Charles Nicholas Internicola's Answers

What is the difference between franchising and licensing in regards to expanding a business

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...

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Can Corporate take my franchise?

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...

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

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...

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

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)...

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Purchasing assets of existing franchise business - what is essential to review?

In a couple of sentences you have raised many questions. The answer to your question depends on he exact nature of your transaction, i.e., when you say that you are "purchasing the assets of an existing business", are you (1) taking over the franchise and intend to continue the franchises operations, or (2) has the franchise terminated its operations and you are just buying its business assets (such as equipment) for use in another business? Under the first situation (if you intend to...

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What is the best way to find a franchise lawyer?

Contacting your local bar association will definitely be useful in finding a franchise lawyer. Also, if you are conducting an internet search definitely focus on the attorneys experience in franchise law - membership in focused committees such as the "ABA Forum on Franchising" is helpful. Also, it is important to keep in mind that there are many things that you should be considering and evaluating before you even reach the stage of contacting a franchise lawyer and committing to a franchise...

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