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Champs Chicken Franchising in Violation of Franchise Investment Protection Act

On January 25, 2017, the Securities Division entered into a Consent Order with Respondent Champs Chicken Franchising LLC of Holts Summit, Missouri. In the Consent Order, the Securities Division alleged that Champs Chicken violated the Franchise Investment Protection Act by offering and selling franchises to two state residents while not registered to do so and failed to provide prospective franchisees with a franchise disclosure document with current material information about the franchise offering. Without admitting or denying the Securities Division’s allegations, Respondent agreed to cease and desist from violations of RCW 19.100.020 and RCW 19.100.080, the registration and disclosure document portions of the Franchise Investment Protection Act. Respondent Champs Chicken Franchising LLC agreed to pay investigative costs of $3,000 and waived its right to a hearing and judicial review of the matter.

Champs Chicken Franchising Consent Order

https://drive.google.com/file/d/0BzVbQqmq19HwYXBLV2E3UVJ2LW8/view?usp=sharing

Get the full Champs Chicken franchise report here.

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McDonald’s Facing Multiple Complaints of Sexual Harassment

Sexual harassment can occur at any place of employment – be it a small family-owned business or a big, multi-national company. It can happen at a private firm or a government agency. One thing is for certain — there are laws that protect victims of sexual harassment and it is not something that an employee has to tolerate.

Take McDonald’s for example. As recently reported, over the last month, 15 separate complaints have been filed with the Equal Employment Opportunity Commission against McDonald’s, alleging sexual harassment. The sexual harassment ranged from inappropriate physical touching (e.g. groping) to lewd comments to offers of cash in exchange for sexual favors, often by managers. McDonald’s employees alleged that not only were they sexually harassed at work, but their complaints to management about the sexual harassment were ignored and were not properly – if at all – dealt with by McDonald’s management. In some cases, employees who complained about sexual harassment then experienced retaliation. Unfortunately, many employees don’t realize that retaliation for complaining about sexual harassment is also prohibited, in the same way as the sexual harassment itself is prohibited.

If you believe you or someone you know is the victim of sexual harassment in the workplace, or if you feel that you have been retaliated against for complaining to your employer about sexual harassment, please contact our office at 312-357-1431 for a free consultation.

McDonald’s Facing Multiple Complaints of Sexual Harassment

Law Office of Jeffrey Freidman, P.C.
120 S. STATE STREET, SUITE 400
CHICAGO, ILLINOIS 60603
http://jmflaw.com/

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Blaze Pizza Franchise Costs & Fees

How Much Does it Cost to Open a Blaze Pizza Franchise?

The estimated initial investment of a Blaze Pizza franchise is $394,000 to $902,000. Below you will find a breakdown of the initial investment costs associated with buying a Blaze Pizza Franchise.

This Pie chart shows a breakdown of the initial investment required to start a Blaze Pizza Franchise.
The amount displayed for each investment category is the maximum amount. See the Estimated Initial Investment Table below for the low end of each category.

Estimated Initial Investment of Blaze Pizza Franchise Ownership

Category of Investment
Amount
Method of Payment
When Due
To Whom Paid
Low High

Initial Franchise Fee

$30,000 $30,000 Lump Sum When you sign your Franchise Agreement Blaze Pizza, LLC

Development Fee

$0 $45,000 Lump Sum When you sign your Area Development Agreement Blaze Pizza, LLC

Architect / Engineer

$15,000 $30,000 As incurred As invoiced Approved Suppliers

Project Coordinator

$0 $6,000 As incurred As invoiced Approved Suppliers

Permits

$1,000 $10,000 As incurred As invoiced Approved Suppliers and Government Agencies

