Credit Reports – Available By Court Order

May 10, 2020
Our team is experienced with offering Court-Ordered Credit Reports FIDUCIARY NEED | DIVORCE PROCEEDINGS | OTHER COURT ORDERS

CARES ACT Modifies Some FCRA Obligations

Apr 06, 2020
As a nation we are all adjusting to a new normal because of the COVID-19 national emergency. The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) was passed by Congress and signed by the President last week. It was enacted to provide various relief measures to help sustain our economy, as 97% of the nation's population is now under "shelter-in-place" orders, except for businesses providing "essential" services. One of the benefits of the CARES Act is that it allows consumers to obtain deferment of debt payments, classified as "accommodations" under this Act, from credit card companies, banks, and other loan providers, as long as some conditions are satisfied during this COVID-19 national emergency. The CARES Act, though, went even further. It modified the Fair Credit Reporting Act (FCRA) – the same law that regulates employee and volunteer screening, tenant and resident screening, franchisee screening, and country club and other membership screening background checks. However, the FCRA is also the consumer lending protection law. In this regard, the CARES Act specifically prevents furnishers of credit information (i.e., creditors, such as banks, credit card compani…

NLRB Releases Final Joint Employer Rule – More Good News for the Franchise Industry

Mar 01, 2020
On February 25, 2020, the National Labor Relations Board (NLRB) released its final joint employer rule that favorably defines joint employer conditions, so that entities such as franchisees and their franchisor will generally not be considered to be joint employers going forward. This NLRB ruling follows the Department of Labor similarly issuing its final joint employer rule in January. The NLRB rule states: "Under this final rule, an entity may be considered a joint employer of a separate employer's employees only if the two share or codetermine the employees' essential terms and conditions of employment, which are exclusively defined as wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction." Further, in its 194-page ruling, the NLRB specifically states that the Board "has generally not held franchisors to be joint employers with their franchisees." These two rulings together truly are fantastic news for the franchise industry. They allow franchisors to protect their brands by detailing specific operational guidelines. For example, specifics can be addressed in the franchise agreement, noting items such as operational procedures, and also det…

It’s Okay to Let the Franchisee Pay

Feb 17, 2020
Every year about three hundred new franchise brands are launched in the United States alone.  The franchisee applicant pays the franchisor a franchise fee, and must also have sufficient liquidity and net worth, in order to be considered for approval of being granted a franchise. However, too often the franchisor pays for the franchisee screening report, when in fact it can be passed through to the franchisee applicant.  In fact, most franchisee applicants will actually appreciate paying for their own thorough franchisee vetting. Really, but why? The typical franchisee applicant is investing a substantial amount of their personal wealth, often approaching $500,000 to $1 million or more.   An astute business person will value a franchisor that implements a rigorous background check program to ensure that individuals with undesirable and/or dangerous criminal histories are not associated with the same brand in which they are investing their own assets.  With viral social media, brands can be destroyed or severely weakened virtually "in an instant." In order to have the franchisee pay for their own franchisee screening, it is necessary to disclose either an Application Fee or a Back…
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