What are Descriptive Trademarks?

So you’ve just been told that you may not be able to register your trademark because it is “descriptive.” What does that even mean? It’s my mark, why am I not allowed to register it?

The best place to start is with a quick overview of trademarks. A trademark can be classified into five different categories based on their distinctiveness: (1) generic; (2) descriptive; (3) suggestive; (4) arbitrary; and (5) fanciful. Generic marks lack the means of identifying the source of a particular good, and therefore cannot be protected as a trademark (e.g. trying to trademark the name “PEN” for selling pens). Moving up the list, you encounter suggestive (e.g. SPEEDIBAKE for frozen dough), arbitrary (e.g. APPLE for computers), and fanciful (e.g. CLOROX for bleach) marks. These three types are considered inherently distinctive and can be registered as a trademark assuming there isn’t a confusingly similar trademark already out there (you’re going to have a tough time getting a trademark for Florox, sorry).

Wait, but you skipped over descriptive marks! Don’t worry: a descriptive mark “describes an ingredient, quality, characteristic, function, feature, purpose, or use of the specified goods or services.” Descriptive marks are considered the weakest of protectable marks. But they can still be registered as long as a descriptive mark is capable of identifying the source of the goods or services. Some descriptive marks have a secondary meaning and can be registered right away, while others might have to be in use long enough for the public to develop an association with the mark and identify it with a specific product or service.

The United States Patent and Trademark Office (USPTO) maintains two registers for trademarks. The first is the Principal Register – this is the best of the best. If you’ve been using a descriptive trademark for at least five consecutive years, you can try to get that trademark on the Principal Register by arguing the mark has a secondary meaning or “acquired distinctiveness.” A good example is Bank of America – the name is descriptive in nature (if you were new to the world, it would probably sound like it could describe any bank that was in America), but it has been around so long that it has acquired distinctiveness; everyone knows which bank it refers to.  

The other register the USPTO maintains is the Supplemental Register. If you are unable to get a descriptive mark on the Principal Register, you can register it on the Supplemental Register.  The USPTO maintains this second register for trademarks that are capable of distinguishing an applicant’s goods or services, but currently don’t distinguish them enough to warrant registration on the Principal Register.  If a descriptive mark has been in use for less than five years and does not have sufficient evidence to show acquired distinctiveness, it can only be registered on the Supplemental Register.  

While the Supplemental Register doesn’t offer all the same protections as the Principal Register, pursuing a trademark registration here is still worthwhile and will afford your mark at least some of the important perks that marks on the Principal Register receive, such as:

  • Nationwide notice to third parties;
  • Permission to use the registered trademark symbol (®);
  • It may allow you to object to future trademark applications for similar marks based on the likelihood of confusion with your mark; and
  • The option to bring an action concerning the mark in the federal court.

However, you do lose some advantages by only being on the Supplemental Register as opposed to the Principal Register, including:

  • You don’t have a presumption of ownership, validity or exclusivity of the mark;
  • You can’t record the mark the with U.S. Customs to prevent importation of infringing goods;
  • The mark doesn’t become incontestable;
  • You do not benefit from a constructive use date (i.e. you cannot rely on an earlier filing date); and
  • The mark isn’t published for opposition.

While this certainly isn’t an ideal scenario for someone looking to register their mark, it is usually the best course of action for a mark that is denied principal registration due to its descriptiveness. After all, if that mark later gains recognition, you can apply again to get it registered on the Principal Register.


One of my franchisees wants to sell their business. What should I do, and what should I avoid?

Franchisors expect franchisees to remain in their system. The franchise relationship is built through significant effort by both franchisors and franchisees over a long period of time. Franchise relationships often last 30+ years. However, at some point, that relationship has to end in some fashion. The franchised business can close, the system can shut down, the relationship could be terminated, etc. One common ending is when the franchisee exits via transfer.

There are any number of reasons a franchisee may wish to transfer their business. They could have viewed the franchise from the beginning as an asset to build and sell. They could be experiencing a life or career change. They could need to cash out. The relationship between the franchisor and the franchisee could have fractured and a new franchisee needs to be put in. As a result, both franchisors and franchisees need to fully understand their legal rights, options and duties concerning transfers.

