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 I'm part of a fairly large group of people who bought a "license" to operate a business. Now the company sent us all a letter asking us to convert to their new franchise program. It says our license is to close to a franchise and it's in our best interests to convert. Any suggestions? Thank you for your time.
Going to the specifics of what you asked, the franchise vs. license issue is becoming more and more common these days. There is an excellent article that addresses the franchise vs. license topic at:
Many companies, after finding out the legal and financial requirements to put together a franchise program, try to do it on the cheap by calling the program a license. What they are unfortunately selling is an illegal franchise, a disguised franchise, that can have serious repercussions down the road. For example, when regulatory agencies come across these, they routinely require the company to offer the buyers all their money back and rescind the contract. There is also the distinct possibility that one or more buyers of the disguised, illegal franchise may bind together and collectively pursue the company for similar relief.
You mentioned the company is now offering a franchise program and wants all the license holders to convert to that. That shows they finally obtained competent, legal advice that they were really selling illegal franchises. Just calling these a license does not skirt the franchise laws at all. Their conversion strategy will only work if everyone goes along with the program.
My advice is you need to show your license agreement and all pertinent correspondence to a competent franchise attorney. You and others in your group may have significant rights that were violated.
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