The FTC recommends: (1) start by examining your own financial capabilities in light of the risks; (2) research and understand the marketplace of franchising, including the franchisor’s experience and the competition; and (3) assemble an informal panel of trusted advisors to help you make the decision.
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.
Do you need to get out of a franchise agreement? Understand your agreement. Consult experienced franchise counsel.
Proposal would reduce fraud in franchising and level the playing field for franchisors and franchisees.
