Planning to buy a franchise? Between undertaking your due diligence on the brand, speaking to other franchisees, inspecting possible site locations and perhaps securing finance, it is important not to forget the legal side of the process.
We all know that franchisees have to comply with the rules of the franchise — it’s part of the “deal” you make when you join a franchise network. But what happens if you don’t comply?
Despite a franchisor and franchisee each operating their own business, a franchisee relies on the systems, resources and guidance that the franchisor provides to succeed.
Sometimes, a franchise relationship will turn sour before the binding term of the agreement expires but you should consider the following before officially cutting ties.
If you’re thinking about owning your own franchise business, consider the earning potential you will gain from having the right to trade under an established brand name.