Leasehold Improvements

$158,000 $325,000 As incurred As invoiced Approved Suppliers

Equipment

$100,000 $175,000 As incurred As invoiced Approved Suppliers

Furniture and Fixtures

$10,000 $30,000 As incurred As invoiced Approved Suppliers

Smallwares

$10,000 $15,000 As incurred As invoiced Approved Suppliers

Signage and Graphics

$3,000 $20,000 As incurred As invoiced Approved Suppliers

Grand Opening Kit, Menu Boards

$3,000 $5,000 As incurred As invoiced Approved Suppliers

Computer Equipment & Information / POS Systems

$15,000 $20,000 As incurred As invoiced Approved Suppliers

Uniforms

$2,000 $5,000 As incurred As invoiced Approved Suppliers

Initial Inventory and Supplies

$7,000 $15,000 As incurred As invoiced Approved Suppliers

Pre-Opening Advertising

$3,000 $15,000 As incurred As invoiced Approved Suppliers

Grand Opening Free Pizzas

$3,000 $5,000 As incurred As incurred Approved Suppliers

Insurance Deposits

$500 $1,000 As incurred As invoiced Insurance Carrier

First Month’s Rent/ Security Deposit

$7,000 $23,000 As incurred As invoiced Landlord

Initial Training

$5,000 $10,000 As incurred As invoiced Us or Approved Suppliers

Liquor Licensing

$0 $12,000 As incurred As invoiced Approved Suppliers and Government Agencies

Miscellaneous Opening Costs

$500 $10,000 As incurred As invoiced Approved Suppliers

Professional Fees

$1,000 $5,000 As incurred As incurred Your Financial And Legal Advisors

Additional Funds

– 3 Months

$20,000 $90,000 As incurred As invoiced Suppliers and Employees
Total $394,000 $902,000
Area Development Franchise If you purchase the rights to developer multiple Blaze Pizza Restaurants under an Area Development Agreement, you will incur all costs listed above for each Blaze Pizza Restaurants in addition to the Development Fee (which will be credited towards the Initial Franchise Fees

What other fees do Blaze Pizza franchisees pay?

Yes. There are several other fees that must be paid to start a Blaze Pizza franchise business.  You can find a breakdown of the other fees associated with buying a Blaze Pizza franchise below.

Other Blaze Pizza Fees

Type of Fee Amount Due Date Remarks

Continuing Royalty

5% of Gross Sales; may vary for non-traditional locations Due on Wednesday of each week The “Continuing Royalty” is based on “GrossSales” during the previous week. Payments are made via an electronic funds transfer (“EFT”).

Creative Fund Contribution

2% of weekly Gross Sales Same as Continuing Royalty This contribution will be used for a system- wide “Creative Fund” for Blaze Pizza, LLC’s use in developing and building the Blaze Pizza brand. The Franchisor will also use the Creative Fund to pay for the secret shopper rewards program which includes cash rewards paid to the highest scoring Restaurants to be given to your employees by you as bonuses.

Blaze Pizza Certification Training

No charge for initial certifications; Blaze Pizza, LLC’s then current fees for additional certifications or re- certifications
(currently $1,000 per person per week plus expenses)
Prior to beginning of training The Franchisor will provide one certification at no charge for the restaurant manager training certification, new restaurant opening certification and training facility certification. See Note 3 for more information.

Training of Additional or Replacement Personnel

Our then-current charge (currently $1,000 per person) Prior to beginning of training The Franchisor provide Blaze Pizza, LLC’s initial training program at no charge for up to three (3) management persons and one operating principal for your first five Restaurants or until you have a “Certified Training Facility” and a “CRTManager” (as those terms are defined below), whichever comes first. You will be required to pay Blaze Pizza, LLC’s then –current fees for training additional persons.

Registration for Annual Convention

Between $250 and $500 per attendee Payable 30 days after written notice to you unless otherwise specified by the franchisor in writing The Franchisor may charge a per person attendance fee for Blaze Pizza, LLC’s annual convention at which attendance is mandatory by you, or your operating principal or other principal acceptable to us.

Transfer Fee

50% of Blaze Pizza, LLC’s then-current initial franchise fee per Restaurant At the time you request approval of a transfer Payable when you transfer your Franchise or upon any “Assignment” as defined in the Franchise Agreement. Unless The Franchisor approve otherwise, in Blaze Pizza, LLC’s sole discretion, you will not be able to transfer single Restaurants as explained in Note 4 below.

Transfer to Entity

Our actual costs Upon demand If you are transferring the Franchise Agreement to an entity that you control, you will not be required to pay a transfer fee but you must pay Blaze Pizza, LLC’s actual costs.

Securities Offering Fee (Area Development Franchises Only)

The greater of a: (a) non- refundable fee equal to 50% of Blaze Pizza, LLC’s then-current initial franchise fee; or
(b) Blaze Pizza, LLC’s reasonable costs and expenses associated with reviewing the proposed offering
Due when you ask the franchisor to review a proposed securities offering If you plan to offer securities by private offering, you must obtain Blaze Pizza, LLC’s approval. You must submit all documents The Franchisor reasonably request and pay this fee.

Renewal Fee

50% of Blaze Pizza, LLC’s then-current initial franchise fee Upon signing a successor franchise agreement Payable if you qualify to renew your Franchise Agreement and choose to enter into a successor franchise agreement.

