In some cases, a franchise agreement designates an area or region where the franchised business is supposed to operate. It is meant to guarantee the franchisee their market share for its growth and success. When another franchised business encroaches on your...
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Does a franchisee have to honor sales?
If you started a franchise, you've agreed to run your business in a certain way. You sell specific products that you get from a certain supplier, your business looks similar to the other ones in the franchise and one of the benefits to you is that you get free...
Key areas that a franchise controls
If you're interested in starting a franchise, you're likely very intrigued by the types of rules and regulations you'll have to follow. These are set by the franchisor. They're the entity granting you the license, and you have to agree to abide by the rules that go...
How a franchisor’s actions can damage franchisees’ bottom line
Buying a franchise can be highly profitable. But as experienced franchisees know, a good working relationship between a franchisor and its franchisees depends a great deal on trust. When a franchisor breaks that trust and takes actions that go against its...
The pros and cons of being the first franchisee
Maybe you’ve been tossing around the idea of opening a restaurant. Then you learn that one of your neighborhood’s most popular eateries is becoming a franchise and advertising for franchisees. You’d be their first franchisee – or at least one of the first. Is that a...
Burgerim franchisees claim foul play
When you buy a franchise, you pay handsomely for the privilege. Therefore, it is essential that you understand what you are getting into, what you will get for your money, and that you get what you pay for. A current court case against the fast-food chain Burgerim is...
Make sure a franchise is sustainable before committing
As with any new business move, investing in a franchise can be an exciting prospect. Often, it might be the best option for you and you will see your business fortunes grow exponentially. Nonetheless, franchise acquisitions do not come without risks and it is...
Common sources of conflict in franchise arrangements
When embarking on a joint business venture such as a franchise, it is in the best interests of all parties to keep conflict to a minimum. At the end of the day, disagreements can cost both parties money. Unfortunately, conflicts do occur, and they have the potential...
McDonald’s settles franchise lawsuit over racial disparities
When it came to marketing toward minorities and minority owners, McDonald’s was one franchisor that took the lead, particularly among the Black community. Black entrepreneurs welcomed the attention and the opportunities presented by McDonalds. They bought into the...
Franchise exit fees: What to know
Every business venture has an element of risk involved – even a franchise agreement with a well-known brand. Opening a franchise may have seemed like a real shortcut to success but everything from the wrong business location to changes in the economic situation of the...
