Mitigating Bankruptcy Risks as a Multi-Unit Franchisee
Recession-Resistant Franchising: A Legal Roadmap for Multi-Unit Operators As a franchise attorney with years of experience in the franchise restaurant space, I’ve observed a troubling trend emerging in the last 18 months: a significant uptick in bankruptcy filings among multi-unit franchisees. Leveraging brand recognition can help mitigate some of the financial risks, but this wave […]
What to Know Before Buying a Franchise
Buying a franchise is a big decision. What to know before buying a franchise includes understanding what you need to avoid costly mistakes. This article dives into key areas like researching franchisors, understanding financial obligations, and evaluating support systems. Prepare yourself with the crucial information needed to make an informed franchise investment. Key Takeaways Thorough […]
How Negotiable is a Franchise Agreement?
How negotiable is a franchise agreement? The answer depends on the franchisor’s flexibility and the terms in question. This article will explore key factors like the size and age of the franchise system, commonly negotiated terms, and tips for negotiating effectively. Dive in to learn what you can and cannot change in your franchise agreement. […]
Franchise Agreements: How to Negotiate Royalty Fees
If you’re considering buying a franchise, negotiating royalty fees can significantly impact your long-term profitability. This article will guide you on how to negotiate franchise royalty fees effectively, from understanding key factors to preparing a solid case. Keep reading to discover actionable strategies to secure better terms on your franchise journey. Key Takeaways Royalty fees […]
Are there exclusive territories or can other franchisees open near my location?
Are you wondering if your franchise will have exclusive territories, or can other franchisees open near my location? This guide will clarify how franchise territories work and what to expect regarding territorial exclusivity and competition, specifically addressing the question: are there exclusive territories or can other franchisees open near my location? Key Takeaways Franchise territories […]
How much control does the franchisor have over my franchise unit?
Understanding “how much control does a franchisor have over a franchisee” is essential before committing to a franchise agreement. This control can span from daily operations and marketing to pricing and brand standards. In this article, we’ll explore these aspects in depth, providing a clear picture of the franchisor’s control and what it means for […]
The Importance of Territories in Franchise Agreements
Territories in franchise agreements define the operational areas for franchisees, and this clarity is key to their success. Clear boundaries prevent conflicts, ensure fair market opportunities, and protect franchisees’ investments. By outlining exclusive or protected areas, these agreements boost customer loyalty and allow franchisees to concentrate their marketing efforts. This article will discuss the importance […]
Can I own other franchises or run other businesses while being a franchisee with this brand?
“Can I own other franchises or run other businesses while being a franchisee with this brand?” is a common question among potential franchisees. It depends on your franchise agreement. These contracts often have rules about what business activities you can engage in. This article will help you understand these rules, assess your ability to manage […]