial franchise fee.  Read more here:  The Salt Lake Tribune (Utah). Franchising 2010-05-19T19:36:43+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/kudos_to_the_state_of_wisconsin--electronic_franchise_registration_filing_s/ http://www.ericperkinslaw.com/index.php/whats-new/post/kudos_to_the_state_of_wisconsin--electronic_franchise_registration_filing_s/   The Wisconsin Department of Financial Institutions recently became the first state in the nation to announce the debut of an electronic filing system allowing franchisors to submit registration applications online. The new filing system is scheduled to go online this month. Online filings should improve efficiency, thereby saving franchisors time and money as they navigate the registration process in order to sell franchises in the state of Wisconsin.  Hopefully, the other dozen or so "registration" states will follow suit. For additional information, please see the Wisconsin Department of Financial Institution’s website at: www.wdfi.org/fi/securities/franchise/. Franchising 2010-01-03T18:50:25+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/see_eric_perkins_quoted_in_richmond_times_dispatch_franchising_article/ http://www.ericperkinslaw.com/index.php/whats-new/post/see_eric_perkins_quoted_in_richmond_times_dispatch_franchising_article/ The cover story in Section D (Moneywise) of today's Richmond Times Dispatch is an article by Iris Taylor discussing the franchise industry's performance in 2009 and its outlook for 2010.  Richmond franchise attorney Eric Perkins is quoted in the article and offers several tips for those considering buying or starting a franchised business.  Read the story online at  http://www2.timesdispatch.com/rtd/business/local/article/FRAN03G2_20100102-182405/314980/. Franchising 2010-01-03T18:36:48+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/perkins_recognized_for_franchising_work/ http://www.ericperkinslaw.com/index.php/whats-new/post/perkins_recognized_for_franchising_work/ Richmond business attorney Eric Perkins was recently selected by his peers for inclusion in The Best Lawyers in America® 2010 in the field of franchising (Copyright 2009 by Woodward/White, Inc., of Aiken, S.C.). Franchising 2009-08-09T01:35:10+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/franchisor_alert--be_on_the_lookout_for_ny_state_dept._of_taxation_and_fina/ http://www.ericperkinslaw.com/index.php/whats-new/post/franchisor_alert--be_on_the_lookout_for_ny_state_dept._of_taxation_and_fina/ As a result of recently enacted legislation in New York, franchisors will be required to submit annual transaction information electronically to the NY State Department of Taxation and Finance pertaining to their New York franchisees.  The required information includes:  (i) gross sales of franchisees as reported by franchisees to the franchisor; (ii) total amount of sales by the franchisor to the franchisees; (iii) any income reported to the franchisor by each franchisee; (iv) the franchisee's name, address, certificate of authority, or federal identification number; and (v) any other information required by the state tax commissioner. Last month, franchisors began receiving initial requests from New York Dept. of Taxation and Finance officials for franchisee name and address information.  Generally speaking, the new franchisor information returns will be due annually on March 20, but the first wave of returns under this new law (for the period from March 1, 2009 through August 31, 2009) are due on September 20, 2009. Grumblings within the franchise community have already started to emerge.  Concerns range from the obvious--increased compliance costs and audit risk--to "bigger picture" concerns such as the potential impact of this new law on state sales tax nexus arguments detrimental to franchisors. For franchisors with franchised locations in the state of New York, check your mailbox for a letter from the NY State Department of Taxation and Finance.  For new franchisors considering where to expand, take note that the cost of franchising in New York appears to have just gone up.  Stay tuned for further developments. Franchising 2009-06-27T16:12:36+00:00