“Franchise Today” Kicks Off Fourth Annual Franchise Legal Series

Houston, Texas – “Franchise Today” radio show begins its fourth annual “Franchise Legal” series this Thursday, April 11 and culminates with the IFA Symposium (May 5-7) recap on May 30. The eight-week series – double the content since its debut in 2010 – will deliver compelling insight from the perspective of leading legal minds within the franchising world.

“Each year we continue to expand the ‘Legal’ series based on growing listenership and the enthusiastic response from the franchising community,” said “Franchise Today” host Paul Segreto. “We are thrilled to have the opportunity to share the expertise of incredibly talented and well-respected leaders in the profession. The value they bring to our audience is immeasurable.”

Segreto and his guests will delve into the day-to-day legal issues facing franchisors as well as timely hot topics – private equity in franchising, social media legal considerations, franchise sales best practices (from a legal perspective), franchisor litigation issues, and international franchising challenges. “Listeners will walk away with a deeper understanding of legal matters and tangible advice and recommendations to help franchisors succeed in a competitive and litigious business environment,” said Segreto.

In line with presenting the franchise community with best practices and advice, the “Franchise Legal” series features an impressive lineup: Michael Laidhold of Plave Koch PLC, Lee Plave of Plave Koch PLC, Amy Cheng of Cheng Cohen LLC, Barry Heller of DLA Piper LLP, Mark Kirsch of Gray Plant Mooty LLP, Lane Fisher of Fisher Zucker LLC and Jonathan Redgrave of Redgrave LLP. Rounding out the two-month series with an IFA Legal Symposium Recap will be IFA’s Dean Heyl, director state government relations and public policy and tax counsel. Though several IFA staff members have contributed to “Franchise Today,” Heyl’s appearance marks the first time an IFA staff attorney will participate as part of the ‘Legal’ series.

Hosted by Paul Segreto, president and CEO of Franchise Foundry, the show’s newly expanded format is a series of multiple episodes with industry leaders, experts and key players sharing their unique perspectives on the chosen topic. This year’s series also included “Voices in Franchising” featuring IFA President and CEO Steve Caldeira and “Franchise Finance & Multi-Unit Franchising” in March. New to the “Franchise Today” lineup is a summer-long Franchisor Spotlight Series where some of the leading franchisors share best practices they’ve implemented for improved unit-economics and franchise growth. Additionally, Segreto is planning six to eight special event broadcasts throughout the year for a total of approximately 60 live shows in 2013.

For more information or to listen to live and archived shows, please visit http://www.blogtalkradio.com/franchisetodayshow.

Heavy-hitters in Franchising on Franchise Today in 2013

Media Contact: Sara Schulte, Fishman Public Relations, (847) 945-1300 ext. 256 or sschulte@fishmanpr.com
For Immediate Release

“Franchise Today” Announces 2013 Interview Schedule Featuring Heavy-Hitters in Franchising
Franchise radio show announces new format with in-depth, multi-part series

Houston, Texas – January 25, 2013 – “Franchise Today,” the franchise-focused radio show on Blogtalkradio.com, kicks off 2013 with a new multi-part series format featuring some of the most respected names in franchising. Following the recent merger between franchise development companies FranchisEssentials and Franchise Foundry, the platform is now a production of the latter and is poised to continue its growth within the industry.

Hosted by Paul Segreto, president and CEO of Franchise Foundry, the show’s newly expanded format continues to focus on presenting the franchise community with best practices and advice on various aspects of management and development. Each series of multiple episodes will feature industry leaders, experts and key players sharing their unique perspectives on the chosen topic. The first of nine themes centered on marketing and included guests such as CEO of PostNet Steve Greenbaum on promoting your brand, Jeremy LaDuque of ElementsLocal on the challenges and opportunities of online marketing, Steve Baxter of Satmetrix on the customer experience as a key marketing component and Sandy Lechner of SproutLoud on the brand management value proposition.

“Our goal with ‘Franchise Today’ is to help educate franchisors by providing volumes of information on the most pertinent issues in the industry,” said Segreto. “Over the past four years, we’ve been able to build a community of listeners both here and internationally that is hungry for knowledge and best practices. I’m excited to be part of a resource that can aid franchise professionals and create success at all levels.”

Upcoming Q1 series include February’s “Voices of Franchising” featuring IFA President and CEO Steve Caldeira, just days before the IFA convention, as well as Nancy Weingartner from Franchise Times; “Franchise Finance & Multi-Unit Franchising” in March; and the fourth annual “Franchise Legal Series” made up of eight parts culminating with the IFA Symposium recap for April and May. New to the Franchise Today lineup is a summer-long Franchisor Spotlight Series where some of the leading franchisors share best practices they’ve implemented for improved unit-economics and franchise growth. Additionally, Segreto is planning six to eight special event broadcasts throughout the year for a total of approximately 60 live shows in 2013.

For more information or to listen to live and archived shows, please visit http://www.blogtalkradio.com/franchisetodayshow.

About “Franchise Today”:

Hosted by industry veteran Paul Segreto, “Franchise Today” is a production of Franchise Foundry, a full-service franchise management and development company. The radio show has grown to thousands of listeners, including international, and focuses on sharing advice and best practices from the leaders of the franchise community. Segreto and his team’s goal is to educate franchise professionals and help franchisors succeed at all levels. The new format promises multi-part series throughout the year as well as several special event broadcasts. Franchise Foundry also co-produces FranSummit, a social media and digital marketing workshop. To listen to “Franchise Today” live or hear archived shows, visit http://www.blogtalkradio.com/franchisetodayshow.

How would your franchisees answer this question, “Does your franchisor have integrity?”

