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Kevin Brendan Murphy
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Kevin Murphy’s Answers

569 total


  • How do i expand or license my business if we are not financially ready to franchise and the demand is overwhelming?

    We are a small business with a huge international reputation. However we are no where near ready to franchise financially. I would like to explore licensing perhaps but need to know if that's possible & if so what legal aspects do I need to have c...

    Kevin’s Answer

    In addition to the sound advice offered by my colleagues, I add the following.

    The elements necessary to satisfy being a "franchise" under the FTC's Franchise Rule are very simple and many license arrangements are really the sale of disguised franchises that are ticking time bombs waiting to explode. I settled one such case in 2013 where the licensor sold licenses to operate a retail yogurt shop under its brand. My client paid the licensor $40k for two licenses. Shortly after I filed the Complaint for selling an illegal franchise, the licensor settled for almost $600k. Collect $40k, but end up paying $600k, and attorneys fees - you do the math on that one. And there are about a dozen other licensees sitting out there - ticking time bombs.

    You need competent advice and a plan. Having no plan is a plan - unfortunately it's nothing but a plan to fail.

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

    See question 
  • A franchise was taken away from my husband cause he got ill after grand opening.paid x $ for equipment that belong to landlord.

    Could not sell equipment cause landlord said it belonged to the building. We were charged 1000.plus for equipment.

    Kevin’s Answer

    Unfortunately you didn't ask a question.

    In any event, you need to take all the documents to an experienced franchise attorney. These, along with the facts and circumstances surrounding what happened, will put the attorney in a position to advise what legal recourse you might have.

    Best of luck,

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

    See question 
  • I recently had lunch at a local franchise and there was steal metal they use to clean pots was in my food . Im having bowl issue

    It has been a couple of weeks,and Im not getting better however the first 24hrs I did consult medical treatment. At this points I'm my concern is my long term health . What Should I Do ???

    Kevin’s Answer

    You may want to consider contacting the franchisor - parent company - and letting them know what happened. Usually they will investigate these matters. If you are having health issues, consult with a personal injury attorney in your area.

    Best of luck

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

    See question 
  • I've just bought a travel agency franchise which operates out of my home. What permits and/or license do I need to obtain?

    Home based business.

    Kevin’s Answer

    As my colleague notes, go to your local City Hall and they will be able to assist you with permit and licensing requirements.

    Best of luck !

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

    See question 
  • Can I break my Quiznos Fast food franchise agreement if loosing money?

    Hi I own a Quiznos restaurant from last 3 years but from last 2 years i am loosing money in this business.So finally, I am planning to close this store but as per quiznos corporate i have to pay a big amount to leave the agreement. As this company...

    Kevin’s Answer

    If you franchisor is in bankruptcy, this will not prevent legal action being taken against you. You need to consult with an attorney in your area. You may want to consider filing bankruptcy yourself if you don't have significant personal assets that are at risk.

    Good luck,

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

    See question 
  • Are franchise agreements negotiable? There are terms that we weren't aware of beforehand and we have already paid $3400.

    We are wanting to purchase an in-home care franchise in Des Moines, Iowa. We put down our deposit of $3400 and now they sent us the franchise agreement forms to sign. There are many terms that we were unaware of beforehand and are wondering if t...

    Kevin’s Answer

    Did you have their entire FDD for the required 14 calendar days before giving them the $3,400, and was payment of a $3,400 deposit disclosed in the FDD?

    If you are dealing with McDonalds, nothing is negotiable, but for lesser-known chains negotiation depends on how eager they are for the deal and the negotiating rationale.

    You really need to have experienced franchise counsel review their FDD (including franchise agreement) in order to properly advise you.

    Good luck !

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

    See question 
  • Can a franchisor ask you about your marital status and marriage history?

    I am considering purchasing a franchise. During the meetings with the franchisor, they asked me about my current marital status and my marriage history. I am located in California and the franchise unit (if purchased), would be in California. ...

    Kevin’s Answer

    Agree with my colleagues and only add the following. The fact they are being this inquisitive at the application stage is all the more reason for having a competent franchise attorney review everything. I currently represent a person here in San Francisco who didn't. The result is an expensive, uphill legal battle after things didn't work out as expected.

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

    See question 
  • Defense counsel keeps harping on whether or not I understand Franchisor/Franchisee agreements.. he sent me the agreement?

    no where in this 40 page document does it state the words "Franchise" "Franchisor" and "Franchisee" no where at all... im a law school student so I know a thing or two. What would constitute the relationship between both defendants to be a Franch...

    Kevin’s Answer

    Agree with the other attorneys here. Perhaps defense counsel doesn't understand CA's Franchise Investment Law and how easy it is for a "license" to be classified as a franchise. Or perhaps defense counsel knows and is trying to deflect attention. Seek out seasoned franchise counsel asap.

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

    See question 
  • In 2013 I was ripped off for about $8000.00 by a man I was in business for.

    I was a franchise owner in 2013. The other of the big franchise refused to pay me moneies he owned me in Aug and Sept of that year. Can I still sue him for my funds. I am a single mother and desperately need my money. I also need a good lawyer. Pl...

    Kevin’s Answer

    Unfortunately it is not possible for the attorneys here on Avvo to give you advice without examining the contracts you have and the underlying facts and circumstances. You should see an attorney asap, and especially a franchise attorney would be a smart choice.

    Good luck,

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

    See question 
  • Can a franchise owner cut my hourly pay for work I've already done?

    I recently quit a job at a franchise without notice, and when I went to get my final paycheck the owner had cut my hourly wage down to minimum wage. I asked him what happened and he said he cut it because I didn't give notice. My uniform and every...

    Kevin’s Answer

    Contact your local Employment Development Department and report what happened. They will advise you about your rights and possibly investigate the matter.

    Best of luck,

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

    See question