Charles Nicholas Internicola’s Answers

Charles Nicholas Internicola

New York Franchise Lawyer.

Contributor Level 7
  1. What is the difference between franchising and licensing in regards to expanding a business

    Answered over 5 years ago.

    1. Kevin Brendan Murphy
    2. Charles Nicholas Internicola
    3. John J. Tollefsen
    3 lawyer answers

    This is a common question and an important issue that all entrepreneurs should be aware of when evaluating options respecting the expansion of their business. This issue was recently discussed on my blog at www.newyorkfranchiselaw.com. In the blog post we were discussing why a "license" was not a suitable alternative or model to avoid franchise regulation, i.e., to avoid franchise regulation, but nevertheless achieve brand growth, the entrepreneur (as a “licensor”) licenses his or her trade...

    8 people marked this answer as helpful

  2. How can I expand my business through partnerships?

    Answered 3 days ago.

    1. Richard J. Chertock
    2. Charles Nicholas Internicola
    3. Alexander Gregory Knapp
    3 lawyer answers

    Glad to see your analysis and the thought that you have put into this process. As you are aware, you are walking a fine line between "partnerships" and triggering franchise regulation in New York. I understand why you would want to avoid franchise regulation but consider that the franchise laws are not triggered by form but rather substance, i.e., whether or not there is an upfront franchise fee, control and a licensed trademark or brand. New York law is further expansive and may not even...

    2 lawyers agreed with this answer

  3. Is a franchise agreement void if they were not registered in my state at the time of signing?

    Answered about 1 year ago.

    1. Kevin Brendan Murphy
    2. Janet Spiro Martin
    3. Charles Nicholas Internicola
    4. Matthew R. Auric
    5. Aalok Sikand
    6. ···
    7 lawyer answers

    The short answer is - no, the franchise agreement is not necessarily void. However, if the FDD disclosed to you was not currently registered with the California Department of Corporations (assuming that you live in CA and your franchise is a CA franchise) then you may have the right to rescind your franchise agreement. However this does not happen automatically and there are time limits - so you should consult with a franchise lawyer to discuss your options. Since the franchisor appears...

    3 lawyers agreed with this answer

  4. Hi, I am having issues with my partner. I own 25% of a business and my partner is liquidating the bussiness assets to his new bu

    Answered 7 months ago.

    1. Charles Nicholas Internicola
    2. Jeffrey Bruce Gold
    3. Ronald S. Cook
    3 lawyer answers

    So you don't offer much information and it sounds like you may have another job. Partnership asset misappropriations happen often and your response should be gauged by (a) the value of the assets, (b) whether or not the business is continuing, (c) If you intend to stay in this business. But basically, your partner will continuing to do what he or she is already doing unless you start a lawsuit seeking injunctive relief. When it comes to starting a lawsuit you need to evaluate the costs and...

  5. Can Corporate take my franchise?

    Answered over 5 years ago.

    1. Charles Nicholas Internicola
    2. Kevin Brendan Murphy
    3. Lesley Abigail Hoenig
    3 lawyer answers

    This is a technical bankruptcy law question. As a business and franchise lawyer I do not know the bankruptcy aspect. However, from a franchising perspective, be careful and review the terms of your franchise agreement. Your franchise agreement may actually classify the filing of a bankruptcy petition as an "event of default" upon which your franchise agreement may be terminated. Whether or not the bankruptcy court may prohibit this is another question. To the extent that you are...

  6. I'm interested in purchasing a franchise, but I need help w/ negotiating the price, valuation of the property..Who do i contact?

    Answered about 1 year ago.

    1. Nancy L. Lanard
    2. Kevin Brendan Murphy
    3. Charles Nicholas Internicola
    4. Neal Jonathan Blaher
    5. Janet Spiro Martin
    5 lawyer answers

    That is a good number of questions, much of which goes beyond "legal questions" and get to the critical issue of due diligence. I am not sure if you are purchasing an "existing" franchise business or looking to start a new franchised business. Nevertheless, here are some points that you should be considering and valuing: (1) Cheap May Be The Wrong Approach - Look you need top be looking for a "profitable" investment. Something that is fundamentally sound and a business they - with time,...

    1 lawyer agreed with this answer

    1 person marked this answer as helpful

  7. If you own a franchise is it legal to send employees from that franchise to work for your other company?

    Answered over 2 years ago.

    1. Kevin Brendan Murphy
    2. Shawn Regis Jackson
    3. Charles Nicholas Internicola
    4. Barbara I Berschler
    4 lawyer answers

    Interesting question - especially since you are focused on short-term assistance and help. The answer is a function of the rights set forth in your franchise agreement. First step is to evaluate whether or not you are permitted to even be operating a separate business. If your franchise agreement permits you to operate the separate business (something that you must be certain of) then a practical solution may be to contact the franchisor and obtain their approval. By doing this you will be...

    1 lawyer agreed with this answer

    1 person marked this answer as helpful

  8. I would like to get my deposit back from the franchise I signed with.

    Answered over 5 years ago.

    1. Charles Nicholas Internicola
    2. Kevin Brendan Murphy
    2 lawyer answers

    This is a tough situation and, unfortunately, one that is experienced by far too many individuals. Please also keep in mind that the precise answer to your question will depend on a number of factors including the laws of the State where you are located and the State law that may be selected as the governing law in your franchise agreement. However, from a general stand point, the answer to your question depends on two very basic factors: (1) Is the franchisor financially solvent and (2)...

    3 people marked this answer as helpful

  9. I have a franchise agreement with a restaurant and have multiple locations. I believe they violated my rights on several levels

    Answered 11 months ago.

    1. Mary Michelle Clapp
    2. Brooke Ashton
    3. Janet Spiro Martin
    4. Charles Nicholas Internicola
    5. Howard Ramsey Morrill
    6. ···
    6 lawyer answers

    From your question it sounds like you are an experienced operator with a significant operation. The profitability and the success of a franchise relies on many facets and I am not sure that just chalking this period of unprofitability up to the need to increase prices (which may or may not be accurate) as being a full explanation for your problems. Also sounds extreme that the CEO for the franchisor stated that he "failed you" but if this is the case then this admission may be positive from...

    1 lawyer agreed with this answer

  10. Can we sue our franchisor for not offering the assistance that was promised?

    Answered about 1 year ago.

    1. Kevin Brendan Murphy
    2. Bryan Warren Dillon
    3. Mary Michelle Clapp
    4. Janet Spiro Martin
    5. Charles Nicholas Internicola
    5 lawyer answers

    Sounds like you are in a tough situation and maybe the franchisor contributed to it and maybe the franchisor did not - but it seems to me that you have a business problem right now and that the franchisor is trying to help. You also need to consider that although a franchisor is required to support you that - as a franchisee - you also share a good amount of responsibility for your own marketing, the effort that you put into the business and how you develop a base of raving customers. In...

    1 lawyer agreed with this answer

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