Franchisor Restructures Its National Franchise Program


A franchise client with a long-standing, nationwide franchise system was acquired a few years earlier by a Fortune 500 company. The parent company wanted to restructure the franchise program to increase franchisee purchases from the parent company, and provide more limited services to franchisees in exchange for dramatically lower franchise fees. The team of Chuck Modell and Pam Merkle assisted the client in structuring its new franchise program, drafting the series of new and revised agreements and disclosure documents required to implement the new system, including conversion documents for franchisees who wanted to convert and franchisee buyouts for those that did not want to continue in the system. Throughout the conversion process, the team also assisted the client in dealing with existing franchisees’ issues and concerns, with the objective of minimizing disputes, and maximizing franchisee buy-in to the new program.