Monday, September 22, 2014

Buying a franchise not the snap it once was

Ready-made business--name recognition, supplies, management help...all for a price. According to Sarah E. Needleman, WSJ, Aug 25, 2104, though, this route to being in business is getting bumpier.

It's harder to find out what's what--and once you buy in, harder to get leverage.

Franchisers are not required to share key info beforehand.

There is no central regulator.

Disclosure documents are more complicated.

The bad economy has caused franchisers to "stretch the truth" about what franchisees can expect.

The agreements you do sign are more stringent. Class action suits and actions, for example, can be forbidden.

Check with the International Franchise Assn--and also the franchise's Facebook, Yelp, and Linked In profiles and comments.

Take your time--this is big money--going out, anyhow.

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