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Can business partners buy a franchise?

On Behalf of | Oct 21, 2024 | Buying A Franchise

You know that you want to become a franchisee. You’re interested in running a franchise restaurant, for example, and you believe that it can be a lucrative investment. Maybe you know that there is a large target audience in your area and they do not have enough options currently, so you see an opportunity to tap into this market.

However, you are considering working with a business partner. If you want to start a partnership, do you still have the option to buy a franchise? Or do you have to become a franchisee on your own?

Partners are usually allowed

In many cases, the answer is yes: You can become a franchisee with a business partner. You share the responsibilities and roles within the company, just as you would if you started your own business.

In fact, some franchises almost encourage partnerships. For example, Jack-In-The-Box notes that someone needs to have $500,000 in liquid capital to become a franchisee. They also have to have a net worth of $1.5 million. But they can work with a business partner, which makes it much easier for them to meet these thresholds jointly.

That said, becoming a franchisee with a business partner can be a bit more complicated. You need to make an official partnership agreement. The roles both of you will have with the company need to be well-defined. You also have to ensure that both you and your business partner understand what it means to become a franchisee, as this is a bit different than starting a business from the ground up.

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.

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