Showing articles for Charles S Modell
Showing Results 1 - 20 of 53

  • Changes in Item 19 Disclosure Requirements Take Effect Next Week

    10/25/2017 / Chuck Modell

    We have previously written about the changes required to Item 19 disclosures based upon the adoption in May of the new NASAA financial performance representation (FPR) commentary. If your franchise disclosure document (FDD) has an effective date of May 9 or later, then you only have until next Saturday, Nov. 4, to update the Item 19 disclosures in your FDD.

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  • Spotlight: Ed Driscoll

    09/13/2017 / Chuck Modell

    In 1971, Governor Wendell Anderson appointed Edward J. Driscoll as Minnesota’s Commissioner of Securities and Chairman of the Minnesota Commerce Commission, where he was responsible for the regulation of financial service industries, including insurance, state chartered banks, securities, and real estate.

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  • NASAA Adopts New Rules on Financial Performance Representations

    05/17/2017 / Chuck Modell, Joe Fittante and Sawan Patel

    On May 8, 2017, the North American Securities Administrators Association, Inc. (“NASAA”) formally issued new guidance, the NASAA FPR Commentary (the “Commentary”), to clarify what constitutes a reasonable basis in making a financial performance representation (“FPR”)—with specific guidance for a variety of common FPRs that are made in Item 19 of Franchise Disclosure Documents (“FDDs”). The Commentary provides welcome guidance to franchisors that have been reluctant to include FPRs in their FDDs, or whose efforts to include FPRs have been rebuffed by state franchise examiners, but it will ultimately require all franchisors that currently include an FPR in their FDD to revise their FPR.

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  • SBA Announces Valentine’s Day Changes to SBA Loan Program for Franchises

    02/15/2017 / Charles Modell and Sawan Patel

    Yesterday afternoon, the U.S. Small Business Administration (SBA) announced temporary changes to the recently revised franchise review process for its 7(a) and 504 loan programs. The changes are intended to facilitate SBA loans for franchisees of franchise systems who have previously been on the SBA’s Franchise Registry or otherwise negotiated an SBA Addendum to their franchise agreements.

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  • 2017 Checklist for Franchisors: Updating Your FDD

    01/30/2017

    Chuck Modell's article, "2017 Checklist for Franchisors: Updating Your FDD" was published by the International Franchise Association on Jan. 29, 2017.

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  • Get it in Writing, so a Deal Doesn’t end in Buyer Beware

    01/02/2017 / Chuck Modell

    Chuck Modell contributed the article, "Get it in Writing, so a Deal Doesn’t end in Buyer Beware" to the Dec. 2016/Jan. 2017 edition of Upsize Magazine.

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  • Show the Numbers to Sell More Units

    09/30/2016 / Charles Modell

    Chuck Modell's article, "Show the Numbers to Sell More Units" was published in the Sept. 2016 edition of Franchise Times.

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  • California Franchise Relations Act – Are Your Franchise Transfer Standards Ready to Hand to Franchisees?

    05/10/2016 / Charles Modell

    In the last issue of this newsletter, Henry Pfutzenreuter wrote a detailed article outlining the recent ‎Amendments to the California Franchise Relations Act (the “CFRA”).[1] The Amendments addressed ‎issues that were already covered in the franchise relationship laws of several other state statutes. ‎Thus, when we went through the franchise filing renewal season, the only change we needed to make ‎to our clients’ Disclosure Documents was to expand the language of the California addenda to confirm ‎our clients would comply with the transfer provisions of the amended law, since the existing version of ‎the CFRA had not addressed transfers. However, as we look to the future, there is one requirement of ‎the CFRA transfer provision that is already keeping franchisors awake at night, and you want to get ‎ahead of the issue.‎

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  • Update on Financial Performance Representations (FDD Item 19)

    01/19/2016 / Charles Modell

    In January each year, Franchise Times features their annual “20 to Watch” in franchising for the year. In addition to listing our long time client, Anytime Fitness, at the top of the list, this year’s list includes the North American Securities Administrators Association’s pending Commentary on financial performance representations as one of the top 20 things or people to watch in franchising in 2016. In our last newsletter, we reported that the Commentary had been issued for public comment. NASAA received extensive comments, and the task force that issued the Commentary has been scheduling at least two conference calls a month to work their way through the comments. What does this mean for franchisors?

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  • Collect Releases Like you Collected Baseball Cards

    11/30/2015 / Charles Modell

    Chuck Modell's article, Collect Releases Like you Collected Baseball Cards, appeared in the Fall 2015 edition of The Franchise Lawyer.