First, the parties should look to the franchise agreement. A well drafted franchise agreement should set forth specific steps and conditions for the franchisee to transfer. These can include things like:

  • Notice. Who gives notice and when? What must the notice include?
  • Buyer’s information. The franchisor should ensure that the transferee meets all of its financial and business qualifications.
  • Transfer fee payment. Sometimes the franchisee has to pay a deposit at the time it sends the notice.
  • Unless they are already a franchisee in the system, the transferee will probably need to be trained. When would this happen?
  • The agreement might require that the business be upgraded. Whose responsibility is this? When does it need to be completed? What is needed to upgrade?

In addition to what is listed in the franchise agreement, there are other important considerations that might not be as obvious:

  • Many states have laws governing transfers. Sometimes the franchisor cannot unreasonably block a transfer. Sometimes the franchisor might only be able to block a transfer under very specific conditions. An analysis of what state law says about transfers should be made.
  • Everyone should ask what is best for the business. Sometimes a new lease will need to be signed, financing will need to be obtained, etc. The parties should inform one another of what business and legal steps need to be taken.
  • The franchisor should ask what is best for the system. Sometimes turnover is needed to remove a franchisee who is viewed as a poison pill from a franchise system. Franchisors will typically face less scrutiny and litigation if that business is sold than if it is terminated. Plus, the franchisee can usually cash out instead of being left fighting over whether the termination was proper. This is often the best “win-win” situation 2 parties who aren’t getting along can reach.

 

Right of First Refusal

Many franchise agreements give the franchisor the right of first refusal (ROFR) on the franchised business when the franchisee decides to sell. Whether a franchisor should execute the ROFR is an important decision.

 

Involvement in the Sale

Franchisors should take great care with the role you play in the transaction. Most franchisors act as a bystander to the sale, only requiring that they approve the new franchisee and collecting any fees they are owed. Unless you have a good reason to get involved in the transaction, franchisors should only be involved in approving the deal and having the parties sign any paperwork required. The most obvious reason for doing so is that it minimizes your chances of being sued (or, more accurately, of a court allowing a lawsuit against you to stand) if one of the parties later becomes unhappy with the terms of the sale. If you didn’t help negotiate or draft the terms of the sale, it’d be hard for someone to argue you acted in bad faith, committed fraud, etc. We’ll get into more below, but state laws may also come into play if you are too involved in the sale.

 

Disclosure of New Franchisee

As a condition of approving the franchise sale, most franchisors choose to have the new franchisee sign a new franchise agreement. But, as a new franchisee, do they need to be disclosed with your FDD? Federal law says they don’t. Well, sort of – under the federal rule, all prospective franchisees must be disclosed. But their compliance guide states that someone buying an existing franchise directly from the franchisee who owns it is not considered a prospective franchisee, so long as they don’t have “any significant contact with the franchisor.” Great! But what is “significant contact”? While exercising the right to approve the sale won’t be considered significant contact, they don’t provide us much else. This is rather unfortunate, because a big part of approving the sale is, typically, evaluating whether the buyer would make a good franchisee.

Additionally, some states have their own disclosure requirements, and out of those states, only a few provide a specific disclosure exemption regarding a franchisee selling its existing business. And, similar to the federal rules, those exemptions will only apply as long as the franchisor is not involved in the sale.

Given the lack of exemptions in registration state laws and clarity provided by the federal rules, the safest practice is to always furnish the prospective buyer with your disclosure documents. If you find yourself in a situation where there is no time for proper disclosures, then you should speak to a franchise attorney before moving forward.

 

Will I Need State Registration?

Sorry, I know that question likely made your stomach do a backflip. The short answer is maybe – if you have a franchisee selling its business in a registration state, you may need active registration in order for that sale to happen. Thankfully, many states have specific exemptions from registration for situations where a franchisee sells its business to a third-party buyer. However, like the federal rules, those exemptions are again contingent on the franchisor not being involved in the sale (many states use headache-inducing phrase, “whether the sale is effected by or through the franchisor”).

