On Monday, May 11, 55-year-old Craig Stevens of Newport Beach pleaded not guilty in a scheme allegedly designed to bilk investors out of more than $4 million by selling ‘bogus’ In-N-Out Burger franchises in the Middle East, according to an LA Times article.

Stevens, who was in federal court in Santa Ana, pleaded not guilty to wire fraud. Prosecutors allege that in January of 2014, Stevens contacted potential investors via email, peddling the franchises for approximately $150,000 per location. Royalties would cost an added $250,000 annually, according to the article.

Charge documents filed by the U.S. attorney’s office claim that through his email scheme, Stevens solicited about $4.27 million. Court documents also allege that in June of last year, Stevens passed off a fake licensing agreement for an In-N-Out franchise via email to a Lebanese investor, who was not identified.

While Stevens made claims to investors of partnerships and franchise agreements, In-N-Out Burger Inc., based in Irvine, has been in business since 1948 and is privately owned. The company says it has no such agreements with third parties. Stevens is scheduled to go on trial on the wire fraud charge in July.

As seasoned Los Angeles business attorneys, it is sometimes difficult to believe how gullible some individuals are, particularly when it comes to email or other schemes on the Internet – but it happens every day.

Before you invest in any franchise, it is vital to have a skilled attorney review all agreements, restrictions, rights, purchase or sales agreements, and other relevant documentation regarding the purchase of a franchise. Franchise law is complex, particularly given the fact that so many businesses are crossing into countries outside of the U.S. today.   Franchises are also subject to numerous regulations, so it is essential to have every detail analyzed with a fine-tooth comb.

If you’re considering investing in a franchise opportunity, speak with the professionals at Spotora & Associates first.

According to a recent article at the Democrat & Chronicle, Xerox has acquired Healthy Communities Institute, a public health data firm based in Berkeley providing a cloud platform that makes it possible for public health agencies, hospitals, and community coalitions to access community health and socioeconomic information easily. This allows these organizations to have a clearer understanding of risk factors, community demographics, and other information related to health.

Healthy Communities Institute supports organizations in 36 states in the U.S.. Xerox intends to integrate Healthy Communities Institute into its Midas+ Juvo Care Performance analytics platform in an effort to ultimately reach improved health care outcomes due to an enhanced comprehensive view of patient care for the organizations who use the cloud-based platform.

Midas+ senior vice president and managing director Justin Lanning said in a statement that “With this acquisition, we are enriching our health care business, evolving our offerings and innovating to address market changes.” Lanning went on to say that the acquisition would make it possible for clients to identify populations that are more at-risk, resulting in timelier clinical interventions that are more personalized. Ultimately, it is hoped the acquisition will improve health care while reducing costs.

Detailed terms of the acquisition were not disclosed in news articles.

At Spotora & Associates, our merger and acquisitions attorneys know there is much involved in acquiring a business, whether a company is acquiring another business or the company is to-be acquired. When structured properly, these deals can result in big companies expanding their competitive strengths while smaller companies enjoy growth opportunity. Ultimately, we work with our clients to help them achieve their goals and advise them on wise, profitable business decisions. Los Angeles area companies can rely on our skilled team of business lawyers for exceptional legal guidance, insight, and support in all of your business dealings.

On Monday, May 4 it was announced that Steve Easterbrook, new CEO of McDonald’s Corporation, would reorganize the company’s business units, cut costs, and sell restaurants to franchisees in an effort to transform the world’s largest restaurant chain into a “modern, progressive burger company.” Easterbrook made the announcement via video, in which he vowed to eliminate “cumbersome” management and thoroughly analyze the business for inefficiencies in an effort to save the corporation about $300 million net annually, most of which he anticipated would be realized by the end of 2017.

Mike Andres leads the U.S. McDonald’s market, which news reports at Reuters claim account for more than 40% of the fast-food giant’s operating income. He will continue to lead this market. In the video, Easterbrook said that in the year 2015, $8 to $9 billion would be returned to shareholders of McDonald’s.

Ultimately, the goal is to improve how consumers perceive McDonald’s restaurants in terms of slow service and food quality. In recent years, McDonald’s has been in a decline in the burger fast-food franchise industry. Easterbrook said in his announcement following one of the iconic fast-food restaurant’s worst years that he would “not shy away from the urgent need to reset this business.” Easterbrook took the McDonald’s helm on March 1 of this year.

Prior to Easterbrook taking over the helm, it was planned that McDonald’s would sell 1,500 restaurants by 2016. Under Easterbrook’s management, the plan is to sell 3,500 restaurants by 2018 to franchisees, which would result in an increase of franchisee ownership around the world from 81% to 90%. However, it appears that investors were not thoroughly impressed by Easterbrook’s plan, considering that the announcement seemed to provoke a “prove it” sentiment in immediate reactions noticed in investors according to Stephen Anderson, analyst at Miller Tabak & Co.

Australia, Canada, France, Germany, and the UK will comprise the new “international lead” market according to Reuters, which accounts for 40% of the burger franchisors’ operating income.

McDonald’s has been a successful franchise in the U.S. and many international markets for decades, and has proven a successful business model for tens of thousands of franchisees. However, the latest news can make anyone who is thinking of investing in a McDonald’s franchise apprehensive, to say the least. Anyone considering a franchise investment should consult with an experienced and knowledgeable attorney before making a decision that could change your life, and your financial future. Count on the Los Angeles business attorneys at Spotora & Associates for sound legal guidance and support in franchising or any business matter.