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Texas Restaurant Law

Category Archives: Franchises

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Top Ten Tax Mistakes for Restaurant Owners

Posted in Corporate Entity, Employees & Waitstaff, Franchises, Liability, Litigation, Real Estate, Recent Law Trends

We all know how important restaurant taxes are to restaurant owners. Last week, our own tax counsel, David Gair, outlined his Top Ten Tax Mistakes for Restaurant Owner on TexasTaxTalk.com, so TexasRestaurantLaw.com decided to share it as well. Here is the list in its entirety: Employee Classification – Misclassifying workers as independent contractors and not… Continue Reading

How To Deal With Restaurant Partner Disputes

Posted in Commentary, Contracts, Corporate Entity, Franchises, Franchising, Liability, Litigation, Negotiation

There are many motivations for restaurant creation and investment. However, these different desires can lead to conflict, so how are restaurant operators, owners, and investors supposed to resolve these conflicts? This post answers that question, and it gives a game plan to operators, owners, and investors to deal with these inevitable conflicts. Step One: Avoid… Continue Reading

The Changing Nature Of Restaurant Real Estate

Posted in Acquisitions, Commentary, Franchises, Franchising, News, Real Estate

For those familiar with the International Convention of Shopping Centers (a/k/a “ICSC”), you probably received your copy of Shopping Centers Today (“SCT”), which is the monthly magazine that they publish on national real estate. For those who don’t know, ICSC connects nearly all retail operators, landlords, and brokers who are involved in real estate, and… Continue Reading

When To Terminate A Restaurant Transaction

Posted in Acquisitions, Commentary, Competition, Contracts, Franchises, Franchising, Liability, Litigation, Negotiation

Restaurant transactions are similar to the old Kenny Rogers song, The Gambler – “You’ve got to know when to walk away, and know when to run!” Perspective is so important in general, and in restaurant transactions, you must know when to move forward on deals and when to kill them. But how do you determine… Continue Reading

Biggest Legal Causes Of Restaurant Failures

Posted in Acquisitions, Commentary, Franchises, Franchising, Liability, Litigation, Negotiation, Real Estate, Recent Law Trends

Just this week, two of my favorite restaurants in Dallas closed operations. This led me to consider the biggest issues I have seen that factored into a troubled restaurant. A few of these may not be a surprise, but you may be shocked at others. Consider this list of top legal reasons why restaurants fail:… Continue Reading

The Absolutely Essential Issues In A Restaurant Lease

Posted in Acquisitions, Contracts, Corporate Entity, Franchises, Franchising, Liability, Litigation, Negotiation, Real Estate

Leasing is a big issue for restaurants. Almost all restaurants at least start out leasing their space. Often, restaurants are required to lease their space to capture the prime locations of a given area. For these reasons and many more, it is vital for restaurant owners to pay close attention to leasing terms. The following… Continue Reading

How To Spot Good Restaurant Investments

Posted in Acquisitions, Contracts, Franchises, Negotiation, News, Recent Law Trends

By all accounts, 2013 should be a great year for the Texas restaurant industry. For just one example, click on this link, which is an article by Teresa Gubbins from austin.culturemap.com. According to the article: A report by the National Restaurant Association says that the Texas restaurant industry will lead the country in sales growth… Continue Reading

Is Franchising The Only Key To Restaurant Success?

Posted in Contracts, Franchises, Franchising, Legislation, Liability, Litigation, Negotiation

We talk a lot here about franchising and for good reason. After all, many restaurant owners make great money by developing or buying into a great franchise concept. However, some restaurant owners take a  different approach: they develop their own brand and remain the key figure in each additional restaurant. Stephen Pyles is one such… Continue Reading

The Top 5 Considerations Before Buying A Restaurant

Posted in Acquisitions, Commentary, Franchises, Franchising, Liability, Negotiation

Despite the “Great Recession”, the restaurant industry continues to thrive. One of the latest great examples of this is the expansion of Asian cuisine. For instance, a new franchise concept called Mama Fu’s is set to open 14 new restaurants in the Dallas area alone over the next several years, according to this article from… Continue Reading

Is Your Restaurant Recipe Safe?

Posted in Acquisitions, Contracts, Franchises, Franchising, Intellectual Property, Liability, Litigation

Did you know that KFC uses two different companies to blend the herbs and spices that make up its secret recipe? One company blends part of the spices, the other blends the remaining spices, and a computerized processor mixes them together so that neither company knows the full recipe. Like the Colonel, you may have… Continue Reading

How To Finance Your Restaurant Purchase

Posted in Acquisitions, Contracts, Franchises, Franchising

The recent economic struggles have given rise to a host of financing opportunities, and you should consider them all when buying your restaurant. Traditional Financing It’s no surprise that you can go to a bank to finance a restaurant purchase, but which bank and what are your options? These are hard questions. Traditional financing is… Continue Reading

Which Restaurant Franchise Is Right: Fast Food, Fine Dining, or Somewhere In Between?