While each state provides its own guidance and examples of what is too much franchisor involvement, most end up at approximately the same place. The examples they provide typically outline actions that franchisors are allowed to take without being required to register, as opposed to ones that will require registrations. Some examples of permitted behavior are listed below, but as you can see, they are fraught with exceptions:

  • Exercising the right to approve the sale/new franchisee – Washington requires that it is done in a reasonable manner.
  • Charging a transfer fee –some states require that the transfer fee must be reasonable, and in Wisconsin it can only be the franchisor’s actual expenses.
  • Requiring the new franchisee to sign a new franchise agreement – again, some states require that the new franchise agreement cannot be materially different from the old agreement.

Remember that the examples above are only related to registration. You are certainly allowed to be more involved in the sale if you want – you just might have to be registered in order to do so. Of course, if you are already registered, it won’t be an issue. Of course, there are several other financial and business decisions to be made when you have a franchisee selling its business, but from a legal perspective, these are the big components that could potentially land you in hot water if you don’t take them into account.


Super Bowl Trademark & Copyright Rules 2022

Sounds simple enough, right? Just wipe down the bar, turn on the TV, and watch your beloved craft patrons flow while your taps flow out. Like most things in life, it isn’t that simple, and legal issues may come into play (pun intended). Here are the most updated Super Bowl trademark & copyright rules in 2022.

What are the Super Bowl Copyright Rules

The NFL owns the copyright to the Super Bowl. Think about it – how many times have you heard or read “Any other use of this telecast or any pictures, descriptions, or accounts of the game without the NFL’s consent is prohibited” when watching a football game? So many times that it’s permanently engraved into your brain? Yeah, us too.

Here’s a quick refresher on copyright law. According to the Copyright Act, a copyright owner has the following five rights:

  1. Reproduce the copyrighted work
  2. Prepare derivative (spin-off) works based on the work
  3. Distribute copies of the work to the public
  4. Perform the copyrighted work publicly
  5. Display the copyrighted work publicly

Like playing music in your taproom (check out our blog on that here), we are concerned with number 4, the right to perform the work (the Super Bowl in this case) publicly.

Do You Need Legal Rights to Broadcast Super Bowl

You must have the legal right to broadcast the game to the public.  One way to get that right is to use a commercial television service such as a DirecTV or Xfinity business account.  The key here is that it’s a “business” account.  You can’t use your personal DirecTV login to show the game at the brewery.  Business accounts typically cost more than consumer accounts because they include the licenses needed to show the programming publicly. The same is true for many streaming services – you need a specific type of account authorizing you to stream its content to the public.

Can You Broadcast Super Bowl Without a Business Account

What if you don’t have one of these business accounts? Thankfully, there is another way to show the game legally.  And it’s old school. Remember when you had rabbit ears on the TV to watch any of the four broadcast channels? If you don’t, we need to check your ID. Well, copyright law allows you to broadcast TV from an antenna in your brewery (or other business) so long as you meet these requirements:

  • Your brewery is no larger than 3,750 square feet
  • You don’t require customers to pay to access the space where you show the game (i.e., a cover charge)
  • You don’t show it on more than four TVs total (and each TV airing the game is in a different room)
  • The TV screens airing the game are 55” or smaller
  • You aren’t playing the audio on more than six total loudspeakers (and there aren’t more than four loudspeakers broadcasting the game in a single room)

Super Bowl Copyright Exceptions for Breweries

We know that sounds pretty bizarre, but those are the rules. If you’re a larger establishment, you may be concerned about the square footage requirement. Don’t worry, though. If we dive deeper, there is a dream within a dream – I mean an exception within an exception, sorry. Even if your brewery is larger than 3,750 square feet, you can still avoid copyright infringement if you confine the viewing area to a space less than that particular square footage. For example, if you have multiple tap rooms in your brewery, only broadcast the game in a single room that doesn’t exceed the maximum square footage requirement.

