Contact Us

Oregon Office:

Douglas D. Smith

22021 SW Sherwood Boulevard 

PO Box 1034

Sherwood, Oregon 97140-1034

Phone: (503) 840-0000


Utah Offices:

Bradley D. Smith

FranchiseSmith Utah, LLC

5508 West Kensington Circle

Highland, Utah 84003

Phone: (801) 615-1564


Douglas D. Smith

Franchise Smith, LLC

201 Red Pine Drive #4

Alpine, Utah 84004-5618

Phone: (503) 840-0000


Please understand that the

information contained in

this website is provided

for general information. It

may or may not reflect

the most current legal

developments and new 

business practices. It is

not provided in the course

of the attorney-client

relationship and is not

intended to be legal

advice or a substitute

for obtaining legal advice

from an experienced

franchise attorney 

related to your specific

needs and circumstances.

RSS 2.0   Atom


Revenue Recognition of Franchise Fees - New FASB Instructions

November 5, 2018
Today, the FASB (Financial Accounting Standards Board) issued instructions for franchise companies concerning revenue recognition under newly revised Generally Accepted Accounting Practices in the United States ("US GAAP"). These instructions cover the rules for recognition of parts of an initial franchise fee as various goods and services are delivered (i.e., equipment, signs, layout and design, franchisee ...   read more

New FASB/GAAP Accounting Rules Impact Financial Reporting and Condition in 2019

April 19, 2018
On January 1, 2019, franchise companies will be subject to new Financial Accounting Standards Board (“FASB”) rules about how to treat franchise system revenues under Generally Accepted Accounting Principles (“GAAP”). The new FASB rules determine how a franchisor’s audited financial statements handle initial franchise fees, training fees, equipment and inventory sales, royalty fees, ...   read more

2017 New NASAA Franchise Disclosure Document Item 19 Requirements:

October 27, 2017
On May 8, 2017 the North American Securities Administrators Association ("NASAA") adopted a Franchise Commentary with new requirements and restrictions for disclosure of historical and projected financial information in the offer of franchises. Phase-in of this new rule on Financial Performance Representations means most franchisors will have to revise their operational performance information and earnings disclosures ...   read more


August 10, 2017
On June 28, 2017, in Highland, Utah, Brad Smith and Doug Smith hosted a discussion about franchise processes and opportunities in the United States and worldwide as part of "FRANCHISING: PROCESS AND POSSIBILITIES: A Project for Uzbekistan and Kazakhstan" under the auspices of the U.S. Department of State's International Visitor Leadership Program.
Participating from Uzbekistan and Kazakhstan ...   read more

The Small Business Adminstration (SBA) has Significantly Revised its Lending Requirements for Franchising

December 9, 2016
the SBA Lending Requirements for Franchises have officially been revised:
There is now a specific SBA Addendum that must be added to every SBA financed franchise agreement.
Transfer – (a) the franchisor cannot exercise a right of first refusal or purchase option in the case of the transfer of a partial interest in the Franchisee – yes, double e – that right / option may not be exercised ...   read more

New Office in Utah

May 6, 2016
We are pleased to announce that as of May 6, 2016 Douglas D. Smith has been admitted to practice law in the State of Utah. He will continue to practice in Oregon pursuant to the license that he has held since 1979.
 FranchiseSmith LLC has a new satellite office in Utah:
             201 Red Pine Drive, Unit #4
            ...   read more

Returned from Romania

January 1, 2016

Rhonda and Doug successfully completed their mission to Romania. They arrived home just before Christmas. 

Our entire family was together in Oregon the last week of 2015. Doug and Rhonda met four new grandchildren who were added to our family while they were gone. 

Doug reactivated his franchise law practice on January 1, 2016.

   read more

Called to Serve a Mission in Romania

June 4, 2014

We are happy to let you know that Rhonda and Doug Smith have been asked to serve an 18-month mission for the Church of Jesus Christ of Latter-day Saints in Romania and Moldova. They just received this call and the church has asked them to leave quickly – on June 30, 2014. However, given the recent excitement and ongoing developments in that part of the world, we understand the need for help there as soon as possible. ...   read more

Inadvertent Franchise Earnings Representations

December 12, 2012
Recently a new client asked me to review its franchise system website to ascertain whether it contained any information that could be problematic under state and federal franchise and business opportunity laws and regulations. In part here is my response:
I really like the look, feel and attitude expressed on your website. However, the several videos under the "Getting to Know Us" tab must be carefully reviewed ...   read more

Licensing versus Franchising

April 10, 2012
Today, I read an article by a franchise attorney about the differences between "licensing" and "franchising." At first I thought "Oh, no, here we go again." I anticipated the typical "you don't need to franchise because you can just call it a license" scam. However, when I read the article I realized he was giving in simple lay language correct descriptions of state and federal franchise laws and alternatives to structure ...   read more

What we can do - be at our best.

January 13, 2012
Thanks again to Larry Dennis of Turbo Management for this thought for the day:
 "Not long ago I talked with the manager of a local restaurant. Her unit at the Wilsonville Road / I5 interchange has been dramatically affected by construction, off ramp congestion and street closures. She described the impact and some of the creative things she has been doing to overcome the decrease in customer count. I said, "I have ...   read more

For Franchisees - The Important First Step to Investigate a Franchise System

January 3, 2012
Recently on a franchise related internet community site, the question was asked: "What is the most important thing I shouold do when investigating whether to purchase a certain franchise?" 
To me, as a franchisor attorney, the answer is easy - when investigating any franchise system RANDOMLY select and talk to as many existing and former franchisees in the system as possible. My rule of thumb: do so until you find ...   read more

FTC Modifies its Business Opportunity Rule to Protect Consumers

November 22, 2011
 The Federal Trade Commission is the federal government agency that regulates the franchise industry and "business opportunities." About half the states also have their own rules related to franchises and business opportunities. Take a look at our articles related to the differences between a "franchise" and a "business opportunity" and about the interplay of federal and state laws regulating each on our website.
 This ...   read more

Recession, Financing and a recent Oregon Experience

September 5, 2011
Thanks to my good friend Greg Hansen for sending me a July 24, 2011 article from the Eugene Oregon Register-Guard that augments my blogs of August 9 and September 5. Here are some highlights from the article entitled "Making a go of it with a franchise -More Americans are choosing an investment in ownership" by By Saul Hubbard and Brian Davies:
... . [A new franchisee ...   read more

Recent Economic News is Still Not Good for Franchising

September 5, 2011
In my August 9, 2011 entry, I describe why this recession is so different for and difficult on the franchise industry. Well, the news is not getting any better as the following announcements from International Franchise Association newletters show:
On September 2, 2011, the IFA said the following in its newletter:
"IFA research showing increasing pessimism among franchise executives echoes a number of studies ...   read more

Pearls From My Clients - Turbo Management

August 18, 2011
I have a number of clients who produce newsletter and blog articles for their business. Larry Dennis from Turbo Management recently wrote:
"Ray, service manager for a well-established tire and retread company, told Session 9B of the Leadership Development Lab:
 "A few weeks ago, one of my serviceman dismounted 147 tires, and mounted 43 additional tires. I created an 81/2 X 11 poster using my word document ...   read more

Why this Recession is Different for Franchising

August 9, 2011
I have focused my law practice on franchising and its alternatives since 1982. During that time, periodically, our economy has gone through recessions. Some short lived and some more serious. Each recession held one thing in common, I was busy. During good times there was plenty to do, during a recession there was even more.
Why? During a recession some businesses do well while others struggle. Those that do well ...   read more

What's In A Name? - Picking the Right Name Can Make All the Difference

March 29, 2011
Today, a new client asked my advice about how to develop a memorable and protectable name for his exciting new franchise system. I think you will find my response helpful and informative:
The best and strongest and most protectable names for a business or franchise system are made-up, unusual or "coined" words such as Kodak, Exxon, Xerox.
The weakest and least protectable are geographic (NorthWest, New ...   read more

Connect with Franchise Smith on Twitter, Linkedin and Facebook

February 22, 2011
You can now connect with Franchise Smith on Facebook, Linkedin and Twitter!  Whatever your favorite social media tool you use the most, connect with us to get updates directly from our blog to you! 

Stay informed with the latest news from Franchise Smith!

Become a Fan on Facebook

Connect with us on Linkedin

We look forward to hearing from you!   read more