Nov 14, 2022 - Blog, Franchise Articles by |

The New Year brings new opportunities, and for many people, this means buying a franchise. This is especially true heading into 2023, with many continuing to explore alternatives to traditional employment due to the economic and societal impacts of the COVID-19 pandemic.

What To Consider When Buying a Franchise in 2023

If you are thinking about buying a franchise in 2023, what do you need to know? Here are seven important considerations from attorney Jeffrey M. Goldstein:

1. Does the Franchise Concept Have Staying Power?

As franchising continues to grow in popularity, we are seeing more and more start-up franchise concepts. Many of these concepts are designed to profit off of fads and trends, and this means that they don’t necessarily have staying power. If you are considering a trendy franchise, it will be important to make sure you are confident in its long-term potential.

2. Is the Franchise System Sound?

Along with analyzing the franchise concept, you will also need to analyze the franchise system. Does the franchisor have a strong and recognizable brand? Does it have real-world-tested business methods and products? Are its executives experienced in the franchise industry? These are all important factors to consider.

3. Are Any Major Changes On the Horizon?

Recently, we have seen a trend of franchisors adopting new technologies—everything from AI ordering systems to “automated pizza dispensers.” Before you invest in a franchise, you will want to try to make sure that you will not have to make a significant additional investment in new technology shortly after you sign.

4. How Will You Finance Your Franchise?

Speaking of investment, how will you finance your franchise? While there are several options, some of these options are smarter than others. Small Business Administration (SBA) loans are good options for many first-time franchise buyers, and there are special programs available to veterans and other populations as well.

5. What Are the Terms of the Franchise Agreement?

When buying a franchise, it is extremely important to make sure you understand the terms of your franchise agreement. This means hiring a lawyer to conduct a thorough franchise agreement review. Depending on the terms of the agreement, you may need to have your lawyer negotiate the agreement as well.

6. What Do Current and Former Franchisees Say About Their Experience?

One of the best ways to gather information about a franchise opportunity is to speak with current and former franchisees. You can (and should) ask lots of questions, and you should avoid letting the franchisor steer you toward its top performers only.

7. Are You Prepared for a Long-Term Commitment?

Finally, it is important to understand that buying a franchise is a long-term commitment. You will be locked in for the duration of your franchise agreement, and it could easily take this long (or longer) to recoup your initial investment.

Request a Free Consultation About Your Franchise Opportunity

Are you thinking about buying a franchise in 2023? If so, we encourage you to contact us for more information. Please call 202-293-3947 or contact us online to get started with a free consultation.

Lawyer USA

Complex Commercial Litigation Law Firm of the Year – USA

Lawyer USA

Complex Commercial Distribution Litigation Representative

Lawyer USA

Antitrust & Franchise Law Firm of the Year – Washington DC

Lawyer USA

Best Franchise Lawyer of the Year – New York

Lawyer USA

Best for Franchise Disputes – USA

Lawyer USA

Complex Commercial Litigation Law (Franchisees and Dealers) 2021 – USA

Lawyer USA

Antitrust and Franchise Law Firm of the Year in DC

Lawyer USA

Leading Professionals in Law

Lawyer USA

Franchise Law
in the District of Columbia

Lawyer USA

Franchise Law Firm
of the Year – USA

Lawyer International

Lawyer International
Legal 100
2018

Lawyer International

Lawyer International
Legal 100
2019

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Lawyer
of the Year
ACQ5 GLOBAL AWARDS 2019, JEFF GOLDSTEIN, GOLDSTEIN LAW FIRM, PLLC

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Law Firm
of the Year
ACQ5 GLOBAL AWARDS 2019, GOLDSTEIN LAW FIRM, PLLC

Lawyers of Distinction logo

2020 Power Lawyers

Esteemed Lawyers of America Logo

Esteemed Law Firm Complex Litigation

Global Law Experts Logo

Recommended Firm in Franchise Litigation

Who's Who Attorney Logo

Top Attorney USA – Litigation

Avvo Franchise Lawyer Symbol

Superior Attorney in Franchising

Avvo Franchise Lawyer Symbol

Superior Attorney in Antitrust

Finance Monthly Global Award Winner Logo

Franchise Law Firm of the Year

Lead Counsel logo

Chosen Law Firm for Commercial Litigation

BBB of Washington DC

A+ Rated

Washington DC Chamber of Commerce

Verified Member

Lawyers of Distinction logo

Franchise Law Firm of the Year

ISSUU

Best Law Firm for Franchise Disputes in 2017

Law Awards Finanace Monthly

Franchise Law Firm of the Year - 2017

Top Franchise Litigator for Franchisees and Dealers

Top Franchise Litigator for Franchisees and Dealers

2017 Finance Monthly Award

2017 Finance Monthly Award

ACQ5 LAW AWARDS 2018

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2018

ACQ5 LAW AWARDS 2019

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2019

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year
Global Awards 2017

Global Law Experts

Franchise Law Firm
of the Year
in New York – 2019

Finance Monthly Law Awards - 2018

Finance Monthly Law Awards - 2018

Franchise Law Firm of the Year

Franchise Law Firm
of the Year
Global Awards 2018

Contact Us

Goldstein Law Firm, PLLC

1629 K St. NW, Suite 300,
Washington, DC 20006

Phone: 202-293-3947
Fax: 202-315-2514

Free Consultation

Downtown Chicago Office

30 South Wacker Drive 22nd Floor #3341,
Chicago, IL 60606

Phone: 312-382-8327

Free Consultation

Free Consultation