Super Bowl Trademark Rules 

Just like you’ve trademarked the name of your favorite brew (if you haven’t, drop us a line), the NFL has trademarked the name of its favorite game. And like most corporate giants, the NFL can be pretty sensitive about the unauthorized use of its trademarks. So, establishments advertising themselves as a place to watch the “Super Bowl” should proceed with caution.

Under trademark law, a brewery could use another company’s registered trademark if: 

1) The use does not suggest a relationship between the advertiser (brewery) and the trademark owner; and 

2) The trademarked goods or services cannot be readily identified without using the trademark.  This is called “nominative fair use.”  

The first part isn’t challenging to achieve. A phrase like “come watch the Super Bowl” probably doesn’t suggest a relationship. At the same time, “get your Super Bowl beers at Brewery X” is more likely to imply an association or sponsorship.

In this case, the second part of nominative fair use is harder to navigate because you can probably find a way to advertise that you are showing the Super Bowl without actually using the words “Super Bowl.”  Most Americans will know what you mean when you say, “come watch the Big Game with us!”

How to Avoid Legal Issues With Trademarks

To be safe, just try to avoid using the NFL’s trademark.  Do something clever like “come to watch expensive commercials and an American Football game this Saturday” or another similar phrasing.  You can call it a “Football Watch Party,” “The Sports Game Watch Party,” or “Game of Touchdowns”; we don’t care. Just don’t use the term “Super Bowl.”

So get your favorite beer, watch commercials and cheer for your team. GO SPORTS!

Hire Drumm Law as Your Trademark & Copyright Lawyers

Drumm Law is a virtual law firm. Unlike our competitors, we do not have an expensive downtown office and the overhead that comes along with it. We call, email, text, Skype, chat, “goto,” webinar, Facebook, Linkedin, meet, tweet, and greet our clients. We have attorneys throughout the country. While we have conference rooms available when needed, we prefer to meet our clients over lunch or drinks. Contact us to book a consultation!


Mistakes to Avoid as a Franchisor

There is enough advice out there for franchisors to fill many books. But we have a few hints from another perspective. Our corporate department at Drumm Law often gets called in to help franchisor clients sell their business, and this is when many of the franchisors’ weaknesses really come to light. We’ve compiled a list below of best practices for franchisors from the corporate attorneys perspective.

1) Don’t forget to educate your sales team (both internal and external).

*During the negotiation for the sale of franchisors, old oopsies from the sales team can cause the buyer to ask for a reduction in purchase price (sales process oopsies = higher risk for buyer) or even derail the proposed deal altogether.

*Franchising is a very litigious area, and franchisors get sued pretty regularly. If you (franchisor) make a mistake in the sales process (improper disclosure, insufficient waiting time, etc), your business has far more risk for the buyer, and that’s going to be costly for you.

*Solution: make sure you are educating everyone on your sales team about the regulations. Have processes in place, have your attorneys provide training, etc.

2) Be discriminating.

*All franchisors go through periods of time when they just really need to bring franchisees in the system. It’s tempting to accept any prospect who is interested. But keep in mind, you’re not considering dating this prospect. You’re considering marriage (ie, joining as franchisor and franchise).

*Solution: really make sure that your prospect is the right one: do they meet your financial, experience needs? Will you be able to work with this person? And be willing to reject prospects who are not the right fit. This will save you so much pain and suffering (and cold hard cash) in the long run.

*When I am working through the due diligence process of selling a franchisor, this comes up a lot. There are several (or even just one) problem franchisees: my client will have lost money on the franchisees during the franchise agreement. And then to make things worse, when my client tries to sell the system, the buyer wants reassurances about the problem franchisees. I’ve seen deals where the buyer only agrees to buy the franchisor if my seller-client takes all future monetary risk for the problem franchisees (the problem that never ends).

3) Details really do matter. Don’t forget to double check your documents just one more time; Keep good files.

*During normal operations, life gets busy, and it’s hard to attend to all the details. You may not read closely through your franchise agreement or addendum, or you may not keep files of all correspondence with your franchisee. It doesn’t seem like it will matter at the time, but these lapses can and likely will come back to haunt you at some time.

