Franklin Startup Attorneys & Lawyers

What Is Right of First Offer?

Right of first offer is an agreement that when an owner is ready to sell or lease an asset, the holder of the right of first offer gets the first chance to buy or lease the property within a given time frame. Once the holder has made the offer, the seller is able to accept or refuse the offer. If the seller refuses it, he or she can move on to a third party offer.

Right of First Offer: In Depth

Most commonly, right of first offer is used in contracts within the real estate market and in the selling and buying of businesses. Typically, the stipulation is included in a tenant-landlord contract and in businesses with business partners and investors.

The most practical reason to have right of first offer is for a commercial tenant. If the owner decides to sell, it would give the tenant a chance to make an offer. If accepted, this prevents the need for the tenant to move his or her business to a new location.

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What Is Trademark Licensing?

Trademark licensing is the process by which a registered trademark owner, called a licensor or proprietor, allows another party, called a licensee, to make and distribute specific products or services under the licensor's trademark agreement. Trademark licensing is a type of merchandise agreement.

The licensor receives a certain amount of money or royalties, a percentage of all sales, in exchange for sharing the trademark. This compensation is also called consideration. Fashion and consumer products concerned with sports and entertainment are often sold under a trademark licensing agreement.

The licensee usually creates a trademark licensing agreement, but a licensor can also create this document. Both parties usually agree upon the terms before creating a trademark licensing agreement.

To be eligible for legal enforcement, a trademark license

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What Is Bridge Financing?

Bridge financing is when investors invest in a startup business with a short term loan in order to help it reach the next round of funding, on the basis that they will receive their money back. Basically, it is used to 'bridge' the gap between investments to keep a startup company afloat.

Startups use bridge financing or a 'bridge round' in order to help them get to a significant round of funding such as an equity funding (like a venture capital round) or the sale of the company.

The initial investors would receive a promissory note documenting their bridge investment. In this promissory note, the startup would promise to repay the lenders, sometimes with interest

For example, if you raised $500,000 in round A funding, but needed another $500,000 and you were projected to raise $2,000,000 in round B funding, you could use a bridge loan of $500,000 until the round B funding was complete, paying back $

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Types of Texas Business Licenses Available

Business licences in Texas are not managed on the state government level, meaning that all business licensing requirements are handled by county and city governments. Additionally, many Texas counties and municipalities do not require some business types to obtain general business licenses or permits. To determine if your new business will require a license or permit, visit your local county or city government office or website, or visit the Texas.gov website for more information.

Notwithstanding any license or permit requirements, businesses operating in Texas must register with the state in regard to the assessment and collection of taxes. For more information on state and local tax issues, visit the Texas Comptroller of Public Accounts website.

Texas Bu

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Poison Pill: What Is It?

A poison pill is a defense tactic companies use to deter or prevent hostile takeovers. These "shareholders rights plans" often threaten to dilute the price of stock enough to give the target company time to find alternative bids. It creates a cost that the purchasing company will have to pay after they've taken over. It also dilutes the value of the acquiring company's stock, to make taking over less appealing.

One company tries to wage a hostile takeover of another company by buying a large percentage of those shares. The company being taken over is called the target. The company or wealthy individual trying to take over is often called a corporate raider. The term poison pill does not refer to the target company harming their own interests. Instead, they're harming the corporate raider's interests.

Typically, corporate raiders try to increase a company's stock price when they acquire t

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