We write a lot about franchising on our blog. Over the years, we’ve covered topics ranging from what you need to know before buying a franchise to what you can expect during a dispute with your franchisor. But there’s one question that we’ve never answered directly.

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The Franchise Times recently published a list of its “Breakout Brands” in franchising. The list highlights a handful of concepts that are “[b]eginning their journey up the annual Franchise Times [Top 400] ranking” after they “turned in notable performances in 2022.” If you are thinking about buying a franchise, should you put a “breakout” concept on your list? Here are some key considerations from national franchise attorney Jeffrey M. Goldstein.

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Buying a franchise is a big deal. It is a major investment, and if you will be running the business, your franchise will soon consume your daily life. As a result, informed decision-making is critical. So, what do you need to know before you buy?

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When you get into a dispute with your franchisor, your legal rights are determined largely (though not entirely) by the terms of your franchise agreement. During a dispute, some franchise agreement terms are more important than others, and knowing which terms apply—and how they apply—is critical for making informed decisions. In this article, franchisee lawyer Jeffrey M. Goldstein discusses 10 key franchise agreement terms when facing a dispute with your franchisor.

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Many franchise agreements contain a very important clause that is easy to overlook if you aren’t careful. This clause—which may or may not be clearly labeled—specifies the amount of time that the franchisee has to open for business.

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Lots of people dream of owning a hotel. Each morning, you wake up, have a cup of coffee, and take in the view while your guests come down for breakfast. With a great location, you have reliable revenue, and you are growing an asset that you will one day be able to sell to fund a very comfortable retirement.

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“What are my legal rights as a franchisee?” As a franchisee law firm, we hear this question all the time. Most often, it comes from individual franchisees who are struggling to get by and who want to know what options they have—if any—to try to protect their investment.

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As a franchisee, maintaining a good working relationship with your franchisor is important. It’s important for managing the stress of franchise ownership, it’s important for maintaining good lines of communication, and it’s important for managing your risk. If you get labeled a “problem franchisee,” not only can everything become much more difficult, but it can also put your franchise (and possibly your finances) in jeopardy.

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As a prospective franchisee, you want to put your best foot forward. Once you do your preliminary research and decide on the franchise concept you want to pursue, you want to make sure you give yourself the best chance possible to move forward with an acquisition. While some franchisors are desperate for franchisees, these probably aren’t the franchisors you want to consider (at least not without being very careful). On the other hand, if a franchisor only has a select few desirable territories left in your area, you will want to do everything you can to make sure you don’t miss out on a good opportunity. 

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Like all industries, franchisor-franchisee relationships in the hotel industry often lead to disputes. Franchisors often over-promise and under-deliver, and franchisees often find themselves struggling to remain solvent due to factors beyond their control.

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