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On January 1, 2023, Assembly Bill (“AB”) 676 went into effect, significantly amending the California Franchise Relations Act and Franchise Investment Law. These provisions will apply to franchise agreements entered into, amended or renewed on or after January 1, 2023. franchise disclosure documents.
As the restaurant industry continues to evolve in 2025, effective legal strategies are more important than ever for operators aiming to grow and scale their businesses properly. From franchise compliance to mergers and acquisitions (M&A) terms, the right legal frameworks can guide a restaurant company to long-term, sustained success.
Some of the biggest restaurant businesses on the planet are franchises. They employ thousands of people and have served billions, and with so many people affected, it's understandable why there are franchise-specific laws and regulations in place. What Does Franchise Compliance Even Mean? Federal Law Compliance.
It’s been five years since you opened your first restaurant. One day someone approaches you about buying the right to open one of your restaurants in a nearby city. What does it really mean to franchise your restaurant? Franchising is a great way to grow a brand using other people’s capital.
An upgraded AI function can now generate incredibly realistic images, including fake restaurant receipts. This new capability opens the door for unscrupulous individuals to try and scam restaurants out of free meals, gift cards, and more. What are some things restaurant operators do to protect their businesses from AI-generated fraud?
For restaurants, however, the PPP caused confusion in terms of who could apply and how the loans would be handled. Are restaurants eligible for PPP loans? In the food service industry, this raises a question as restaurants may, when combined within one company, have more than 500 employees. Businesses may borrow up to 2.5
It’s hard to escape the continuing boom in restaurantfranchises. Quick-serve brands are leading the trend, and not just for restaurants, but for franchises overall. Just as challenging is keeping on top of federally mandated franchise disclosures contained in the Franchise Disclosure Documents (FDD).
From infamous chicken sandwich wars to on-trend plant-based burgers and acai bowls, it’s safe to say that 2019 was a trademark year for restaurants. With all of 2019’s success, restaurant operators are also facing challenges that can be addressed with the help of technology in the New Year. trillion in sales by 2030.
Cities and states across the US are responding to a movement known as “ fair workweek ,” with many enacting new laws to shield restaurant employees’ personal lives and finances from the notoriously unpredictable world of restaurant scheduling. What is “Fair Workweek?”
The current situation Involving lack of travel, dining out, and attending live entertainment, including sporting events, is of course having an adverse impact on hotels, restaurants and entertainment venues. Restaurants of all sizes have also been hit hard. The smaller restaurants may never re-open, depending on capital and expenses.
Legal and other matters referred to in this article are based on 7shifts' interpretation of laws existing at the time and should not be relied on in place of professional legal advice. On July 1, 2020, Chicago, Illinois will join a growing list of United States cities observing fair workweek laws. In New York City, Chipotle faces a $1.5
Before restaurants can record a profit, they need to take several expenses into account—inventory, kitchen equipment, building utilities, and of course, labor. What is Restaurant Labor Cost Percentage? The formula for calculating labor cost percentage is: Restaurant Labor Cost Percentage = (Total Labor Costs) ÷ (Total Sales) x 100%.
While businesses coast to coast reel from the financial and emotional impact of the COVID-19 coronavirus pandemic, few have been affected more adversely than restaurants. Uncertainty in the restaurant industry could endure for months, maybe longer. COVID-19 Legislation and Tax Policy Changes. Paycheck Protection Program (PPP).
For additional resources, click COVID-19 Survival Guide for Restaurants and MRM Restaurant Survival Guide, Second Course and MRM Restaurant Survival Guide, Part Three and What’s Next?: MRM Restaurant Survival Guide Updates.
Navigating the labyrinth of cost accounting in the restaurant industry can feel like trying to solve a Rubik’s Cube in the dark. Key Takeaways Establishing a comprehensive restaurant cost accounting system is crucial for tracking profits, managing cash flow, and ensuring financial health.
