Buying a Franchise

Now let’s look at franchising from the franchisee’s perspective. Purchasing a franchise is an important business decision involving a substantial financial commitment. Potential franchise owners should strive to be as well informed as possible before purchasing a franchise and should be well aware that it is often legally and financially difficult to exit a

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Steps in Purchasing a Franchise

Purchasing  a  franchise  system  is  a  seven-step  process,  as  illustrated  in Figure 15.3. The first rule of buying a franchise is to avoid making a hasty de- cision. Again, owning a franchise is typically costly and labor-intensive, and the purchase of a franchise should be a careful, deliberate decision. Once the decision to purchase

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Legal aspects of the Franchise relationship

According to the Federal Trade Commission (FTC), a franchise exists any time that the operations of a business involve (1) the selling of goods or services that bear a trademark, (2) the retention of significant control or assistance by the holder of the trademark on the operation of the business, and (3) royalty pay-

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Franchise Ethics and International Franchising

There are a number of additional issues pertaining to the franchisor–franchisee relationship. Three important topics, for both franchisors and franchisees, are franchise ethics, international franchising, and the future of franchising as a method of business ownership and growth. 1. Franchise ethics The majority of franchisors and franchisees are highly ethical individuals who are interested

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