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  • Keys for Successfully Mediating Franchise Disputes

    10/28/2015 / Charles Modell

    Chuck Modell's article, Keys for Successfully Mediating Franchise Disputes, appeared in the Fall 2015 edition of the Law Journal Newsletter's – Franchising Business & Law Alert®.

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  • The ABCs on NASAA’s Proposed Changes to Financial Performance Representations

    10/07/2015 / Chuck Modell

    On October 1, 2015, the North American Securities Administrators Association (“NASAA”) ‎published 19 proposed Questions and Answers addressing the preparation of financial ‎performance representations (“FPRs”). This proposed “Commentary,” discussed in this article, would likely affect most franchisors that make FPRs in their franchise disclosure document. Franchisors, franchisees, and other interested parties have until November 2, 2015 to submit ‎comments to NASAA on the proposed Commentary. If no comments are received, the ‎Commentary will likely become law, as written, in 2016.‎

    Some portions of the Commentary will be welcome clarifications that should reduce the ‎number of inconsistent comments franchisors receive from state regulators who review their ‎franchise filings. Others will impose burdensome requirements. We urge you to read the ‎Commentary carefully, and consider commenting on provisions you believe will be problematic ‎for your system. The task force that prepared the Commentary will review every comment ‎received. To the extent you can show that a proposed change will not be of significant benefit to ‎franchisees, or that the cost of complying outweighs the benefits to prospective franchisees, or ‎that a proposed change will likely cause many established franchisors to stop making FPRs, your ‎comments will receive more significant consideration.

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  • Mistakes Happen. To Head Them Off, Training Program for Sales Team is a Must

    11/26/2014 / Chuck Modell

    Chuck Modell's article, "Mistakes happen. To head them off, training program for sales is a must," was published in the November/December 2014 edition of Franchise Times magazine. 

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  • How Many FDDs Do I Need? New Rules on Disclosing Multi-Unit Franchising Arrangements

    11/12/2014 / Chuck Modell and Sawan Patel

    On September 16, 2014, the North American Securities Administrators Association (“NASAA”) adopted the Multi-Unit Commentary (the “Commentary”) that provides guidance on how multi-unit franchise arrangements are to be disclosed in Franchise Disclosure Documents (“FDDs”). Multi-unit franchise arrangements are known by a myriad of names—including area development, subfranchising, and area representation—but the new guidance is crystal clear: if you are a franchisor with multi-unit franchise arrangements, you will have additional work to do in your next franchise renewal cycle, and may actually have to create multiple versions of your FDD and filings in the registration states.  

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  • Introduction to Practical Problems and Issues Associated With Buying or Selling a Franchise Company

    06/19/2014 / Chuck Modell

    Chuck Modell was a contributing author to the book, Mergers & Acquisitions of Franchise Companies published by the ABA Franchise Forum. 

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  • New Arbitration Appellate Procedures Change Playing Field

    04/15/2014 / Chuck Modell and Sawan Patel

    In the April 2014 issue of the Law Journal Newsletter's – Franchising Business & Law Alert,® Chuck Modell and Sawn Patel co-authored the article, New Arbitration Appellate Procedures Change Playing Field. 

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  • Reducing Your Brand’s Exposure to Liability

    11/01/2013 / Chuck S Modell

    Chuck Modell coauthored the article, Reducing Your Brand's Exposure to Liability, in the November 2013 issue of Franchising World.

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  • Franchisor Handbook: When franchisees struggle, fast action may ward off the worst

    02/01/2013 / Charles S. Modell

    All businesses have their challenges, and franchisees are no exception. Unfortunately, franchisors often do not recognize a franchisee has a problem until the royalty check is late.  

    While it is the franchisee’s responsibility to operate its business, if you are a franchisor and want to avoid long-term problems with franchised units, you should make it known to franchisees that you are there to help them, and they should call you at the first sign of a significant downturn or operating issue.  

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  • The 3 Elements to Avoid Accidental Franchise

    07/10/2012 / Franchise & Distribution Practice Group

    Chuck Modell contributed an article to the LQ Patent Newsletter titled The 3 Elements to Avoid the Accidental Franchise. Modell discusses three elements to avoid when licensing intellectual property to others.

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  • Achieving Consolidation and Unit Growth Through Private Equity

    03/20/2012 / Chuck S. Modell

    Chuck Modell published an article that was featured in the March edition of the International Franchise Association's Franchising World magazine.

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Showing Results 1 - 20 of 53