This edition of Modern Restaurant Management (MRM) magazine's Research Roundup features Grubhub's State of the Plate 2020 trend report, the fragility of "open," di g ital resilience and brand intimacy. See the latest sales and traffic results here: Sales Improve but Restaurants Should Brace Themselves for Challenges Ahead.
This edition of MRM News Bites features a double dose from US Foods, SpotOn Transact, DoorDash Kitchens, Virtual Restaurant Consulting, Tripleseat and Gather, wagamama, Toast, The Gluten Intolerance Group, Instawork and StaffMate Online, Procurant and Yellofin, Sift, 7shifts, ParTech, Revel Systems and Como, Kabbage, Bluecrew and Cuboh.
to enact a predictive scheduling law on a statewide level. These new regulations create major challenges and potential costs for restaurant, hospitality and retail employers throughout the state, requiring them to fundamentally change how they schedule their workers. 11 Things Operators Need to Manage Oregon’s Fair Work Week Law.
Beware: If you own more than one restaurant which operates under the same name, you may have created an illegal and unintended franchise. We all know what a franchise is when we see one, right? So what exactly is a franchise? First, there is no uniform definition of a franchise. McDonalds, Dunkin Donuts, etc.
When opening a bar or restaurant, one of the first questions folks ask is “Where do get money for the business?” First of all, you need to determine the format and concept of your new restaurant, draw up a business plan, and budget startup costs and continuing costs. Choosing a Location for Your New Restaurant.
Once the restaurant has been set up, and the owner is earning profits, the next step for any successful restaurant business is its expansion. Restaurant owners mainly turn to the franchise route for business expansion because of a lack of time and resources. How To FranchiseRestaurant In Saudi Arabia.
The increasing number of multi-site restaurants and food service companies with centralised production kitchens also increases the importance of traceability. Any restaurant can benefit from solid traceability processes. Today, many multi-property restaurants work from a central production unit or CPU. Virtual brands.
In this edition of MRM News Bites, we feature sobering statistics from Yelp, a ghost kitchen franchise model, franchise explosions expected and falling for for an improved PSL. Permanent Closures Continue to Increase Across Restaurants, Retail and Other Industries. Yelp Sees COVID Effect.
"As more people and more restaurants have come to use our services, Q2 bookings on Uber Eats are up more than 100 percent year on year. "We urge federal policymakers to dive into it to determine how best to devise support for small businesses like restaurants that are clearly on the ropes. ” ServSafe Dining Commitment.
billion will go fast, so establishments in need of help should gather documents quickly Major help for the hospitality industry is finally within sight, even though that assistance will be too late for too many. government will finally start disbursing targeted aid to one of the hardest-hit sectors of the U.S. No firm date has been set.
The loss of volume for the franchise, the forfeiture of jobs for the community, and the closed restaurant locations could have been avoided with a thoughtful succession plan. Despite this, restaurant owners and franchise brands routinely shy away from discussions around exit strategies or succession planning.
This edition of Modern Restaurant Management (MRM) magazine's Research Roundup features an economic report from Yelp, super Super Bowl stats, delivery trends, megatrends, best cities for BBQ and top venues. Restaurant, food, and nightlife businesses were collectively down by 1.3 Fast-food restaurants also took a hit, down 1.5
In this edition of MRM News Bites, we feature links for PPP Forgiveness, new Yelp features and more products and services for restaurant recovery. The EZ application requires fewer calculations and less documentation for eligible borrowers. PPP Forgiveness Links and EZ App.
The internet holds countless stories of inappropriate behavior that female restaurant workers have endured. Women-owned restaurants often have their accomplishments overlooked. Women fill more than half of restaurant positions in the U.S. Make the Restaurant Workplace Better For Women. She promptly quit. Set core values.
Please send questions to Modern Restaurant Management (MRM) magazine Executive Editor Barbara Castiglia at bcastiglia@modernrestaurantmanagement.com. For this month’s piece, we offer some items for consideration that most directly affect operations in the restaurant sector. Build Back Better. percent of family income to 8.5
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