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America’s Swimming Pool Co. Multi-Unit Franchisee Sets First-Year Sales Record in Tennessee

How HomeTeam Inspection Service’s Team-Based Model Outperforms Traditional Home Inspection Franchises

Layne’s Chicken Fingers Signs 24 Franchise Agreements, Reaches 50 Units Open in First Half of 2026

Right at Home Targets Deerfield, Wisconsin for Growth as Momentum Builds in Surrounding Markets

How Insurance Professionals are Thriving in Sales Roles at ServiceMaster Restore 

Lubbock Avalanche-Journal: Urban Bird Hot Chicken Plans Expansion to Lubbock

Franchise Opportunity Deep Dive: Newk’s Eatery is a fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.

Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

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Franchise Legal Player:&nbsp;<a href="https://www.linkedin.com/in/frank-robinson-2646422b/?originalSubdomain=ca">Frank Robinson</a> Firm:&nbsp;<a href="https://cassels.com/">Cassels Brock &amp; Blackwell LLP</a><a href="https://chambers.com/lawyer/frank-robinson-canada-20:1546303">Frank Robinson</a> has built a reputation as a trusted advisor to franchise brands navigating growth, compliance and long-term risk. With experience advising emerging, scaling and mature franchisors across restaurants, hotels, consumer products, automotive, home care, fitness, home services and other consumer-facing industries, Robinson brings a practical, business-minded approach to franchise law. Their work focuses on helping brands scale responsibly while protecting both the franchisor and franchisee experience.1851 Franchise connected with Robinson to discuss what franchisors often overlook, where legal risk hides during expansion, and the lessons that continue to shape his advisory philosophy.1851 Franchise: What originally drew you to franchise law, and what has kept you engaged in the space over time?Frank Robinson:&nbsp;The practice of franchise law is dynamic, the clients we serve are talented, creative and diverse, and the franchising sector continues to evolve and create new opportunities for all stakeholders. As a franchise lawyer, our clients require advice and support in a broad range of areas, including franchise compliance, intellectual property, M&amp;A, real estate, litigation and so on. This keeps the practice varied, interesting and never dull. Our clients span an immense spectrum of industries, from restaurants and hotels to consumer products, automotive, home care, fitness, home services and more. We benefit from being able to participate in so many different businesses. More recently, increased interest in the franchise model from private equity, public markets and other capital partners has fostered areas of growth and opportunity that pull our clients — and us with them — into new and exciting places. It has never been a better time to be a franchise lawyer.1851: As franchising continues to evolve, what legal issue do you see brands most often underestimating today?Robinson:&nbsp;Whether it has to do with the evolution of franchising, or not, an often-overlooked area — that can create downstream legal risks — is the tolerance of deviations from quality standards, often small to start, that erode the integrity of the system and relationship dynamics over time. Many new franchisors regret or resist having to “police” their franchisees, but a failure to enforce a healthy degree of respect for franchise protocols and contractual compliance can transform pesky nuisances into a widespread undermining of the system. Oversight, communication, mutual respect — and the occasional hard conversation — go a very long way.1851: In your experience, where do emerging franchisors tend to get tripped up from a compliance or documentation standpoint?Robinson: Do it once. Do it right. This is what should guide any emerging and responsible franchisor when considering documentary compliance. As a franchisor, your primary assets are the revenue-generating franchises that follow the model and receive value for their adherence to standards. While much of this is sustained by the quality of the business and relationship, it is rooted in the franchise documents, especially the franchise agreement. Mistakes in the documents are multiplied by the number of franchises in the system and can compound over time. Reversing course once agreements are signed is challenging. Franchise systems should invest in quality documents from the start, and know how to use them.1851: What distinguishes your approach or philosophy when working with franchise clients?Robinson:&nbsp;Never losing sight of the client’s goals, whatever they are, however they evolve. Most clients desire growth and sustainability of the franchise system and the franchisees who make it up. Our philosophy is to fully align with clients on that path. In many ways, we see ourselves as a part of their franchise development teams, facilitating the sale and support of their networks. In all cases, our approach is founded on a deep and intimate knowledge of the business of franchising, understanding the needs and goals of our clients, offering practical, responsive and actionable advice, and sharing in and taking responsibility for the outcomes of our clients, whether celebratory or disappointing.1851: Looking back, what lesson from your legal career has had the greatest impact on how you advise clients today?Robinson:&nbsp;Working in a law firm, most problems are answered with a legal response. But, our clients operate in a dynamic and integrated environment in which the legal implications to any problem are one of a multitude to be considered when choosing a way forward. The effectiveness of a lawyer is increased dramatically when he or she can develop the sense and confidence to understand the place and limitations of the law in the context of a complex business problem — and then offer solutions that work in real time.Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com/">www.1851growthclub.com</a> and start your journey.

