After two years of mainly “doom and gloom” in this industry, we are all looking forward to a new and hopefully, profitable New Year. However, for a substantial number of franchisees, a day of reckoning is at hand before they can hope to see a bright future. Unfortunately, there are still a lot of over-leveraged franchisees whose loans are under performing or about to go into either a technical or material default...

The Dilemma... Currently, many franchisees are experiencing difficulties in meeting the requirement set out by their franchisor for redevelopment of their older stores. Most franchisees do not have the reserves to pay for a redevelopment of their assets out of pocket...

The sale of corporate stores to franchisees ("refranchising") has been an effective tool for many franchisors to raise cash for debt reduction, acquisitions, brand expansion and new development. The franchisor also benefits from additional royalty streams and new development agreements with its franchisees...

The sale of corporate stores to franchisees ("refranchising") has been an effective tool for many franchisors to raise cash for debt reduction, acquisitions, brand expansion and new development. The franchisor also benefits from additional royalty streams and new development agreements with its franchisees...

As a practicing attorney and franchise business consultant for over 20 years, I constantly have listened to clients and prospective clients gripe about the high cost of legal fees and / or professional fees such as attorneys, accountants or other business consultants.

Good times don’t last forever.  If a franchisee is experiencing financial problems, this presentation to the Dallas Bar Association will discuss the factors a franchisee should consider in trying to regain financial stability and profitability.