What You Need to Know if Your Franchise is Struggling Due to Inflation
Nov 28, 2022 - Blog by Goldstein Law Firm |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.
As a Franchisee, What Is Your Long-Term Plan?
Nov 23, 2022 - Blog by Goldstein Law Firm |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.
How Should You Approach Your Franchisor About Buying a Second Franchise?
Nov 21, 2022 - Blog by Goldstein Law Firm |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.
Are Franchise Agreements Negotiable?
Nov 16, 2022 - Blog by Goldstein Law Firm |“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.
7 Considerations for Buying a Franchise in 2023
Nov 14, 2022 - Blog by Goldstein Law Firm |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.
Your Franchisor Misled You—Should You Sue?
Oct 31, 2022 - Blog by Goldstein Law Firm |According to a recent article in the Franchise Times, a group of Cell Phone Repair franchisees has sued the franchisor’s parent company alleging that it misled them into incurring substantial additional costs. As reported, the franchisees allege that the franchisor’s parent company—Assurant, which insures cell phones and other mobile devices—promised to send insured customers to their franchised outlets for covered repairs. However, after franchisees invested in preparing their stores to manage this additional volume, the plaintiffs allege that Assurant reversed course and decided to handle these covered repairs in-house.
What Happens When Your Franchise Agreement Is Over?
Oct 26, 2022 - Blog by Goldstein Law Firm |Unlike most things, when you buy a franchise, you do not own it permanently. Sooner or later, your contractual relationship with the franchisor will come to an end. When this happens, you will be subject to various post-expiration contractual requirements, and, depending on the circumstances, you could potentially face other post-expiration risks as well.
Did You Graduate from College with a Certificate or Degree in Franchising?
Oct 24, 2022 - Blog by Goldstein Law Firm |Now that it has been a few years since colleges first started offering certificate and degree programs in franchising, we are seeing more graduates forego the job market and pursue franchise ownership. If you are a recent graduate—or if you are preparing to graduate after the upcoming spring semester—and are thinking about buying a franchise, there are some facts you need to know that you most likely didn’t learn in school.
How Do Franchise Owners Earn a Living (and What If You Can’t)?
Oct 17, 2022 - Blog by Goldstein Law Firm |When evaluating a franchise opportunity, one of the most important questions you need to ask yourself is, “Do I realistically think I will be able to earn a living?” Operating a franchise entails paying numerous expenses—including not only ordinary business expenses like wages and inventory but also royalty fees, advertising fund contributions and other franchisor-imposed costs. If you need to take out a loan to launch your franchise, this will add to your monthly costs (and your financial risk) as well.
What Are the Disadvantages of Buying a Franchise?
Oct 10, 2022 - Blog by Goldstein Law Firm |If you are looking for information about buying a franchise online, you will find plenty of articles about the advantages of franchise ownership. But, you likely won’t find much about the disadvantages of buying a franchise. So, what are these disadvantages? Here is an overview of what prospective franchisees need to know.