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Article Highlights Ways to Increase Price Paid for Franchise Systems

Franchisors interested in selling a franchise system—whether in the near future or longer term—should take steps now to maximize its value. In the April 2013 issue of Franchising World magazine, Gray Plant Mooty attorneys Gaylen Knack, Sandy Bodeau, and John Brower highlighted key legal issues for franchisors to consider in preparing a franchise system for a sale. They examined proactive steps the selling franchisor can take that can improve the purchase price paid for the system. These include, among other actions, ensuring the franchise agreements give the franchisor flexibility in responding to dynamic changes in the marketplace, conducting an audit of key intellectual property, and establishing a release program as a defense against future claims. Readers can find the article, Selling the Franchise System: Laying the Legal Groundwork to Optimize Value, at http://www.franchise.org/IFA_NEWS/Selling_the_Franchise_System__Laying_the_Legal_Groundwork_to_Optimize_Value/. Those who wish to learn more can attend the Capital Roundtable on Franchising M&A, which Gray Plant Mooty will sponsor, in New York City on November 14, 2013.

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The information contained in this post is provided to alert you to legal developments and should not be considered legal advice. It is not intended to and does not create an attorney-client relationship. Specific questions about how this information affects your particular situation should be addressed to one of the individuals listed. No representations or warranties are made with respect to this information, including, without limitation, as to its completeness, timeliness, or accuracy, and Lathrop GPM shall not be liable for any decision made in connection with the information. The choice of a lawyer is an important decision and should not be based solely on advertisements.

About this Publication

The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP. 

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