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, the outcome is the same
Material risks cannot be accurately determined before you sign
Mergers and acquisitions
Monopoly
Must buy only through franchisor (tied buying)
Must sell business (eventually) through
http://infofranpro.wikidot.com/the-top-30-business-risks-of-franchising
sell business (eventually) through franchisor, No franchisor support, Only 3 ways out: resell (next loser), independence (be sued) or abandon (bankruptcy),Opportunism: contract creates powers which
http://infofranpro.wikidot.com/20080710-information-is
Must buy only through franchisor (tied buying)
Must lease, not buy, land and/or building
Must pay future royalties, even when the franchise fails (liquidated damages)
Must sell business (eventually
http://infofranpro.wikidot.com/risks
… if franchisors are held liable for predicting business prospects in an unrealistic way, says Dick, they may be reluctant to enter into certain markets in the first place.
http
http://infofranpro.wikidot.com/20101110-lexpert-franchisors
the advantage of having been through the selling process hundreds of times. This is likely to be your first experience.
No Current Franchises:
Treat a franchisor that has few or no current franchises
http://infofranpro.wikidot.com/20090708-franchising-a1
, franchising, Must buy only through franchisor (tied buying), Name and shame campaign, No franchisor support, Misrepresentation, Only 3 ways out: resell to next loser, independence & be sued
http://infofranpro.wikidot.com/20120601-dramatic-expansion
of the remodel incentive programme, the franchisor announced that it would invest $40 million to revive the brand in Québec, $20 million of which would come from the franchisees, through contributions
http://infofranpro.wikidot.com/20120704-franchisors-what
Lo and behold, if they have assets apart from what they poured into the business, franchisors will say, "You signed up for a 20-year franchise. You closed after five years. I have 15 more
http://infofranpro.wikidot.com/20100303-tension-rules
if their franchisor is in administration.
8. Loss of business value
It goes without saying that any franchisee who might have been planning to sell their business before their franchisor goes into administration
http://infofranpro.wikidot.com/20141124-when-franchisors
service franchise loans, the franchisor is putting itself into the position of banker - which is generally much different than the company's core business, whether that involves selling blinds
http://infofranpro.wikidot.com/20090401-tight-credit
