Green and eco-friendly franchise opportunities have exploded onto the scene in recent years. With consumers becoming more aware of the environmental effects of their purchases and many major corporations pursuing triple-bottom-line sustainable growth strategies, many entrepreneurs and small business owners are seeing the benefit of going green as well.

Before you purchase a green franchise (or any other franchise), it is essential that you conduct your due diligence. This involves speaking with the franchisor’s representatives and current and former franchisees, making sure you understand the terms of the Franchise Disclosure Document (FDD), and negotiating the terms of your franchise agreement. Some of the key questions you will want to answer include:

  • How “green” is the franchise, really? Many companies make false and exaggerated claims of environmental-friendliness, and “greenwashing” has led to unfavorable press for a variety of brands. If you are going to be promoting the green aspect of your business, it is important that you know just how green it really is.
  • What are your rights regarding renewal, transfer and termination? Franchisors often impose such stringent conditions on franchisees’ renewal and transfer rights that they are hardly “rights” at all. In addition, while franchisees rarely have a right to terminate, franchisors will typically reserve the right to end franchisees’ tenures for as many reasons as possible. Before investing in a green franchise, you need to make sure that you will have an adequate opportunity to profit from your investment.
  • Are there supplier restrictions or mandatory purchases? With a franchise focused on environmental friendliness and sustainability, there are more likely to be restrictions on not only the types of products you sell, but on the vendors from which you purchase them as well. You may even be required to purchase products or supplies directly from the franchisor. Supplier restrictions and mandatory purchases often result in inflated prices and unnecessary costs franchisees, so you will want to make sure you can still operate successfully under the franchisor’s green regime.

Of course, there are many more issues to consider when purchasing a franchise. For more information, we encourage you to read:

Green and Eco-Friendly Franchise Opportunities

A random search online showed that the following are among the leading green and eco-friendly franchise opportunities available:

  • Filta – A business-to-business franchise opportunity that offers “Environmental Kitchen Solutions” to brands such as Ruth’s Chris Steakhouse, Chick-fil-A and Marriott Hotels.
  • Renew Crew – An outdoor pressure washing and cleaning franchise that offers, “world-class customer service while delivering a . . . greener clean.”
  • OXXO Care Cleaners – A dry cleaning franchise that promotes eco-friendly and “green cleaning” services.
  • Pono Home – A green franchise opportunity that targets the “virtually untapped” market of home efficiency.
  • Turfscape – A synthetic turf franchise serving residential and commercial customers that promises to “help save the planet one installation at a time.”

Discuss Your Green Franchise Opportunity with Attorney Jeffrey M. Goldstein

The Goldstein Law Firm is a national franchise law firm that assists entrepreneurs in evaluating franchise opportunities and negotiating franchise agreements. If you would like to speak with an attorney about a green franchise that you are considering, call us at (202) 293-3947 or contact us online to schedule a free consultation today.

Disclaimer: The identification of any franchise or company on this website is not an endorsement of any aspect of that entity in any regard, nor should it be taken as one.

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