Franchise opportunities are attractive to aspiring business owners for a number of reasons. Owning a business may be fulfilling a lifelong dream, and available franchises come in all shapes, sizes and industries. Many franchises are also attainable for those with less...
franchise agreement
Understand the legal elements of a franchise agreement
“Trust but verify.” That phrase is most associated with the Cold War era, but it also makes practical sense in the modern world for a variety of reasons, including if you are considering buying a franchise. Prospective franchisees need to be able to count on the...
10 qualities shared by successful franchisees
If you have painstakingly saved money or raised capital to pursue the dream of operating your own business, buying a franchise is an attractive prospect. Becoming a franchisee gives you access to brands and products with a proven track record. However, your business’s...
A franchise lawyer is different than a business attorney in important ways
While all franchises are businesses, hiring a general business lawyer to handle franchisee issues can be a costly mistake. A knowledgeable franchise lawyer will have extensive experience with state and federal franchise laws, understands a franchise disclosure...
Common franchise red flags
While a franchisor has certain disclosure obligations that are required by federal and state laws, they are also interested in selling their franchise. In some cases, a franchisor may paint an unrealistic picture of what owning a franchise in their system is like....
Evaluating a promise of earnings
Investors who buy a franchise should be wary of a franchisor’s guarantee of making a large amount of money quickly. Nonetheless, the franchisor may disclose information about potential sales and income known as an earnings claim or financial performance representation...
Common risks to consider before buying a franchise
Hindsight is 20-20, but those looking to buy a franchise need to exercise due diligence to get all the information available. This can help reduce the amount of risk involved. However, uncertainty comes in many forms, and one or a combination of several issues can...