Posted in Acquisitions, Competition, Contracts, Franchises, Franchising, Liability

We’ve talked a lot about franchises in prior posts. Assuming you have decided that a franchise is in your future, how do you know which type is right for you? This question comes to us quite a bit, so here are some thoughts to consider in each of the common types of franchises: Fast Food… Continue Reading

Can You Walk Your Restaurant Lease When Times Are Bad?

Posted in Acquisitions, Franchises, Franchising, Liability, Litigation, Real Estate

Many restaurant owners think that the need to close a restaurant involves a lot of pain and headache from landlords among others. Certainly, that’s the case often, but there are some options that that may be available to make this less painful than necessary. As such, here are some things to consider if you think… Continue Reading

Are Your Waiters And Managers Stealing You Blind?

Posted in Employees & Waitstaff, Employment, Franchises, Franchising, Liability, Litigation

As I’m sure you already know, theft is one of the absolute biggest problems that restaurant owners face. You started your restaurant to have more time, but now that’s eaten up by watching all of the employees constantly. The problem is further compounded by the fact that even if caught, you’re not likely to ever… Continue Reading

Are Texas Restaurants Required To Serve Free Water?

Posted in Alcohol, Competition, Franchises, Legislation, Litigation, Recent Law Trends

One of our dedicated blog followers recently asked whether Texas restaurants are required to serve water without charge. I had heard for years that this was a law, but since I did not already know the answer, I looked into this further. The results were surprising. It seems that at least at the state level,… Continue Reading

5 Ways to Avoid Costs of Acquiring Restaurants

Posted in Acquisitions, Contracts, Corporate Entity, Franchises, Negotiation, Real Estate, Vendors

All too often the margins of restaurant acquisition require stringent cost control. To help, here are five things to keep those costs low when considering the purchase of a restaurant: 1. Assemble Your Team – It’s hard to decide when to get your team of counselors (like attorneys, accountants, appraisers) involved in a deal. If… Continue Reading

Put More Money in Your Pocket: Perform a Lease Audit

Posted in Contracts, Franchises, Litigation, Negotiation, News, Real Estate

  Did you know that you have a 90% chance of overpaying operating costs (CAM, Taxes and Insurance) under your lease, if you fail to check the calculation for accuracy. This comes from the December 2009 edition of Commercial Tenant’s Lease Insider. Many landlords do not take the time to reflect tenant-specific exclusions, caps, etc…. Continue Reading

Partnership Mistakes and How to Avoid Them

Posted in Acquisitions, Competition, Contracts, Corporate Entity, Franchises, Intellectual Property, Litigation, Real Estate, Vendors

Nearly anyone who has been in business either knows of or at least has heard of the pitfalls of partnerships. However, a lot of people don’t know that you can be partners with someone and not even know it. You might say, “Funny lawyer. Who cares?” But you should care, and here’s why. Partnerships make… Continue Reading

Is Your Restaurant Business Down? 5 Things That May Help

Posted in Commentary, Competition, Franchises, Litigation, Negotiation, Real Estate, Vendors

In our last post, we wrote about 5 Things Not To Do when your restaurant business is down. This week, we’re talking about 5 Things That May Help in the event that you have more people to pay than funds to pay with. Therefore, take it from some restaurant lawyers that have seen many mistakes,… Continue Reading

Is Your Restaurant Business Down? 5 Things Not To Do

Posted in Contracts, Corporate Entity, Employment, Franchises, Litigation, Negotiation, Real Estate, Recent Law Trends, Vendors

It’s no secret that many restaurants are suffering from the current recession, which is hopefully going to end soon. As a result, many restaurant owners are faced with the dilemma of “who to pay” when there’s not enough funds to pay everyone. In situations like these, it’s easy to make a misstep. With that in… Continue Reading

5 Things Your Restaurant Insurance Won’t Protect You From

Posted in Contracts, Corporate Entity, Franchises, Litigation, Negotiation, Vendors

We all know that insurance is the best protection from most forms of liability in a restaurant. However, there are a variety of things that insurance doesn’t protect against. Here are five things often omitted from insurance coverage, and some solutions to this issue. 1. Creditors In General – Creditors come in a variety of… Continue Reading

How To Turn Your Competitors Into Assets

Posted in Acquisitions, Commentary, Competition, Corporate Entity, Franchises, Negotiation, Vendors

The start of a new year often reminds us to try new things. I suggest that this year you try turning your competitors into assets. There are a variety of ways to do this, but this post will show one unique and forgotten strategy of achieving this goal. If You Can’t Beat’em, Join ‘Em Believe… Continue Reading