Frank Robinson — Cassels Brock & Blackwell LLP

1851 Franchise’s annual roundup of the Top Franchise Lawyers You Should Know is back for 2026, spotlighting the legal minds helping shape the future of franchising. 

2026 Top Franchise Lawyers You Should Know: Frank Robinson — Cassels Brock & Blackwell LLP

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Franchise development has a measurement problem. Brands obsess over lead volume, cost per lead, and funnel conversion rates. Dashboards look clean. Campaigns look optimized. Reports show progress.But behind those metrics is a harder truth: most franchisors are optimizing a system that doesn’t reflect how buyers actually behave.We recently analyzed a dataset of real franchisees, their discovery paths, decision timelines, fears, and what ultimately pushed them to say yes. The findings are not subtle. They challenge some of the most common assumptions in franchise marketing.In a recent episode of <a href="https://www.youtube.com/watch?v=YE1fn5hlaSE">Coffee &amp; Analytics</a>, 1851 Franchise publisher <a href="https://www.linkedin.com/in/powills/">Nick Powills</a> shared 20 lessons every franchisor should internalize if they want to attract better operators and grow sustainably.<h2>1. Discovery Is Often Accidental</h2>Franchisees rarely follow a linear path into a brand. Many discover opportunities through travel, as customers, or through casual exposure. This means your brand is being evaluated long before a prospect ever fills out a form.Takeaway:&nbsp;Your growth strategy should extend beyond lead generation. Discovery is happening whether you design for it or not.<h2>2. The Physical Experience Still Wins</h2>A consistent pattern emerged: prospects visited locations, tried the product, and evaluated the experience in person. That moment often carried more weight than anything digital.Takeaway:&nbsp;Your units are your most important marketing asset. If they don’t convert customers into believers, nothing else will.<h2>3. Brokers Still Matter</h2>Despite the rise of digital channels, brokers remain a meaningful part of the early funnel for many buyers.Takeaway: Ignoring broker relationships is not a strategy. It is a blind spot.<h2>4. Buyers Consider a Small Set of Brands</h2>Most franchisees evaluated between five and ten concepts, not dozens.Takeaway: You are not competing in a broad market. You are competing in a tight, high-stakes consideration set.<h2>5. Websites Validate, They Don’t Convert</h2>Not one franchisee cited a website as the reason they chose a brand.Takeaway: Your site’s role is credibility, not persuasion. If you expect it to close deals, you’re asking it to do the wrong job.<h2>6. Financial Clarity Is the Biggest Gap</h2>Franchisees repeatedly asked for clearer expectations around investment, returns, and what is actually included.Takeaway: The issue is not the absence of data. It is the absence of storytelling around the data. If your Item 19 exists without context, it creates hesitation instead of confidence.<h2>7. Timelines Are Consistently Underestimated</h2>Many buyers entered the process without a clear understanding of how long it would take to open or reach profitability.Takeaway:&nbsp;Overpromising speed or underexplaining process creates friction later. Transparency upfront builds trust.<h2>8. “Support” Is Too Vague</h2>Franchisees expect strong support, but often describe it as unclear or inconsistent.Takeaway:&nbsp;If you cannot define support in concrete terms, your buyers will define it for you, and usually not in your favor.<h2>9. Lifestyle Matters as Much as ROI</h2>Freedom, flexibility, and building something personal in their community were common motivators.Takeaway:&nbsp;Buyers are not spreadsheets. They are people making identity-driven decisions.<h2>10. Fear Is Real and Predictable</h2>Financial risk, wiring capital, and uncertainty surfaced repeatedly.Takeaway:&nbsp;Every deal faces the same three barriers: funds, fads, and fear. The brands that win address all three directly.