LEAHY, EISENBERG & FRAENKEL, LTD.’s Post

📜 Franchise Agreements & Personal Guarantees: Treading Carefully ⚖️ When diving into the franchise world, many budding franchisees are surprised by a common clause in franchise agreements: the 'personal guarantee'. While these guarantees can offer franchisors a layer of security, they can sometimes place an undue burden on franchisees. Why Personal Guarantees? They serve as an assurance for the franchisor, ensuring that if a franchisee's business fails to meet financial obligations, the franchisor can seek payment directly from the franchisee's personal assets. Concerns for Franchisees: 1️⃣ Risk to personal assets: A failing franchise could jeopardize personal properties or savings. 2️⃣ Potentially unlimited liability: Some guarantees have no cap, leaving franchisees exposed to extensive financial risks. Ways to Protect Yourself as a Franchisee: 🔐 Negotiate: While franchisors might be firm on including a guarantee, there’s often room to negotiate its terms. Perhaps limit the amount or duration. 🔐 Legal Counsel: Always engage a franchise attorney. They can offer insights into the agreement's fairness and potential red flags. 🔐 Insurance: Some insurance policies can cover liabilities arising from personal guarantees. It's worth exploring. 🔐 Separate Business from Personal and Estate Planning: Forming an LLC or corporation or creating a personal estate plan can provide an additional layer of protection, though it's not foolproof. In conclusion, while personal guarantees serve a purpose, it's crucial for franchisees to be well-informed and proactive in safeguarding their interests. Franchise veterans and newcomers alike, what's been your experience with personal guarantees? Any tips or stories to share? #franchising #franchise

Subject: Regarding Fraudulent Franchise Deal with Hoora Car WashingTo Whom It May Concern,I am writing to you with grave concern regarding the fraudulent actions of your sales representatives, Pankaj and Aayush Sharma, in relation to the franchise deal we had discussed and agreed upon.Initially, your team approached me with an attractive franchise opportunity for your Hoora door-step car washing business. After several rounds of negotiations, we came to a mutually acceptable agreement on the terms and conditions, which I duly accepted in good faith.However, I am deeply troubled to find that your representatives are now going back on their word and demanding a higher amount for the same franchise deal. This is an unacceptable and dishonest practice that goes against the principles of fair business.I expect you, as the company leadership, to immediately intervene and honor the original agreement we had reached. Reneging on our deal and attempting to extract more money is a clear breach of trust and will only serve to damage the reputation of your brand.I urge you to resolve this matter promptly and professionally. If the current situation is not rectified to my satisfaction, I will have no choice but to pursue further legal action to protect my interests.I await your prompt response and a swift resolution to this issue.Sincerely,Sagar Verma9720003905 HooraYashwant Budhwani

There are many advantages to #franchising with #DRYmedicRestoration. My favorite thing though, is our commitment to our customers. Customers are the priority, they are not just a number. Please reach out to learn more. #customerfirst #franchiseopportunity #restoration

Are unnoticed policy lapses leaving your franchise vulnerable? The potential for unnoticed policy lapses adds to franchisors' frustrations. A COI doesn't indicate if a policy has lapsed, which could leave franchisees uninsured and vulnerable to liabilities, impacting the entire franchise brand. Rikor Insurance Program can help by ensuring continuous coverage and preventing gaps in your franchisees' insurance policies. #franchise #franchising

Did you know❓ Opportunities are booming for #franchise owners in the restoration industry. The water damage #restoration industry is expected to grow at a rate of 6.8% annually from 2020 to 2025, according to market data reports from Gitnux. 👉 Learn more about the DRYmedic Restoration Services franchise opportunity in a growing industry! #Franchise #AuthorityBrands #Entrepreneur

‘We Buy Ugly Houses®, Explained:’ 9 Things to Know About the House Flipping Franchise #FlippingInvestingShortSales #SellingAdvice | BidBuddy.com

🚨WARNING: Avoid Franchise Property Inventory Providers! Franchise property inventory providers are jeopardising your business! Here’s why: 1. Inconsistent Quality: 🛠️ Franchise providers often employ inexperienced staff, leading to unreliable and inaccurate reports. 2. Hidden Costs: 💸 Beware of surprise fees and escalating charges that eat into your profits. 3. Poor Accountability: 🕵️ Franchises can lack proper oversight, resulting in negligence and errors. 4. Impersonal Service: 🤖 Franchise providers treat you like just another number, not giving the personalised attention your properties deserve. 5. Risk of Fraud: ⚠️ Increased risk of mismanagement and fraudulent activities can result in costly disputes and legal battles. Protect your investments and reputation by choosing PRMS, an accredited independent provider known for quality and personalised service! 🏡🔒 #PropertyManagement #Landlords #LettingAgents #RealEstate #BusinessWarning #AvoidFranchises #ChooseIndependent #PRMS #PropertyInventory #PropertyInventories

Do your franchisees struggle with insurance requirements? Your Rikor Insurance Program can provide clarity and support. Franchisors feel frustrated because their franchisees, often first-time business owners, struggle to understand insurance requirements outlined in the FDD. This lack of comprehension can lead to inadequate or incorrect coverage, exposing the franchise to unnecessary risks. #franchise #franchising

“If you can’t afford the coverage, you surely can’t afford the claim.” Franchise Solutions Manager John Cassetta shares his insights with Franchise Update Media on today's volatility in the food franchise industry. John explains the importance of assessing and protecting against risks before opening, expanding, or closing a food franchise. Read more: https://lnkd.in/g4Ac-Qa2 #franchise #risk #restaurants #insurance

Have you ever dreamed about opening your own nail salon? Open your own Bellacures location and we will be there to help you every step of the way. More information: https://lnkd.in/g8RgNJqC * This information is not an offer to sell, or a solicitation of an offer to buy a Bellacures franchise. An offer can only made through a Franchise Disclosure Document, first registered (if necessary) with the appropriate jurisdiction (s). Bellacures will not extend a franchise offer unless we are in full compliance with all applicable laws of the relevant jurisdiction (s). Registration of a Franchise Disclosure Document with any state does not constitute approval, recommendation, or endorsement of the franchise by the state, or a finding that the information contained in the Bellacures Franchise Disclosure Document is true, complete, or not misleading. All content is for informational purposes only. The contents are not directed to residents of any specific state or other jurisdiction.