There seems to be an ugly trend in the franchise world, an unspoken conspiracy among drafters of franchise agreements to shift the entire burden of the franchise business to the franchisee. The steps a franchisee takes before buying have become even
… because franchise agreements can look just like credit card agreements.
I started reviewing and writing franchise agreements, even before I moved to Texas in 1989. When I first got here, franchise agreements seemed pretty balanced
If you are new to the world of franchising, you may be surprised to learn how rigid and inflexible the franchise “rules” can be. It seems inconsistent with a business format that is praised as an avenue for creativity, entrepreneurship and the
Whether buying or selling, there are two schools of thought: 1. Being a franchise is good; or 2. Being a franchise is bad.
Why good? It has become a more understood method of expansion. It is true, you can grow a business using other people’s money. You can buy a “proven” concept with support and know how—if you do your homework… Continue reading
When business is good and the franchisor-franchisee relationship is positive, the contract doesn’t matter. If things goes south, it’s all you have. Too often franchisees are so caught up in the struggle to make their business profitable and keep it going, that they put off addressing core problems involving the franchise. They just cannot seem to find enough time to deal with difficult underlying issues. Continue reading