Integrity is what you do when nobody is watching!

Some franchisors appear to believe that when a person asks for the franchisor’s FDD they need not give it.

Why? Here is, slightly edited a franchisor’s broker’s answer,  which appeared on a major business social network.

“Because they [franchisor] are not required to provide an FDD upon request.

Here is the excerpt from the FTC 2008 updated ruling:

“Upon reasonable request, franchisors also must furnish a disclosure document to a prospective franchisee earlier in the sales process than 14 calendar days before the franchisee signs or pays.

The failure to comply with a reasonable request for an earlier delivery is an independent violation of the Rule. This does not mean that a franchisor must tender a disclosure document to any person who asks for a copy.

Rather, it applies where the parties have taken steps to begin the sales process.”

The problem is that many franchisors begin a validation process with the prospective franchisee, but believe that they haven’t “taken steps to begin the sales process”.

But, the way I see it, is if a candidate is on a validation call then I think it’s hard to dispute that you’re not knee deep in the sales process!

Some brokers will argue otherwise.

“If I took a lead to many franchisors and after the first call said to the franchisor, “the candidate would like to reasonably request an FDD at this time” most of them WOULD indeed laugh or explain their “sales process” to me where the FDD is provided after the application which comes after the webinars and other phone calls.

I can only think of a handful of times where an FDD was provided after the first call with a franchisor.”

Irrespective of FTC Franchise Rule enforcement, it’s not the candidate’s duty to know that they are entitled to an FDD upon reasonable request, it is the duty of the franchisor to comply with the FTC Rule.

If you as a broker or the franchisor has a bona fide prospect considering a particular franchise you as the broker must communicate an FDD request to the franchisor. The franchisor must fulfill the request and track and record all FDD requests.

Even if the FTC is not watching, it is not okay for franchisors and brokers to break the rule. I recommend taking a look at The Franchise Sellers Handbook. It’s a great resource and most likely will answer a lot of questions that you may have.

Remember, integrity is what you do when nobody is watching!

*Reprinted from International of Association Franchisees and Dealers Feb 2012

At what point do you believe a Financial Performance Representation crosses the line outside franchise disclosure requirements?

As discussed at various break-out sessions during the recent Franchise Consumer Marketing Conference in San Francisco, social media has created many opportunities to present and discuss franchise opportunities across and through multiple channels, often linking from one social media platform to another. As many franchisors jockey for a competitive edge and increase their social media efforts, it’s important not to lose sight of franchise disclosure requirements.

The practice of embedding financial information within online press releases, blogs and even within Facebook posts, appears to be growing. Certainly, publishing this information by itself doesn’t create an FPR. But, directly or indirectly referring candidates to the information is an FPR, and if the information is not part of a franchisor’s Item 19, becomes an improper FPR.

Considering the linking capabilities within social media, often to the point of creating a cross-platform, multi-tiered effect, some so-called, self-professed industry professionals apparently believe they can get away with improper FPRs. Especially, as social media is still relatively new and growing into new areas, misunderstood by many, and virtually unmonitored by any authority. It appears the thought is if enforcement of franchise disclosure is lacking in traditional areas, social media has become the new wild west!

Beyond the obvious illicit practices and potential ramifications to unsuspecting franchise candidates, what also causes reason for concern is the impression it makes upon startup franchisors that follow suit. Often not even realizing the practice may be improper. Afterall, they see it being done by individuals who they believe are franchise professionals. So, why not follow the same practice that they unsuspectingly come to believe is a best practice?

Sure, everyone is responsible for their own actions, and ignorance is not a legal defense. However, if these illicit practices continue within franchising, more and more will participate to the point of it becoming a common practice, with many believing it has become a best practice. Momentum picks up with so-called thought-leaders promoting the practice as an effective lead generation strategy, influencing even more franchisors. Some will be unsuspecting. Some will just jump on the bandwagon.

At what point will these practices be considered to be out-of-control and intolerable, and detrimental to franchising? To me, there is no time like the present…

Social Media Policies Within Franchising: The Debate Continues

In the continuing debate about making the case for social media policies within franchising, below is an article by Attorney, Chad Finkelstein, expressing his opinion on the matter. So, as a franchise professional, we’d love to hear your opinion as well!

Franchising and Social Media
by Chad Finkelstein
As posted: Financial Post on October 25, 2010

Whether you are a franchisor or a franchisee, the realities of social media likely already affect you. Franchisors need to determine whether, from a marketing perspective, it makes sense for them to have profiles on forum such as Facebook, Twitter and MySpace. Many already do, but depending on the nature of your business, it is not always an ideal method of promotion.

If that type of online marketing suits the strategies of the franchise system, then the next question to ask is whether franchisees should be permitted to have their own social media websites – for instance, a Facebook page for that particular franchised location. The franchisor will need to decide whether the benefits of widespread marketing on these popular websites outweigh the costs of giving its franchisees that much control over advertising the brand.

Accordingly, it is a good idea for franchisors to develop social media policies, and for franchisees to ensure that those policies are not too restrictive. If you are an existing franchisor or franchisee, your franchise agreement likely already states that franchisees cannot conduct any internet advertising without the consent of the franchisor. While that may have made sense at the time it was drafted and agreed to, the practical realities of business today means that franchise law in Canada has to evolve to reflect new technologies and marketing platforms.

As a result, franchisors should consider adding social media policies to their standard agreements, and franchisees should consider requesting them where they do not already exist, so that the franchise system as a whole can benefit from this new world of online marketing.

Chad Finkelstein is a franchise lawyer at Gowling Lafleur Henderson LLP in Toronto.