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Do not overlook these issues when buying a franchise

On Behalf of | Dec 21, 2022 | Franchise Agreements

Franchise opportunities are an attractive way for interested parties to become business owners. Buying a good franchise may eliminate some of the startup tasks you might otherwise face.

That does not mean buying a franchise and operating it is easy and free of complications. Carefully considering issues like those below before you choose your business may boost your odds of success.


You will pay a one-time franchise fee in exchange for a proven business model, branding rights and training. On the other hand, royalty fees—typically a percentage of sales—are due to the franchisor periodically. Some franchisors also impose marketing, audit and technology fees.

Length of agreement

A long-term partnership between the franchisor and the franchisee can contribute to business prosperity. You will not have a chance to build such a partnership if the length of your agreement is short. Generally speaking, terms of about 10 years give parties ample time to build rapport and work toward mutual success.

Market saturation

If your region already contains many establishments in your industry of interest, it may not be able to support your franchise. Market saturation is an important issue, and it can mean the difference between failure and success.

The thoughtful exploration of issues like these before you hand over any investment funds can save you from a poor and costly choice. Guidance from someone with a background in U.S. franchise law can improve the way you make business decisions.

NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.