*If you do end up with a problem franchisee, you need to have access to these files. And when you sell your business, the buyer will want to see every document and correspondence.

*Solution: Hire one good person who is in charge of all of these details. This person will double check all agreements to be signed (do you have the correct name of the franchisee, all owners listed? Territory correctly described and not overlapping another territory?). This person will be in charge of maintaining a good consistent filing system. If you aren’t able to handle the filing system on your own, buy a software system to help you out.

4) Spend time getting to know your franchisees.

*I hesitate including this one because it’s so obvious. But it is a mistake I see over and over again. By and large, my franchisor clients are in their businesses out of passion, and they love sharing the business with their franchisees. But the mistake I see is when my franchisor-clients don’t spend time getting to know their franchisees and establishing that connection.

*Solution: the more you can establish a connection with your franchisees, the less likely you are to have disputes (which are time consuming, costly, and make your business less attractive to buyers). Hire team members that work well with people, and make sure the franchisees see the support you are providing and not just the policing.

5) Have compassion, but make sure to be consistent.

*We are called in often to help a franchisor create a strategy when their franchisee has gone off the straight and narrow. Sometimes the franchisee is going through a divorce, or has a death in the family or a health problem. Our franchisors want to provide support, but that can be tricky. Because if you offer a benefit to one franchisee, you have to assume that all other franchisees will find out about it. (For example, if you offer a benefit to a California prospect, keep in mind that all other prospects will receive a summary of the benefit you provided to the first prospect.)

*Solution: anytime you offer a benefit to one person (whether it is to a prospect or an existing franchisee), think through this option on a system-wide scale. Would you be willing to offer it to other franchisees? Other prospects? For example, if a franchisee is going through a health problem, you may want to offer management support or one on one support instead of a royalty waiver. And make sure that you would treat all franchisees in a similar position in the same consistent manner.

If you have any questions, always feel free to contact us here.


Buying an Existing Franchise: Everything You Need to Know

Congratulations! You have leaped into the world of franchising and buying an existing franchise. Here is how a franchise attorney can help you to prepare all the documents and solve legal issues.

Do You Need a Franchise Lawyer to Buy a Franchise?

A franchise lawyer will help you every step of the way in deciding whether or not to buy a franchise. The first order of business is to help you read the fine print of the FDD (franchise disclosure document), and your franchise lawyer will help you understand all the language it contains.

What is Franchise Disclosure Document (FDD)

FDD is a 23-item document that outlines the franchise's tiny little details. Of particular importance is Item 19, which may include financial performance representations that can help you determine whether or not the franchise is likely to make you a lot of money. The FDD also contains the Franchise Agreement. These legal documents are extremely important to the relationship between the franchisee and franchisor, so understanding them entirely is imperative.

Conclusion

A franchise attorney like those at Drumm Law will help you make an educated decision about whether or not you should be buying an existing franchise. If you decide to buy the franchise, your lawyer will help you set everything up and also help intercede for you if something goes wrong through your franchise ownership.

Hire Drumm Law to Help You With Buying an Existing Franchise

Drumm Law is a virtual law firm. Unlike our competitors, we do not have an expensive downtown office and the overhead that comes along with it. . We call, email, text, Skype, chat, “goto,” webinar, Facebook, Linkedin, meet, tweet, and greet our clients. We have attorneys throughout the country. While we have conference rooms available when needed, we prefer to meet our clients over lunch or drinks. Contact us to book a consultation!


Commercial Lease Negotiations: Can a Franchise Lawyer Help?

If you want to open a retail franchise, you will likely need to lease some commercial space. And as with anything, you will want to get the best terms for your deal that you can. Hiring a seasoned attorney will give you a stalwart defender who will be by your side and support you in all retail commercial lease negotiations.

Though a franchisor will give you all the tools of the trade, and you will have the business model and training schedule you need to follow, they typically do not help you with a lease agreement. A lease agreement document can be between 40-50 pages, and with all of those critical details that it holds, you will definitely want a competent franchise attorney to work through the process with you! The landlord is trying to get the best deal and have realtors and attorneys on their side, and you should also have someone with your best interest in mind.

