Franchises: What to Watch For

This article appeared in yesterday's online version of the Wall Street Journal. Misleadingly titled "Four Danger Signals When Franchising," (it ought to read "When Buying a Franchise"), it re-visits territory that we've explored in this blog over the years. Nevertheless, this is practical information to review with our clients.

It's a brief article, and it highlights three specific issues:

1 - Lots of litigation and closures - Noting that franchisors have an obligation to disclose any current or past litigation in the franchise offering circular;
2 - Too many bad reviews - Recommending that potential buyers interview a variety of current owners of the franchise to get their honest take; and
3 - High-pressure sales tactics - Which ought to speak for itself.

A lot of this is common sense, but I've heard many stories from all of you over the years about clients who bought a franchise first, then asked questions later. That's the wrong order to do things.

Comments

Popular posts from this blog

Beware credit counseling services like Clear Your Debt LLC

New York State County ZIP Codes

Shoppers' State of Mind Affects Customers Experience