So, you’re thinking about buying a franchise in Philadelphia. You’ve got a concept in mind (or maybe you don’t), and you need to know your next steps. What do you need to do to set yourself up for success? What mistakes do you need to avoid during the buying process? Can you trust the information the franchisor gives you? Here’s what you need to know.
Author: Goldstein Law Firm
What should you do if your franchise is struggling? Unfortunately, this is a question that many franchisees find themselves asking in 2023. As the economy continues to struggle and inflation remains well above average, owning a successful franchise today is as difficult as ever.
If you are thinking about buying a franchise in 2023, you are not alone. As a whole, the franchise industry is continuing to expand, and market analysts are predicting continued growth over the next five years.
As 2022 comes to an end, it is time for our annual Year in Review. Here is a look back at some of the top articles we published throughout the year.
Lots of law firms—including ours—publish articles discussing how to buy a franchise. But, few legal commentators, if any, discuss how not to move forward with a franchise opportunity.
As a franchisee, you will quickly become familiar with the lopsided nature of the franchise relationship. But, while franchisors exert significant control over their franchisees, there are practices that go too far. These unfair franchise practices will entitle franchisees to remedies in many cases—but franchisees who fall victim to these practices need to know when it is time to assert their legal rights.
While the rising inflation in the United States has impacted all types of businesses, it has hit many franchisees particularly hard. Not only are many franchises retail businesses that rely on consumers’ discretionary income, but franchisees’ royalty and advertising fund obligations limit their profitability as well.
When buying a franchise, it is important to have a long-term plan. Buying a franchise is a long-term investment, and if you don’t have a strategic plan for recouping your investment, you could find yourself struggling to get out from under significant financial losses.
As a franchise owner, your options for scaling your business and maximizing your profitability are limited. Not only are you likely geographically limited by your territory, but your options for expanding and offering new products and services are likely limited as well. Perhaps unsurprisingly, this is by design. Franchisors want to extract as much revenue from their franchisees as possible, and, as a result, when franchisees want to expand, their only viable option is often to buy a second franchise.
“We don’t negotiate our franchise agreement.” If you have heard this from a franchisor’s sales representative, you are not alone. Many sales reps tell candidates that their franchise agreements are non-negotiable, and while some franchisors simply refuse to negotiate, more often this is a sales tactic designed to get candidates to sign on the dotted line.