Franchise Law, With Expert Attorney Robert Zarco

Expert attorney Robert Zarco, also known as the “Franchise King”, joined Haute Lawyer for a live webinar about Franchise Law and how it and those who open franchises have been affected in the past months from the COVID-19 pandemic.

Zarco, Founder of Zarco, Einhorn, Salkowski, & Brito, P.A., was hosted by Haute Living’s April Donelson for the hour-long dialogue that touched upon all aspects of the franchise model. Watch the webinar below.

Highlight quotes from Robert Zarco:

The indoor dining-only mandates have been crippling to a lot of businesses. A lot of owners have evolved their businesses to increase take-out services, the menus; some that didn’t do delivery before are now doing so. There are savings in labor when you don’t have to tend to clients in the restaurant, maintenance, and more. A lot of businesses that are surviving are maintaining their level of quality and service. Customers are being impacted by that continued level of service.

“The language in a [franchise] contract is even more important now; it is crucial. You have to evaluate your relationship with the franchise. How did they treat you during the COVID scenario? What was their approach? We believe that because of the unfortunate demise of a lot of businesses, there will be lots of opportunities for open space available to de developed and utilized. You have to be careful as to why that location failed. Have a legal advisor on hand before you launch a business. Those that do their homework have a much higher chance of success.”

“Normally, for lawyers, hearings and depositions are in-person. Now that they are on Zoom, I handle them from my desk, saving time that I would have spent traveling.”

“Analyze the business model to see if you can live with the return on investment. You have to factor other elements, like exclusive territory. The franchisor could place a competing unit even in proximity to you, and not be responsible on how that impacts you.”

“Focus on how long a commitment is, if there is an exit clause in case performance metrics are not met due to a force majeure. Personal guarantees should be avoided as much as possible. If a lot of people decide they won’t sign them, landlords may be faced with the choice to trust that the business will be successful without it.”

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Robert Zarco - webinar June 2020
Robert Zarco