Why some entrepreneurs choose to open a franchise

Opening a franchise is often an attractive proposition for those who wish to go into business for themselves. A franchise offers a recognized brand name and allows entrepreneurs to enter an unforgiving marketplace with most of the hard work seemingly done. Franchisees do not have to spend valuable time and precious resources generating interest in their new ventures as millions of dollars will likely have been spent by the franchisor to let the public know exactly what to expect when they walk through the door.

Cost is the biggest obstacle for those interested in a franchise. A major fast food franchise fee can run into six figures, and most franchise agreements require the payment of regular advertising and royalty fees. However, franchisees may find that banks are more willing to lend to them, and franchisors may discover that dozens of franchise locations can be opened for the price of a single company owned store.

Businesses may also be attracted to franchising as a means of expansion because the individuals running new locations will have invested their own money and be committed to the venture’s success. Franchisees will also usually work harder than managers and are generally a better source of ideas an innovations. Franchising may also allow companies to grow more quickly and test new markets or products more effectively and with less risk.

While franchises may seem attractive to growing companies and those thinking of starting a new business, this kind of commercial arrangement is not without risks or issues. Brand names and identities are extremely valuable to modern businesses, and experienced business law attorneys may scrutinize franchise agreements to ensure that intellectual property is adequately protected. An attorney could also provide advice to those thinking of opening a franchise regarding the terms of the franchise agreement and the restrictions that it places on franchisees.

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With snow, wind, and freezing temperatures, winter can be especially hard on houses and apartments. Before the chilly weather hits, it’s time to prepare your rental properties for the…