Is it Still Possible to Own a Franchise?

The American dream is still a fantasy for many and overrated for others. Different levels of success have been achieved by different groups by using different strategies. Asian Indians have navigated their path of success rising in the boardrooms of different industries and through strong entrepreneurial paths. Today, they own 20,000 hotels in the US and out of this 8530 are independently owned, while 11,626 are franchised. Franchised opportunities are a very popular way used to attain the American dream in this community because of the security which it provides.

 

So the question of is it possible has a clear answer with a resounding yes. The franchising relationship between the parent company and the purchaser of the franchise is the payment of a designated amount for licensing rights to use the brand. Franchising is governed by its own law because of the complexities involved with having many businesses with different owners operating under the brand name, policies and rules. The law of franchise serves both to protect investors, the parent company and the general public. A franchise business is so appealing to many because the model used is a proven and success inevitable. Can you think of how many failing Burger Kings and McDonalds you know? The answer is probably none or quite a small amount because having a franchise is duplicating the business model and strategy of a successful business.

 

Even though having a franchise sounds easy, the process to get there is often very complicated. An attorney that specializes in this area of the law is a necessity because of the huge commitment it entails both financially and emotionally. An attorney who specializes in this area can explain the terms and jargon used with the contract and all consequences of failure of the franchise such as lawsuits or bankruptcies. On the other hand someone who does not specialize in this area may not be able to explain the terms in a clear and concise manner like that of an experienced franchised attorney. Additionally, if a purchaser is terminated or renewing a franchise agreement, an attorney needs to negotiate on their behalf because sometimes terminating a franchise can cause hardship. Becoming the owner of a franchise can be very rewarding but no one should enter into the business with their eyes closed.

 

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