There are many ways a franchise attorney can help you negotiate your retail commercial lease, and just having a trained professional by your side will help you to feel more confident. The following are some perks of hiring a franchise attorney.

  1. They understand the importance of the first round. After years of experience, a quality franchise lawyer understands how important the first round of negotiations is. Anything you want changed needs to be dealt with in this round if you want to make it happen.
  2. They know what landlords are willing to give up so they don’t waste anyone’s time. Because they have handled so many cases, franchise lawyers understand where to push a landlord, and where he is likely to stand firm. This will save everyone time and aggravation.
  3. They can help you lower the deposit. Your franchise attorney will try to negotiate a better deposit price for you. Large deposits are not required, but many landlords will still try to get them in order to recoup some of the money they pay out for taxes, etc. There is nothing set in stone, so let your lawyer help you lower the deposit number.
  4. They will stand by you when you refute the first offer, and the second, and the third. Realtors and landlords are used to many offers and counter-offers, so don’t give up too soon. Whatever the landlord offers first is a lowball offer and you should at least play the game to see how far he will go. Your franchise lawyer will advise you on how to raise your bids in increments, and how to always ask for more than what you want.
  5. They will let you know the risks of the Lease. Is there a personal guaranty? What if you need to terminate the lease early?

A franchise attorney can help immensely with your retail commercial lease negotiations. Contact us today to see how we can help.


Why Have an Item 19 in Your Franchise Disclosure Document

No one wants to air their dirty laundry in public, but having an accurate Financial Performance Representation in your Franchise Disclosure Documents will help your franchise rather than hurt it. You don’t need to fudge the numbers and make everything look perfect; that is simply not realistic. Certainly there are gray areas in an Item 19, and that is where Drumm Law can help, as we specialize in telling your story. Having a clearly written FPR in your FDD will help match you up with the right franchisees, and give you a stronger chance to sell your franchise to the right people.

Why have an Item 19?

  1. Item 19 shows the dollars and cents of the franchise.
    You need to include the good, the bad, and the ugly. For instance, no one expects a business to get 5 star ratings in every franchise in every location and during every transaction. That is just not realistic. Showing some quality franchise numbers and some that are not so stellar will show potential buyers that the location of the store and the business acumen of the particular owner all matter to the bottom line.
  2. The Item 19 will tell your story.
    There are many nuances to running a franchise, and at Drumm Law we can help you tell your story. There is more to Item 19 than just a profit line. The FPR can help a potential buyer to understand the full scope of the business. Do you really want to hustle for your money day in and day out? Or do you want to work a few hours a week for a side gig? The FPR will help you match the business style of the franchise with the business style of your potential buyers.
  3. This document helps you sell your franchise to the right people.
    When prospective franchisees read your FPR, they will be able to see the amount of blood, sweat, and tears it would take to run this particular franchise. For example, if you have a busy fast food restaurant with 30 employees that would be a very different experience than having a sandwich shop with 3 workers. You definitely want to get the right franchisor for the job, and if your FPR tells the whole story, you are better able to match a buyer with your store.

Sometimes people are tempted to finagle the numbers on the Item 19 to place their franchise in a more favorable light. But in the long run, allowing a potential franchisor to see your story at the outset will help everyone to be on the same page and ultimately lead to the right franchisees buying into your business.


4 Franchising Tips for a Franchisor

1 - Do your homework.

Find a niche that needs to be filled and a business model in which you can be successful. You will do better if you are passionate about the product, so make sure that your business is compatible with your interests. Once you decide on the type of business you have the wherewithal to run (whether it is food, eyelashes, home improvement, tutoring, or whatever else suits you), find the perfect location and then create your business plan. Make sure you budget for equipment, monthly expenses, and insurance, because there always tend to be a lot of hidden expenses that crop up.

2 - Understand the commitment.

