Perspectives on Non-traditional Franchise Ownership Structures

Insights: Events Perspectives on Non-traditional Franchise Ownership Structures

41st Annual Forum on Franchising

Friday, October 12, 2018

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As multi-unit franchise ownership becomes more prevalent, and franchisees become more sophisticated, the formation of simple corporate entity structures (e.g., corporations and LLCs) is often not enough. Franchisees are creating and utilizing more elaborate arrangements, such as ESOPs, trusts, and non-profit entities. These arrangements – along with the ownership of multi-unit franchisees by private equity funds and publically-held franchisees, and joint ventures between franchisors and franchisees – often lead to franchise agreement modifications and other adjustments designed to address the special needs of these non-traditional owners. Should and must franchisors be willing to sell – and permit transfers to – these non-traditional owners? And, if so, what are the pros and cons of making modifications to franchise agreements and to the franchise system (e.g., as to confidentiality and non-competition, ownership and management, and transfers and permitted transferees)? Also, how do these modifications change the nature of the franchisor-franchisee relationship, and the dynamics within the franchise system? Come learn all about the features and needs of these non-traditional franchisee ownership structures, and how franchisors are dealing with them.

Event Details

Friday, October 12, 2018

Omni Nashville Hotel
250 5th Avenue South, Nashville, Tennessee 37203

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1:45 p.m. - 3:00 p.m.

CLE Credit

States typically decide whether a program qualifies for CLE credit in their jurisdiction 4-8 weeks after the program application is submitted. For many live events, credit approval is not received prior to the program.

The ABA directly applies for and ordinarily receives credit for live, in-person programs in AK, AL, AR, AZ, CA, CO, CT, DE, GA, GU, HI, IA, IL, IN, KS, KY, LA, ME, MN, MS, MO, MP, MT, NH, NJ, NM, NV, NY, NC, ND, OH, OK, OR, PA, SC, TN, TX, UT, VT, VA, VI, WA, WI, and WV.

The ABA will seek 14.0 hours (including 1.0 ethics hours and 1.0 bias hours) of CLE credit for this program in 60-minute states and 17.0 hours (including 1.4 ethics hours and 1.2 bias hours) of CLE credit for this program in 50-minute states. Credit hours are estimated and are subject to approval from each state’s approval and credit rounding rules.

Special rules apply to lawyers from certain states.