DESCRIPTION:

John Hayes, host of Franchise Hot Seat, engages in a detailed discussion with Alaina 

B. Karsten from McDonald Hopkins, a professional with significant experience in 

advising franchisors and franchisees and handling litigation. The conversation 

revolves around the intricacies and potential risks associated with franchising, 

underlining the necessity of carefully examining franchise agreements and fully 

comprehending the long-term commitments and responsibilities they entail. Alaina 

underscores the importance of franchisees performing due diligence, seeking legal 

counsel, and fully understanding their contracts, particularly in relation to 

termination, renewal, and the use of advertising funds. She provides insights into 

frequent legal issues such as curable and non-curable defaults, franchisor price 

control, and the rights of franchisees in the event of disputes. The discussion also 

covers the challenges and possible advantages of franchise investment, highlighting 

the benefits of economies of scale and the significance of comprehensive franchisor 

support and training.

- With Alaina B. Karsten.

TIMESTAMPS:

00:00 Intro

00:22 Franchising realities vs expectations?

03:07 Does franchising offer advantages?

04:26 Biggest franchising risks/costs?

07:12 Key franchise agreement clauses?

12:14 Curable vs non-curable defaults?

17:00 Franchisee due diligence checklist?

21:04 Trademark requirements for franchisors?

23:28 Resolving franchise disputes how?

33:45 Advertising fund obligations fair?

LINKS:

WEBSITE: http://franchisehotseats.com/

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