Articles of interest for franchisees.
Before signing a franchise agreement, it’s crucial to know about the Top 5 Hidden Clauses in a Franchise Agreement that could impact your business. This article explores hidden renewal terms, non-compete clauses, mandatory upgrades, termination conditions, and transfer restrictions that could have significant financial and operational repercussions. Key Takeaways Renewal terms in a franchise agreement … Read more
The regulatory landscape for franchise non compete clause provisions has undergone significant transformation following the Federal Trade Commission’s 2024 ruling and subsequent legal challenges. While the FTC’s final rule banned most employment contracts containing non compete agreements, franchise relationships remain expressly excluded from these restrictions, creating a complex compliance environment that franchisors and franchisees must … Read more
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 … Read more
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. … Read more
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 … Read more
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 … Read more
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 … Read more
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 … Read more
“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 … Read more
Exiting a franchise agreement can be tough, but knowing your options and what’s in your contract is crucial. This guide helps you understand your rights and navigate the best exit strategies. We’ll cover how to communicate with your franchisor and handle legal aspects for a smooth exit. Key Takeaways Exiting a franchise agreement requires careful … Read more