The people that choose to franchise with you are putting a lot on the line, and this is basically like a lease. To keep up your end of the bargain, make sure that your business is running smoothly and that you are turning a profit. Communicate well with employers, vendors, and franchisees. Communication will be a huge part of your success. With your continued success, you can enter into more franchise agreements as well.

3 - Build your brand.

If your goal is to franchise, then your customers will need to recognize your products and services, not only in your local area, but in the broader community. Take time to create a marketing plan that will help you get recognized easily. You need a catchy slogan, some inspiring copy, and a logo that will stand out from the crowd. Then everything you do, every place you advertise, and every move you make will utilize this branding.

4 - Utilize the expertise of an experienced franchise attorney.

The one certainty in franchising is that there are a lot of moving parts when it comes to getting your franchise off the ground. Hiring an experienced franchise lawyer will help you do things like getting your federal trademark and understanding the franchise disclosure document. It is the kind of document that lay people can get lost in, and you need an experienced lawyer to help you navigate through it. The last thing you want is to get surprised by some hidden law or loophole that you didn’t see coming. Set yourself up for success by having a dynamic legal team on board.


Importance of Franchising Industry Growth

The franchise industry has been growing exponentially, as there are many new opportunities available as a result of Covid-19. Entrepreneurs used the upheaval of the pandemic to create new business models to cater to the needs of people stuck at home in the shutdown. And when the model works in one town, this is a good time to branch out into franchising and take the business model to another part of the country as well.

Innovations like mobile and delivery-only restaurant concepts are taking the country by storm. Because many people are not going to traditional sit-down restaurants as much, this is an excellent business opportunity.  Additionally, because many people are doing home improvements while stuck at home, mobile home improvement franchises have also been emerging.

The rise in virtual work has left many office fronts sitting empty. This means that in most of the country, rental space is getting cheaper. Franchisors can get a space for their new business at a cheap rate, which helps the bottom line as they are trying to build the new company.

In addition to new franchises, there are some notable current franchises that have been doing well in the pandemic. Popeye’s and Domino’s pizza are flourishing, considering how many people want a take-out meal in these difficult times. School related franchises are also doing well, as the school situation across the country is difficult at best. Mathnasium, a private tutoring company, is getting a lot of business from people concerned their children are falling behind. And with all of the new safety regulations in place, franchises like Fastsigns are booming as retail establishments, restaurants, and schools clamor to follow regulations and create the necessary signage to keep people safe.

The growing franchise industry is important because it is an excellent time to get to work as a franchisor, to develop a concept and to market it to others. If you have ever had the interest in taking a chance on a business idea, now is the time. The pandemic has shaken up the snow globe of franchising, and with so many new businesses available, this is a great time to jump.

But as the old saying goes, if it's worth doing, it's worth doing right. If you want to make your franchise dreams a reality and jump on the bandwagon of the burgeoning franchising business, start with an experienced franchise lawyer who can help you lay the foundation for a successful franchise down the road. They can help you turn your business model into a workable business to start with, and that in turn can eventually be franchised across the country.


How to Choose the Best Franchise Attorney

A franchise lawyer is a lawyer that has specialized in the area of franchising, both for franchisors and franchisees, and has knowledge in all legal issues involving both state and federal franchising laws.

Selecting the right franchise attorney for your business can be a daunting task, as most law firms claim to have at least some experience in the area of franchise law. Before selecting your franchise lawyer, it’s important to understand a few things:

What does a franchise attorney do?

By contracting an experienced franchise attorney, you aren’t just helping protect yourself against any inconsistencies in your Franchise Disclosure Document or liabilities in the process — you’re also helping mitigate any potential issues along the way.

Why do I need a franchise lawyer?

A competent franchise attorney can offer you incredibly useful suggestions how to structure your new or existing franchise business. Selecting the right franchise lawyer also means having the right team by your side if things happen to go south, for a variety of reasons.

About Drumm Law

At Drumm Law, our mission is simple — we are a virtual firm with an award-winning team of franchise attorneys that are ready and willing to assist you with any of your legal franchise needs.

Learn more about how Drumm Law can help with your franchising processes.