<h2>11. Validation Drives Confidence</h2>Conversations with existing franchisees were among the most influential parts of the process.Takeaway:&nbsp;Your operators are your most credible sales force. Invest in them accordingly.<h2>12. There Is No Standard Timeline</h2>Some buyers inquired within a week of discovery. Others took nearly a year.Takeaway:&nbsp;A rigid funnel ignores reality. You need systems that capture urgency and nurture patience.<h2>13. High-Intent Buyers Move Fast</h2>When the right buyer meets the right brand, decisions accelerate quickly.Takeaway:&nbsp;Your process should not slow down serious operators.<h2>14. Slow Buyers Need Long-Term Engagement</h2>Many prospects require months of exposure and education.Takeaway:&nbsp;Franchise development is not just acquisition. It is sustained relationship building.<h2>15. Consumer Brand Strength Matters</h2>Many buyers were already customers or fans of the concept.Takeaway:&nbsp;Strong consumer brands create built-in franchise demand. Weak ones rely entirely on marketing.<h2>16. Media Is Not a Primary Research Tool</h2>Buyers relied more on search, lists, and peer input than traditional media coverage.Takeaway:&nbsp;Awareness does not equal influence. Trust is built elsewhere.<h2>17. Buyers Want Honesty, Not Perfection</h2>Franchisees consistently indicated a desire for clearer, more realistic expectations.Takeaway:&nbsp;The brands that stand out are the ones willing to say what is hard, not just what is attractive.<h2>18. Not All Buyers Are the Same</h2>Experienced operators evaluate differently than first-time franchisees.Takeaway:&nbsp;One message cannot serve both audiences. Your strategy must segment accordingly.<h2>19. Decisions Are Personal</h2>Life stage, career transitions, and personal goals often triggered action.Takeaway:&nbsp;The final decision is rarely made on logic alone. It is made when the opportunity aligns with a moment.<h2>20. Marketing Channels Rarely Get Credit</h2>Not a single franchisee pointed to ads or campaigns as the reason they chose a brand.Takeaway:&nbsp;This does not mean marketing is irrelevant. It means its role is misunderstood.<h2>The Bigger Problem</h2>Franchise systems are built to optimize measurable inputs. Leads, clicks, conversions.Buyers operate on something entirely different: experience, trust, validation, and timing.When those two systems are misaligned, performance suffers. Not because the marketing is ineffective, but because it is aimed at the wrong target.<h2>What Needs to Change</h2>Franchisors who want to grow should rethink their approach in four ways:<ul><li>Design discovery, not just capture it</li><li>Turn locations into conversion engines</li><li>Build structured validation into the process</li><li>Communicate financial reality with clarity and confidence &nbsp;</li></ul>Growth is not about increasing activity. It is about aligning strategy with behavior.The brands that win the next decade of franchise development will not be the ones with the most leads. They will be the ones that understand how decisions are actually made and build systems around that truth.Because if your strategy does not match reality, it does not matter how well you execute it.The truth is, all of the above can be overwhelming. In fact, when assessing brands, we deliver a playbook that reaches 100 pages. Franchisors look at it with blank stares and say, “Now what?” Millions of dollars takes millions of hours (or a lot of work). But, over the course of two years, if diligent and organized, a brand can leverage the above learnings to turn up the momentum.Watch the full episode <a href="https://www.youtube.com/watch?v=YE1fn5hlaSE">here</a>.&nbsp;Growing and selling franchises is difficult. Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and see what we can do for you.

