Restaurant Brokers, Robin and Eric Gagnon will be joined by a panel of industry experts as they discuss the legalities of franchising a restaurant on Atlanta’s AM Talk 920 and Atlanta's Biz 1190AM.

The panel will feature Kay Ainsley, Managing Director of MSA Worldwide and Bill Hasty Owner of William D Hasty, Jr P.C. The panel discusses how operators can franchise their company and how lawyers and franchising consultants help operators avoid rookie franchise mistakes.  The panel also discusses how operators can franchise their company domestically and the legal controls that must be in place before expanding a restaurant.

Learn why Kay Ainsley says everyone thinking about franchising should hire a legal consultant and why the beginning stages of a franchise operation is the most important. If you don’t have the right franchise model in the beginning, “Making changes can be difficult going down the road” said Kay Ainsley.  Why is franchising what Bill Hasty calls a “[not your] do it yourself venture? Maybe because all the rules and regulations associated with franchising is something that the average person is unaware of.

What are the common mistakes new franchisors make? Well, number one on Bill Hasty’s list is the skill set to become and franchisor. Listeners learn that just because you are a successful operator, does not mean your will automatically become a successful franchisor.  Bottom line is that you have to consultant with someone first before investing your money into a venture that was doomed from the beginning.

But wait; if you franchise your restaurant, won’t someone steal your secret recipes? Relax; no one can ever steal your recipe if you have what is known as the Franchise Disclosure Document or FDD. This document will guarantee, your recipe will be safe no matter what. And if you still don’t feel comfortable with your franchisees knowing your secret recipe, you can always have the recipe premade and just ship it to the franchisees.  So, don’t worry grandma’s famous pumpkin pie recipe will be safe.

Let’s talk little bit about the legal aspects of franchising. First, who in the world oversees franchising in the Unites States? Well, it’s the Federal Trade Commission or the FTC. Now, the FTC does not oversee every single thing in the franchise world such as the FDD. However, some states do require you to register the FDD with the FTC so that it’s applicable to state law. What is the franchise manual you ask? Well, it’s simply a manual that contains the day to day operations for franchises by outlining policies and procedures.  But overall, the franchise manual is there to provide consistency so every franchise is operating the same no matter where it’s located.  

In the show’s last segment, “Restaurant Reality”, Restaurant Brokers Robin and Eric Gagnon discuss the hard truths about franchising. Once again, the duo reiterates the importance of education. A lot of aspiring franchisors think franchising is a great way to collect “mailbox money”, no work, and all pay. The husband and wife team confront these franchise assumptions head-on without sugar coating. Will a restaurant that is successful in a small town in Alabama be as successful in NYC? What is your motivation behind franchising? Do you have passion for your brand? Or are you most concerned with the financial gain? Learn these topics and more by tuning into the restaurant brokers.

Guests:

Kay Ainsley,  Managing Director of MSA Worldwide

Kay Ainsley is the Managing Director of MSA Worldwide, which provides domestic and international franchise consulting services to clients within the retail, restaurant, business to business and service industries.

Kay consults with companies on utilizing franchising, both in the U.S. and internationally to achieve their goals. She assists companies in setting objectives, developing strategy, and creating and executing plans for establishing or expanding a franchise program, brand building, franchise relationships and the restructuring or exiting of existing programs. She also provides expert witness and litigation support services. Her clients range from companies in the Fortune 50 to very small start-ups.

Kay is active in the franchise industry. She has served as Chair of the Supplier Forum of the International Franchise Association (IFA), was a member of the Executive Committee and IFA’s Board of Directors. She is also on the Board of Professional Athletes Franchise Initiative (PAFI).

Kay is a frequent speaker for the IFA and other professional organizations in the United States and internationally. She has written numerous articles on franchising and is often quoted in the press regarding marketing and franchising issues.

Bill Hasty,  Owner of William D Hasty, Jr P.C.

With Over 40 years of experience as a business law attorney, 50 percent of Bill’s practice comprises of franchise law representing franchisors in the formation and operation of their franchise systems. Bill’s balance of practice is concentrated on business, corporation and transaction law.  Recognized by the Birmingham Business Journal as “Best of the Bar” for Franchise Law, Bill was also named by Birmingham Magazine as the “Top Attorney” for franchise law.