AboutFranchise Attorney Franchise Expert MBA - Kevin B. Murphy - Mr. Franchise & Former Franchise Owner Expertise Franchise Attorney, MBA Franchise Expert, author and instructor with 2-plus decades of franchise industry experience, including ownership of a successful franchise. I answer all business format franchise questions, how to franchise a business, issues about ongoing franchise relationships, buying a franchise, evaluating franchise investments, franchising vs. licensing (franchise vs. license), franchise disputes, franchise operations manuals, franchise expert advice in franchise lawsuits and franchise litigation, franchise agreements, franchise disclosure documents FDD and intellectual property. I don't answer questions about franchises in the automotive and petroleum industries. I have drafted, reviewed and negotiated over 500 franchise disclosure documents, advised hundreds of franchise buyers and franchise companies as well as started and operated a franchise from scratch - a background not duplicated by any other franchise expert. My in-the-trenches franchise ownership and resale experiences gave me valuable insights to share with potential franchise buyers and existing as well as emerging franchise companies.
Experience Known in the industry as Mr. Franchise, I have owned, operated and sold a very successful franchise in the home improvement industry. I help individuals and companies enter and prosper in the franchise industry, have drafted, reviewed and negotiated over 500 FDD's (Franchise Disclosure Documents) and have experience filing franchise registrations in all franchise registration states such as California, Illinois, New York, etc.
Publications Author of over 40 franchise articles, including four books on franchising and one book on trade secrets.
Avoiding Legal Pitfalls In Franchise Marketing
2009, Franchise Foundations Press
Franchise Sales Control
2009, Franchise Foundations Press
Also authored foreword and edited various chapters of the following book:
The Franchise Handbook: A Complete Guide to All Aspects of Buying, Selling or Investing in a Franchise
2006, Atlantic Publishing Company
Education/Credentials
B.S. Business Administration (Finance), University of San Francisco,
Juris Doctorate (J.D.) of Law, University of San Francisco School of Law,
Active member of the State Bar of California
Master of Business Administration (M.B.A.) - International Business, San Francisco State University,
Approved Provider of MCLE by the State Bar of California, 1993 to present
Teaching franchise, licensing and intellectual property courses to attorneys
Awards and Honors Selected as the premier U.S. franchise expert by the World Intellectual Property Organization (WIPO), an agency of the United Nations, in Geneva, Switzerland to speak at Singapore’s World Conference about franchising in Asian countries and developing uniform franchise regulations based on the U.S. franchise laws and regulatory model, September, 2007, hosted jointly by WIPO and the Intellectual Property Office of Singapore (IPOS).
Snapshot of Recent Franchise Expert Litigation Cases:
Nagrampa v. MailCoups Inc. and The American Arbitration Association - United States Court of Appeals for the Ninth Circuit (Argued and Submitted En Banc). Summary: provided franchise expert strategy and consulting in a case that established new franchise law by invalidating the standard arbitration provision in a California franchise agreement on the grounds it was unconscionable.
Swansons Cleaners, et al. (Superior Court jury trial). Summary: provided franchise expert consulting that re-focused the legal issues and discovered new causes of action. Testified at deposition and trial for a franchisee in its claims against the franchise company. Result: jury verdict in favor of the franchisee for $1.6 million in punitive damages and $634,000 in contract, etc. damages.
Question When I purchased my first franchise, I also opted to purchase a second. I paid the fee for both with the agreement that I would open the second location within 12 months of the first (my first mistake!). It is now 18 months later and I have closed the first location because I lost money (my second mistake!). Obviously, I am not financially able to open the second franchise. Can I get a refund on the fee paid for the second franchise on the grounds that I did not sign a separate Franchise Agreement for the second franchise and I did not receive an updated FDD when I was expected to open the second?
You need to show whatever you signed to a franchise attorney for competent advice. Franchise Foundations has a free franchise legal help advice hotline where you can contact a franchise attorney at:
I've seen the mistake you discuss happen time and again - committing to multiple locations (and paying for them) before seeing if the first one ever pans out.
To answer your refund question. It all depends on the terms of the agreement(s) you signed. The contract(s) may or may not require that you sign a separate franchise agreement for the second franchise. For example, it may just have specified the opening dates for the first and second franchises, and provided that all fees paid are non-refundable
Not receiving an updated FDD is another issue. Usually, unless other factors are present (and they don't appear to be) the only FDD they must provide is one that is current in time with when you made your franchise investment decision - that is when you decided to open two of them within 12 months.
Again, the smart thing for you to do at this point is consult with a franchise attorney. They may be able to find other strategies for you to pursue. For example, everything that was required to be disclosed may not have been disclosed properly.
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