Sep 23, 2024

Buying a franchise in Illinois requires careful decision-making. This applies across the board—from choosing the specific franchise opportunity that you want to pursue to choosing your territory. When it comes to choosing your territory, there are lots of factors to consider, and this makes it critical to work with an experienced Illinois franchise attorney who can help you make informed decisions throughout the buying process.

May 25, 2022

In most parts of the country, franchisees negotiate territories measured in miles. But, in New York City, a territory with a several-mile radius could effectively provide protection for the entire city. So, if you are buying a franchise in one of the five boroughs, what can you reasonably expect in terms of your “protected” or “exclusive” territory? New York City franchise lawyer Jeffrey M. Goldstein shares his thoughts.

Jul 31, 2017

You are planning to buy a franchise, and one of the benefits you are most looking forward to is the fact that you will have an exclusive territory. Once you sign your franchise agreement and pay the initial franchise fee, you will be the only one operating under your franchisor’s trusted brand and proven business system for miles around. But, is your territory really exclusive? Not all franchisors offer exclusive rights, and those that do not are not necessarily forthcoming about the limited protections they offer (if they offer any at all). Here are some important considerations to keep in mind when trying to interpret the territory provision of your franchise agreement: 4 Ways Territory Rights Not Be What They Seem 1. Your Territory is Protected but Not Exclusive. Many franchisors offer territory rights that are protected but fall short of being truly exclusive. The most common example of this is a reservation of rights for the franchisor to sell, “through alternate channels of distribution.” The territory may even be labeled as “exclusive,” and then have this carved out as an exception. 2. Your Territory is Not Protected at All. Some territory provisions are written to exclusively protect the franchisor. Consider this: “Franchisee’s territory (the ‘Territory’) is the geographic area within a two-mile radius of the franchised outlet. Franchisee may not sell outside of the Territory without Franchisor’s express written consent.” This provision “grants” a territory, but what does it really say? There is no protection, and all it really […]

Jun 24, 2016

As a franchisee (or prospective franchisee), among the many important issues you need to consider is the question of geographic protection. When you buy a franchise, you expect to benefit from the franchisor’s brand, systems and goodwill, and the last thing you want is for another franchisee – or even the franchisor – to end up using these against you. When many people hear that they have a “territory,” they assume this means that their territory is exclusive—that is, that no one else within the franchise system will be able to compete against them in their territory. Unfortunately, this isn’t always the case, and the actual territorial rights that are offered (if any) often are not clear in the franchise agreement or the Franchise Disclosure Document (FDD). Exclusive vs. Protected Territories Although they are often used interchangeably, “exclusive” and “protected” can actually have different meanings in the franchise context. If your franchise territory is truly exclusive, your business should be the only source of the franchisor’s goods or services in the territory. On the other hand, if your territory is merely protected, then your franchise agreement may authorize certain forms of competition, such as franchisor sales through alternative channels of distribution (i.e. the internet). As a third option, some franchise systems do not offer any territorial protection at all. In these systems, the franchisor is free to open competing outlets and use alternative channels wherever it pleases. While you may initially be willing to trust your franchisor not to “cannibalize” […]

Sep 16, 2024

When you are thinking about buying a franchise, one of the key factors to consider (among many others) is the size and geographic dispersal of the franchise system. This includes not only the number and location of unit franchises, but also the number and location of any master franchisees.

Aug 16, 2024

If you are thinking about buying a franchise, how can you make sure you don’t regret your franchise purchase? This is a critical question that far too many prospective franchisees fail to take seriously. Buying a franchise requires a substantial investment that you can lose if your business isn’t successful, and even after you lose your investment, you can still find yourself facing claims from your former franchisor for lost future royalties. So, how can you ensure that you are making a sound decision? National franchise lawyer Jeffrey M. Goldstein explains.

Jun 28, 2024

If you are dissatisfied with your franchise purchase, you are not alone. While some franchisees are able to find success, many franchises fail—and a significant percentage do so within the first two years of ownership. In this scenario, what options do you have available? Can you rescind your franchise agreement? New York franchise attorney Jeffrey M. Goldstein explains.

Apr 16, 2024

When you are thinking about buying a franchise, it is critical to make sure you are making informed decisions. While you can find lots of useful information online, you need to be careful to ensure you are not relying on inaccurate information that will compromise your decision-making. Reading blog articles from a reputable franchisee law firm is a good option, and looking at government resources is a good option as well.

Mar 22, 2024

The pet industry is booming. As recently stated in an industry report on Franchise Direct, “People LOVE their pets—and they’re spending the money to prove it.” But does this mean that you should buy a pet franchise in 2024? Here are some key considerations from franchisee attorney Jeffrey M. Goldstein.

Mar 15, 2024

When choosing a franchise to buy, there are numerous important factors to consider. What type of business are you passionate about owning? What type of business is missing in your local area? What is the total initial investment? Can you expect to recoup your investment during the initial term of the franchise agreement? This is just a small sampling of the type of questions you will need to answer—in many cases, with the help of an experienced Massachusetts franchise lawyer.