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1851 Franchise publisher Nick Powills presents 20 lessons every franchisor should know to attract better operators, pulled from a dataset of real franchisees and what ultimately made them say yes.

20 Lessons on Franchisee Behavior that will Change Your Marketing Strategy

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Franchise Legal Player:&nbsp;<a href="https://www.linkedin.com/in/lanefisher/">Lane Fisher</a> Firm:&nbsp;<a href="https://fisherzucker.com/">FisherZucker</a><a href="https://fisherzucker.com/our-practice/our-attorneys/lane-fisher/">Lane Fisher</a> has built a reputation as a trusted advisor to franchise brands navigating growth, compliance and long-term risk. With experience advising early-stage and growth-oriented franchisors across multiple franchise-driven industries including health and beauty, home services, fitness, food and senior care, Fisher brings a practical, business-minded approach to franchise law. His work focuses on helping brands scale responsibly while protecting both the franchisor and franchisee experience.1851 Franchise connected with Fisher to discuss what franchisors often overlook, where legal risk hides during expansion, and the lessons that continue to shape their advisory philosophy.1851 Franchise: What originally drew you to franchise law, and what has kept you engaged over time?Lane Fisher:&nbsp;Franchise law is inherently multidimensional; it sits at the intersection of licensing, trademarks, corporate work, regulatory compliance and dispute resolution. That’s what drew me in initially, but what’s kept me here is the people and the growth curve. Franchising attracts entrepreneurial founders and strong operators, often in family-run businesses, and I enjoy helping them scale in a disciplined way. And because franchising cuts across so many industries — health and beauty, home services, fitness, food and senior care, just to name a small sample — you’re always learning. If your client’s brand grows, your work grows with it, and you can be part of that story from launch through an exit.1851: As franchising evolves, what legal issue do you see brands most often underestimating today?Fisher:&nbsp;If I had to pick only one, I’d say the impact of AI, and the jury’s still out on how the issue develops.Brands are racing to use AI in marketing, franchise development, screening, pricing, scheduling, performance benchmarking, etc. But a lot of franchise documents were written pre-AI and don’t clearly address who owns the data, who can aggregate it and how it can be used or monetized.There’s also a risk layer people miss: AI tools can create real-world expectations. If prospects rely on AI-generated performance projections or comparisons, you can end up with disclosure and misrepresentation issues, including “implied” financial performance claims.1851: Where do emerging franchisors tend to get tripped up from a compliance or documentation standpoint?Fisher:&nbsp;The biggest mistake is treating the FDD like a marketing brochure instead of a regulated disclosure document. Early-stage brands sometimes plug in estimates for initial investment without real calculations and then don’t update those numbers as actual experience comes in. They also underestimate training, especially around what salespeople can and can’t say and how to handle financial performance representations. If you’re offering Item 19, you need clean data, clear assumptions and documentation behind it.1851: How should franchisors think about risk management as they scale into new markets or add new growth strategies?Fisher:&nbsp;Prioritize quality over quantity. The fastest and easiest way to create long-term risk is awarding franchises to undercapitalized or mismatched operators. Strong franchisee selection and validation solve a lot of problems before they start.1851: What distinguishes your approach or philosophy when working with franchise clients?Fisher:&nbsp;I’m not interested in being an “FDD factory.” A franchise system should reflect a real, replicable business, so we’re candid with clients about readiness, and sometimes that means telling someone to wait. We also spend real time understanding the underlying unit economics. If a client is making an Item 19 disclosure, our job is to help them normalize the data, define the assumptions clearly and communicate it in a way that’s accurate and useful.More broadly, we coach clients to grow smart. Initially, that might mean selling smaller deals to better operators, disciplined expansion and, of course, documentation that matches how the business actually runs.1851: Looking back, what lesson has had the greatest impact on how you advise clients today?Fisher:&nbsp;Two things: (1) franchising isn’t for everyone and (2) preventable problems are expensive.The best systems respect the reality of independent business owners and are designed to motivate and support them, not just control them. And when disputes happen, the quality of the documents and the advice you got early on really matters. So we really counsel clients on disciplined growth: resist the temptation to “sell the most” and instead award franchises to better-capitalized, more capable operators. A little restraint upfront saves a lot of pain later.Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com/">www.1851growthclub.com</a> and start your journey.

2026 Top Franchise Lawyers You Should Know: Lane Fisher — FisherZucker

1851 Franchise’s annual roundup of the Top Franchise Lawyers You Should Know is back for 2026, spotlighting the legal minds helping shape the future of franchising.

