Introduction

• Author: Steven M. Goldman, H. Bret Lowell.

Introduction

The Franchise Law Compliance Manual represents a long-overdue and essential

addition to every franchise lawyer’s library. Designed as a working tool for both

corporate franchise lawyers and their outside counsel, The Franchise Law Com-

pliance Manual is a practical, comprehensive guide to establishing and main-

taining a successful corporate compliance program. From intellectual property to

termination, this Manual covers every aspect of franchise law. To ensure com-

plete, well-rounded coverage of the topics, each chapter was prepared by attor-

neys with experience as in-house corporate counsel, and experience working as

outside counsel to franchisors. The same pattern was chosen in selecting the

Manual’s editors. The result of these collective efforts: a manual unparalleled in

scope and breadth of coverage of franchise law from a compliance perspective.

A discussion of a corporate compliance program must first begin with intel-

lectual property, the foundation of a franchise system. Chapter 1, Proprietary

Rights, focuses on the importance of protecting a company’s intellectual property

rights. The authors, William Finkelstein and Anthony Stiegler, discuss the vari-

ous types of intellectual property and show how best to obtain, maintain, and

enforce these proprietary assets. The authors also provide numerous checklists

and forms that the franchise law practitioner will find useful (for example, Intel-

lectual Property Assets Inventory, Searching and Clearance of New Trademarks,

International Protection, Trademark Infringement Report). In addition, the

authors include several sample trademark provisions that are commonly found

in franchise agreements.

As the system grows, franchisors must establish methods for easing compli-

ance with federal and state laws that affect the franchise relationship. Chapter 2,

Franchise Sales and Managing Growth, begins with a general overview of both

federal and state laws and regulations on franchising. The authors, Mark Forseth

and Grover Outland, offer tips on proper document filing and control, and then

examine how to implement and monitor sales compliance policies. They also

address how an effective compliance program can reduce the risk of litigation,

especially in the context of non-traditional system expansion (for example, alter-

nate channels of distribution, intra-brand competition). To supplement their dis-

cussion, the authors have included sample checklists and exhibits to help track

the sales compliance process.

Chapter 3, Franchise Records Managements, embarks on a more detailed dis-

cussion of the importance of proper document control procedures. A records

management program is integral to the success of a franchisor’s overall compli-

ance program. A properly designed records management system can increase

employee productivity, facilitate access to important records, and protect records

from theft. Charles Cannon, Jerry Lovejoy, and Ken Minami examine how fran-

chisors can most effectively design and administer a corporate records manage-

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