Here’s the scenario: one of your company’s franchisees is served with a subpoena issued by a regulatory authority in their home state. The subpoena, which is very broadly written, requires the franchisee to provide its business records to the state agency. To comply, your franchisee will have to produce confidential information that is owned by you, the franchisor (for example, a portion of your Operations Manual). How should you react?
First, read your franchise agreement. The agreement should have well-defined terms relating to the company’s ownership of information that has been deemed “confidential” and your franchisee’s right to use that information. Most importantly, the agreement should clearly state that your franchisee has no right to disclose confidential information to anyone except for its employees and agents, and require your franchisee to use reasonable efforts to protect the privacy and secrecy of that information.
Continue reading "Franchisors: Protect Those Trade Secrets" »
This has to be the strangest marketing idea I have ever seen: Intercontinental Hotels Group announced this week that, at the end of this month, it will be test marketing "human bed warmers" in its Holiday Inn-branded hotels in the United Kingdom. Apparently, employees of the hotel dressed in special all-in-one sleeper suits will lie in your bed for five minutes to warm it up for you before you turn in for the night. The idea is that hotel guests will be able to fall asleep faster, and sleep better, if the bed is warmed up first.
While it's certain to create buzz, I seriously doubt that this gimmick will get much of a "warm" reception by customers. To the people at Intercontinental: have you ever heard of electric blankets?
The next meeting of the Nevada Franchise Business Network is scheduled to occur on Wednesday, January 20, 2010 at Cili restaurant in Bali Hai Country Club, 5160 Las Vegas Boulevard South, Las Vegas, NV 89119. The topic of the meeting is "Franchise Financing: The Credit Crisis," and will feature a program by Ed Brown from the Las Vegas office of the U.S. Small Business Administration (SBA). Mr. Brown will speak about lending and SBA's current programs for borrowers. Following Mr. Brown's presentation, the meeting will become a roundtable discussion with Mr. Brown and representatives of lenders and SBA document packaging firms.
Registration will begin at 7:45, with the program scheduled to start at 8:15. Light breakfast will be served. The meeting is open to all members of the franchise community, including local franchisors, franchisees, and suppliers. There is no cost to attend, but please RSVP in advance to Mary Rodell at mrodell@armstrongteasdale.com.