Ethical Franchising Uncovered: Legal Insights with Ron Gardner

Ron Gardner’s journey from spinning records to spinning the wheels of justice is nothing short of extraordinary. As a former disc jockey turned trial lawyer, Ron has made a significant impact on the franchising world by protecting franchisees from fraud and unfair practices. Guided by his blue-collar upbringing, his mission is to support individuals striving to improve their circumstances, often against powerful franchisors.

In this episode of Smart Franchising Podcast, Ron shares:

• How franchisors and franchisees can build win-win relationships.
• The transition from individual franchisee representation to franchise associations.
• Steve’s role as outside general counsel for some of the largest franchise associations, including KFC, Wendy’s, and Subway.
• The role of franchise advisory councils and effective communication channels.
• Why including franchisees in decision-making can prevent 80% of system issue lawsuits.
• Advice about fair contract negotiations, non-compete clauses, and technology fees.

On Ron’s Motivation to Support Franchisees

Ron: “Growing up in a blue-collar family, I saw firsthand the struggles and aspirations of hardworking individuals. That fueled my desire to protect those who might not have the means to stand against powerful entities alone. They're not just clients; they’re people trying to make a better life for themselves and their families.”

On the Ripple Effects of Business Failure

Ron: “I’ve witnessed the devastating consequences of a failing franchise—financial ruin, strained personal relationships. It’s like a ripple effect, impacting every facet of a franchisee's life. It's why I emphasize the importance of fair agreements and thoughtful decision-making.”

On Franchisor’s Ethical Responsibility

Ron: “Ethical franchising is not just a buzzword; it’s a necessity. California's regulation 919 is a step in the right direction, and I believe other states will follow. Franchisors have a duty to foster trust and fairness. Only then can we truly achieve a win-win situation.”