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
Category Archives: Franchising
Subscribe to Franchising RSS FeedThe Changing Nature Of Restaurant Real Estate
Posted in Acquisitions, Commentary, Franchises, Franchising, News, Real EstateFor 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, NegotiationRestaurant 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 TrendsJust 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 EstateLeasing 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
Is Franchising The Only Key To Restaurant Success?
Posted in Contracts, Franchises, Franchising, Legislation, Liability, Litigation, NegotiationWe 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, NegotiationDespite 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, LitigationDid 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, FranchisingThe 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, LiabilityWe’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
To Partner Or Not To Partner: Top Things To Consider Before Bringing On A Restaurant Partner
Posted in Acquisitions, Corporate Entity, Franchising, Litigation, Recent Law TrendsMany of my clients think that partners and shared ownership are great. They are right, to a point, but there are often times that partners are more a pain than a benefit. With that in mind, I thought I’d share some of the benefits and drawbacks of partnering your restaurant business. Benefits of A Restaurant… Continue Reading
Can You Walk Your Restaurant Lease When Times Are Bad?
Posted in Acquisitions, Franchises, Franchising, Liability, Litigation, Real EstateMany 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, LitigationAs 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
Is Your Restaurant Franchisor Being Unfair?
Posted in Franchises, FranchisingIn a perfect world, franchisee relations with a franchisor would be perfect. However, life’s not perfect or fair, and disputes do arise. That’s one area that we lawyers come in handy. What Does The Franchise Agreement Say? In Texas, the right to contract prevails. In other words, the text of the contract usually determines the… Continue Reading
Is A Restaurant Franchise Right For You?
Posted in Acquisitions, Franchises, Franchising, NegotiationWe’d all like to become the next great franchise with the wealth and notoriety that goes with it. However, not all franchises are created equal, and even more often, a franchise itself is not even the right fit. New To Restaurants? If you’re not already a restaurant owner, the question is “to franchise or not… Continue Reading