Relocation Fee

50% of Blaze Pizza, LLC’s then-current initial franchise fee Upon signing a successor franchise agreement Payable if The Franchisor permit you to relocate your Blaze Pizza Restaurant.

Late Fee

$100 per occurrence, plus lesser of the daily equivalent of 12% per year simple interest or the highest rate allowed by law (“Interest”) As incurred Payable if any payment due Blaze Pizza, LLC or its affiliates is not made by the due date. Interest accrues from the original due date until payment is received in full.

Audit Expenses

Cost of audit and inspection, any understated amounts plus Interest, and any related accounting and legal expenses On demand You will be required to pay this if an audit reveals that you understated your weekly Gross Sales by more than 2%.

Non-Sufficient Funds Fee

$50 per occurrence As incurred Payable if any check or EFT payment is not successful due to insufficient funds, stop payment, or any similar event.

Insurance

Reimbursement of Blaze Pizza, LLC’s costs plus a 20% administration charge On demand If you fail to obtain insurance, The Franchisor may obtain insurance for you and you must reimburse the franchisor for the cost of insurance obtained plus 20% of the premium for an administrative cost of obtaining the insurance.

Site Review and Evaluation Fee

Actual Costs As incurred The Franchisor typically review up to three sites for each Restaurant at no charge. The Franchisor may charge you this fee, in the sole discretion of Blaze Pizza, LLC, if you are required to submit more than three sites.

Rescheduling Expenses

Actual Costs As incurred You must reimburse Blaze Pizza, LLC for costs and expenses incurred if pre-opening training and review is delayed or accelerated by more than 2 days.

Supplier and Product Evaluation Fee

Costs of inspection (estimated to be approximately $100 to
$500)
As incurred The Franchisor may charge a fee if The Franchisor inspect a new product, service or proposed supplier nominated by you.

Legal Costs and Professional Fees

Will vary under circumstances As incurred You will be required to reimburse the franchisor for any legal or accounting fees that The Franchisor incur as a result of any breach or termination of your Franchise Agreement. You must reimburse Blaze Pizza, LLC if The Franchisor are required to incur any expenses in enforcing Blaze Pizza’s rights against you under the Franchise Agreement.

Indemnification

Will vary under circumstances As incurred You must indemnify and reimburse Blaze Pizza, LLC for any expenses or losses that The Franchisor or its representatives incur related in any way to your Blaze Pizza Restaurant or Franchise.

This data was taken from the Blaze Pizza FDD and is included in our comprehensive pre-investment due diligence report for prospective Blaze Pizza franchisees. Access the full report here.

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IFA’s Appeal against Seattle’s $15 Minimum Wage Law Rejected Again

Franchise Lawsuits/Legal News

Seattle. Photo by Howard Ignatius

SEATTLE – The U.S. Ninth Circuit Court of Appeals last week denied the International Franchise Association’s arguments against Seattle, that if granted would have blocked portions of the city’s new $15 an hour minimum wage.

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What is a Franchise Disclosure Document and Why is it Important?

The franchise disclosure document (FDD), formerly referred to as the Uniform Franchise Offering Circular (UFOC), is a detailed report that is updated annually with new information for every registered franchise opportunity. The importance of the franchise disclosure document in franchise transactions should not be understated. It is packed full of useful information on the franchise system, including details on franchisee earnings, agreements, contracts and manuals, financial statements and much more. Needless to say, experienced franchise acquisition consultants commonly regard the FDD as the single most important report for prospective franchisees to review prior to buying a franchise unit or investing in a franchise system.  That’s why we devoted the resources we did to create our comprehensive collection of old and new Franchise Disclosure Document (FDD) reports.

Click here to search Franchise Disclosure Document FDD Reports now!

What Information is in the Franchise Disclosure Document?

The slide show below will provide you with a quick introduction to the franchise disclosure document, what type of information the FDD contains and why it is an important part of the pre-purchase franchise due diligence process.

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Franchises Ineligible for SBA Loans

Attorneys with the Small Business Association (SBA) have put together a list of Issues of Financial Assistance Eligibility that they have identified in various franchise or or franchise-like agreements, which SBA calls Franchise Findings. The Franchise Findings list contains the names of franchises that have requirements in their Franchise Agreements that could cause the business to be ineligible for SBA business loans. The SBA Franchise Findings list is provided for use by Lenders/CDCs to aid in evaluating the financial assistance eligibility of small businesses that operates under a Franchise Agreement or similar type of contract.

List of Franchise Companies that may not qualify for SBA Financial Assistance Loans

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