When a franchisor is acquired by an investment banker or investment firm, several potential issues may arise for both the franchisor and the franchisees. Not all acquisitions lead to problems, but it's good to be aware of potential issues. Here are some concerns that may come up.
As in a lot of business methods, franchise myths seem to abound. Such myths harm both franchisors and franchisees.
Ultimately, the decision to start an independent business or buy a franchise will depend on your individual goals, skills, and resources.
Buying a franchise could be the best decision you ever make. But like with any major financial decision, there is much to consider before you make everything official.
Do you need to get out of a franchise agreement? Understand your agreement. Consult experienced franchise counsel.
On February 22, 2023, the United States Supreme Court clarified that if your partner commits fraud and becomes liable for damages, you, as a partner, are also liable. Most importantly, the damages may not be dischargeable in bankruptcy.
Caroline Fichter, a partner at Bundy & Fichter, recently received the prestigious Legal Eagle award by Franchise Times. This award recognizes outstanding lawyers in the franchising industry who have made significant contributions to the field and have helped shape the industry's landscape.
In the process of pursuing a franchise opportunity, you might run into someone called a franchise consultant, who may even work for a larger franchise consulting firm. This person promises to match you and your interests and abilities to the best franchise opportunity out there for you. Should you agree to work with that person or firm?
Franchises comprise about 10.5 percent of all businesses in the United States, representing 3 percent of the national gross domestic product (GDP). Also, according to the U.S. Bureau of Labor Statistics (BLS), about 20 percent of independent businesses shut down after two years, but 92 percent of franchises at two years are still doing well.
