Q: What is the single most important factor that franchisees should look for in a franchisor
before buying a franchise and why?
During this period, the franchisee will go through an extensive training program that should build a strong, close relationship between the franchisor
and the franchisee.
The franchise is created by the franchisor
, for its benefit.
The Texas Labor Code has been amended to provide that a franchisor
is not considered an employer for claims related to employment discrimination, wage payment, the Texas Minimum Wage Act, and the Texas Workers' Compensation Act, among other laws.
The first and the toughest challenge that every franchisee-to-be must be ready to accept is the ability to fulfill piles of requirements 'ordered' by the franchisor
, counting from the required capital, location, design, building size, staff quantity and skills, and many more.
Franchising means using a tried and tested formula to benefit from the experience and support of the franchisor
(the company offering the franchise).
A has an unhappy franchisee who is now writing nasty things about the company on his individual website.
In light of the proliferation since 1978 of franchises across the country offering a vast array of goods and services, and recognizing technological changes that simplify the transmission of information but that can also enable an unscrupulous franchisor
to exploit inexperienced prospective franchisees, the FTC recently revised The Rule for the first time since 1978.
Every successful franchisor
understands the importance of protecting and promoting the value of its core assets.
Before you get started, make sure that you go through the franchisor
's Uniform Franchise Offering Circular, a legal document that provides the information needed to evaluate the franchisor
Misunderstandings can sour the relationship for both franchisor
The issue of franchisor
liability centers on two legal considerations: