Author: Margaret Breen

Those mandatory 18% tips on checks for large dining parties will get more expensive for restaurateurs starting January 1, 2014.

The oldest franchisor in the country recently took a hit in federal appeals court on its ability to set prices in its restaurants. The decision suggests that franchisors take a hard long look at the specifics of their contract language before changing course.

One reason that the franchise method of doing business appeals to so many is that, if used correctly, both parties operate with some freedom. A franchisor usually can expand its brands and system at a lower capital cost than by company-owned growth, and can teach its business methods but is independent.