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Franchise Legal Player:&nbsp;<a href="https://www.linkedin.com/in/leslie-curran-28b877b/">Leslie Curran</a> Firm:&nbsp;<a href="https://plavekoch.com/">Plave Koch PLC</a><a href="https://plavekoch.com/attorney/curran-leslie-d/">Leslie Curran</a> has built a reputation as a trusted advisor to franchise brands navigating growth, compliance, and long-term risk. With experience advising emerging and growing franchisors across a wide range of consumer-facing and service-based brands, Curran brings a practical, business-minded approach to franchise law. Her work focuses on helping brands scale responsibly while protecting both the franchisor and franchisee experience.1851 Franchise connected with Curran to discuss what franchisors often overlook, where legal risk hides during expansion, and the lessons that continue to shape their advisory philosophy.1851: What originally drew you to franchise law, and what has kept you engaged in the space over time?Curran: I found my way into the franchise practice by accident. At a large D.C. law firm, my office was with the lawyers in that practice group, but I didn’t start out working with them. I got to know the lawyers who sat near me, and they were great people, as well as talented lawyers. The practice was very interesting. They were working with brands I knew, and they were helping those brands grow and expand into new markets.And 25-plus years later, I am still working with franchisors and other brand owners to achieve those same goals of growth and expansion, alongside building great legal and business systems to support that growth. I have stayed engaged because of the people who have crossed my path along the way — the people I work with at Plave Koch, the clients who have trusted me to be part of their teams, suppliers I have built relationships with and, yes, even many franchisor-attorney competitors and franchisee attorneys I have had the pleasure of collaborating with over the years in a variety of contexts. For me, this practice and what we do is about building great relationships all around and helping build up an industry that knows no limits in terms of growth with integrity.1851: As franchising continues to evolve, what legal issue do you see brands most often underestimating today?Curran:&nbsp;Franchise sales have gotten tighter and tighter from an absolute numbers perspective. Each year, we see more brands enter the market that want to sell franchises. However, there does not seem to be a corresponding increase in the number of prospective franchisees who want to buy franchised businesses. In a competitive franchise sales environment, in addition to traditional in-house franchise sales teams, we see a variety of outside franchise sales organizations and other third parties pushing to help franchisors close deals.&nbsp;The legal challenges presented by this intersection include ensuring disclosure documents are not only legally compliant but, where possible, also provide information that can assist with the franchise sales process. It also includes ensuring all franchise sales groups are following legal requirements, including possible upcoming broker regulation, and indemnifying the franchisor for any issues arising from sellers’ actions. It also means ensuring the brand is actually ready, from a legal and business standpoint, to onboard prospects. Brands should be aware of the legal and business issues that surround the various players in the franchise sales process and carefully review the agreements with all third-party sellers.1851: In your experience, where do emerging franchisors tend to get tripped up from a compliance or documentation standpoint?Curran: They fail to do due diligence on the legal, financial, business, franchise sales and other advisors they bring on board to help them get started. Each aspect of the startup is important, and mistakes can be very costly for an emerging franchisor. The franchisor team should take time to vet and interview each service provider and get comfortable with the people you will be working with. It’s an expensive endeavor and it’s not quick, so you’d better like those folks. Also, reach out to other franchisors and service providers for advice and recommendations.For the legal documents, franchise agreements often have a term of 5 to 10 years, so documentation that is poorly drafted is going to stick with the brand for a bit.1851: How should franchisors be thinking about risk management as they scale into new markets or add new unit growth strategies?Curran: First, ensure that the brand is able to enter the market from a franchise sales and disclosure law standpoint, either by use of registration or exemption or exclusion. From the business side, some considerations are: Does the franchisor have the operational systems in place to support the new markets or growth strategy? Has the franchisor assessed the financial viability of the new market or the growth strategy? Does the franchisor know what possible brand changes may be necessary for the franchisee to succeed in the new market? Have systems standards, including supply chain issues, been reviewed and updated as necessary?The risk of failure in a new market, especially for an emerging brand, is very significant. Failure in one growth market beyond a brand’s core current market can make it very difficult to expand further in later efforts. In addition, a lack of planning can lead to increased complaints from franchisees who sign up and assert that the franchisor’s foresight and support may be less than anticipated. Those failures and complaints can divert resources and are likely to make additional growth plans take a back seat.1851: What distinguishes your approach or philosophy when working with franchise clients?&nbsp;Curran: Hospitality is important to me. By that, I mean focusing on what is important to each client. I strive to meet clients where they are in terms of knowledge and expertise. No two clients are equal in that sense. While every client is different, at the simplest level, every client wants to be heard and helped when they need you.It sounds simple, but we must listen first to what the client is trying to achieve and only then formulate a reply with all of the options, along with the risks. Never assume you know better than your clients or dismiss their concerns. The advice needs to be relevant, practical and actionable.1851: Looking back, what lesson from your legal career has had the greatest impact on how you advise clients today?&nbsp;Curran: It’s a lesson that sounds simple: Smart lawyers keep clients by being useful. Figure out how to be useful. That will impress your clients and more will follow.Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com/">www.1851growthclub.com</a> and start your journey.

