As a prospective franchisee, you need to know that you are making sound decisions based on all pertinent information. You need to feel confident in your buying decision, and you need to go into your franchise opportunity with your eyes wide open.
If you are interested in buying a franchise and the franchisor considers you to be a qualified candidate, it will provide you with two key documents—the Franchise Disclosure Document (FDD) and the franchise agreement. Both of these documents are extremely important, and, as a prospective franchisee, it is imperative that you carefully review both documents with the help of an attorney.
When you buy a franchise, your relationship with the franchisor is governed by the terms of your franchise agreement. This is a long, complex and legally-binding document, and signing a franchise agreement can put you in an untenable situation if you aren’t careful. As a prospective franchisee, you need to make informed decisions throughout the buying process—and this includes making informed decisions about the terms to which you are willing to agree.
If you’ve spent the past two years working from home (or watching others work from home while you toiled away at the office), you may be thinking about buying a home-based franchise. If so, here are some important considerations to keep in mind.
If you own a franchise and you want out, you are not alone. While franchisees often go into business with rose-colored glasses, they often end up jaded, ready to sever their ties with their franchisor and move on. But is this possible? Can you terminate your franchise and still keep your business?
You did it. You got through the process of buying a franchise, and you did everything you needed to do to open your franchise on time. You are officially open for business as a franchisee.
While rising interest rates have put a slight damper on the housing market, now is still a very good time to sell a home. In many markets, homes are still going under contract at the asking price (or above) within 24 hours of listing. With the potential for the Federal Reserve to raise rates even higher, many buyers are also still seeking to get in on the action before it is too late.
If we’ve learned anything in 2022, it is that we need to expect the unexpected. Just when it seemed like things were starting to get back to normal, a new set of challenges threw a wrench into most people’s and businesses’ plans for the new year. But, according to a recent report from Franchise Direct, the franchise industry—as a whole—is thriving. Revenues are up, more businesses are franchising, and the industry’s overall economic impact is bigger than ever.
You bought a franchise, and your franchise failed. You weren’t able to generate the revenue you needed, and you were forced to shut down without experiencing the growth—and income—you anticipated. But does this mean franchise ownership isn’t for you? Or does it mean it’s time to try again? These are complicated questions. Ultimately, whether you should consider buying another franchise depends on two primary factors: (i) whether you know why your franchise failed, and (ii) whether you have the financial stability to invest in another outlet.
While political division in Congress continues to serve as a roadblock to the passage of federal legislation legalizing cannabis in the United States, cannabis franchises are continuing to push forward with expansion. Currently, the Marijuana Opportunity Reinvestment and Expungement Act (MORE Act) is pending before the Senate, but similar bills have failed in the past. The growth of the legal cannabis industry in the United States through franchising could help spur legislative action, but at this point, significant uncertainty remains—this is true even in New York where recreational use has been legalized at the state level. Here are some more insights from New York City franchise lawyer Jeffrey M. Goldstein.