2026 Top Franchise Lawyers You Should Know: Leslie Curran — Plave Koch PLC

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As founders transition into franchisors, few areas carry more risk than earnings claims and advertising. It’s also one of the fastest ways to derail a franchise system before it even gets off the ground.The challenge is clear: prospective franchisees want to&nbsp;<a href="https://1851franchise.com/how-to-start-the-process-of-buying-a-franchise-a-comprehensive-guide-2723007">understand the financial potential of the business</a>, but franchisors must operate within strict legal boundaries about what they can and cannot say.<h2>Understand What You Can Legally Say</h2>In franchising, financial representations are regulated under the&nbsp;<a href="https://1851franchise.com/what-financial-performance-data-can-legally-disclose-a-guide-2731310">FTC Franchise Rule</a>. For example, the only place a franchisor can formally present financial performance data is within Item 19 of the&nbsp;<a href="https://1851franchise.com/how-to-buy-a-franchise-what-is-an-fdd-2724901">Franchise Disclosure Document (FDD).</a>That rule shapes everything.“One of the most important sections of the FDD is Item 19. This is where a franchisor may choose to disclose financial information about existing franchisees,” said&nbsp;<a href="https://www.linkedin.com/in/katy-branstetter-richardson-762684b7/">Katy Richardson</a>, founder of&nbsp;<a href="https://neighborhoodbarre.com/franchise/">NEIGHBORHOOD barre</a>. “Anyone involved in the franchise sales process can only discuss financial performance to the extent it is disclosed within that section of the FDD. For that reason, franchisors must be extremely careful not to make financial representations outside of what is formally disclosed in Item 19.”<h2>The Role of Validation</h2>While franchisors are limited in what they can say, prospective franchisees are not limited in what they can learn.&nbsp;<a href="https://1851franchise.com/how-to-buy-a-franchise-what-is-an-fdd-2724901">Every FDD includes a list of current and former franchisees</a>, and candidates are encouraged to reach out directly to get real-world insight.“Franchisee validation is often one of the most valuable parts of the due diligence process,” Richardson said. “It gives candidates the opportunity to hear firsthand experiences from operators within the system.”Rather than trying to “sell” performance through marketing, strong systems allow their existing franchisees and documented data to tell the story.<h2>The Biggest Legal Mistake: Not Hiring the Right Counsel</h2>If there is one mistake that consistently creates risk for emerging franchisors, it’s failing to work with&nbsp;<a href="https://1851franchise.com/top-franchise-legal-players-2025-franchise-lawyers-2730250">experienced franchise counsel</a>. “Strong franchise counsel is not just drafting documents,” Richardson said. “They are helping franchisors build a compliant, transparent and scalable foundation for long-term growth.”Franchise law is highly specialized, and while the rules may appear straightforward, the application is certainly not.“Inexperienced counsel often misses the nuances and operational realities unique to franchising,” Richardson said. “One common area of confusion is the Advertising Fund, specifically, which expenses can appropriately be allocated to that fund versus corporate overhead or brand operations.”<h2>Common Pitfalls in Earnings Claims</h2>Beyond general compliance, several specific mistakes recur across franchise systems.The first is incomplete or misleading cost disclosures. “Failing to fully disclose the actual costs franchisees incur to open a business” is one of the most common issues Richardson sees.Underestimating startup costs may make an opportunity appear more attractive upfront, but it creates long-term problems when franchisees encounter unexpected expenses.The second is improperly structuring Item 19 data. “There are many ways to structure an Item 19,” Richardson said. “The strategy behind our disclosures varies by brand.”At NEIGHBORHOOD barre, for example, the focus is not just on revenue, but on profitability.&nbsp;“We believe it’s important to highlight the metric that matters most to prospective franchisees: profitability,” Richardson said. “Higher AUVs do not necessarily translate to stronger margins or healthier businesses. With NEIGHBORHOOD barre, we intentionally disclose key studio operating expenses to provide a clearer picture of unit economics and overall profitability.”The third mistake is failing to account for ongoing fees and flexibility. “Failing to account for all ongoing fees, or the franchisor’s right to modify those fees within Item 6” can create confusion and potential disputes down the line, Richardson says.<h2>Advertising Pitfalls: Where Brands Get Tripped Up</h2>Earnings claims are not limited to formal documents. They can also appear, intentionally or unintentionally,&nbsp;<a href="https://1851franchise.com/franchisor-marketing-materials-guide-2730579">in marketing materials</a>, such as website copy, sales brochures, discovery day presentations, social media posts and conversations with candidates.It’s easy to forget that almost any remark about a franchisee’s potential income counts as a legal earnings claim, including casual comments like “our top locations bring in X.”That is why navigating the space where marketing meets legal rules is always a bit of a tightrope walk. The most successful franchisors don’t leave things to chance. They stick to the data, keep every message in sync with their FDD, and lean heavily on expert counsel. Ultimately, they let their numbers and their actual franchisees do the talking.In short, they focus less on selling and more on proving.Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and see what we can do for you. &nbsp;

From Founder to Franchisor Legal Pitfalls

New franchisors face major legal risks when giving prospective franchisees an idea of how much they can make, which is why strict compliance with Item 19 of the FDD is essential.

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