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Most Recent Questions in Franchises

Which business entity is best if I'm starting a business that could potentially become a franchise?

Either one should be fine. The choice between these two types of entities is really more about taxes than about any other factor. An LLC is taxed like an S corporation in that any taxable... (more)

How can I find an experienced franchise attorney in my area?

It's great that you understand enough to know you need an experienced attorney that specializes in franchising. This will save you time, money and grief because like so many other areas of the law,... (more)

How can I determine if owning a franchise will fit my business goals?

You've asked two great questions. The key to the first question is that you've actually taken the time to set goals that you want your business to accomplish. This is fantastic because it is going... (more)

What's the best way to set up a franchise agreement for my business?

Sorry to say but you're definitely going to need a lawyer for this one--in fact, an experienced franchise attorney. There are two reasons for this. The first is that a franchise contract is one... (more)

What's the best way to finance a franchise through investors?

The best way is to solicit potential investors who already know you and have reason to be confident in your abilities. The financing market is very difficult and has been for the past couple of... (more)

How do I know if my business is right to be franchised?

There are three steps involved in coming up with the right answer to this very important question. Each is important and you need to have positive answers at each step in order for your business to... (more)

How do you prepare a franchise agreement for an LLC?

Preparing a proper franchise agreement is a very important job because you're going to have to live with any mistakes for many years. The bottom line is that you need to seek the advice and... (more)

What should I look for during my franchise search?

Resales can be great but never forget the adage, "Let the buyer beware!" As part of your due diligence, one of the most important bits of information you'll want to make sure you know... (more)

What industries are the hottest for new franchises during the recession?

You are smart to focus on which franchises are doing the best in these tough times. Sometimes they aren't companies that are growing rapidly but they are great opportunities in recessions, so that... (more)

What should I consider when deciding whether to open my own business or a franchise?

There's no right or wrong answer to your question without more information being available. Both independent business opportunities and franchises can be great, or they can be bad--it all depends... (more)

Should I form an LLC before I sign the franchise agreement?

First things first--your question assumes that it is a good idea for you to set up a LLC. Unless you have already gotten advice on the type of entity best suited for your needs, I would broaden... (more)

What questions should I ask if I'm buying an existing franchise?

You're in luck! It is much easier to get a good answer to your question in the case of buying an existing franchise because it already has an operating history you can review. You can... (more)

What is the difference between licensing and franchising?

A franchise is a license, though you usually don't find someone so focused on language minutia that they make a big deal out of the distinction in the sense of business opportunities. The term... (more)

If a franchisor declares bankruptcy, what happens to the franchisees?

This is a great question but the answer is not necessarily direct or clear. There are at least two big issues involved in a bankruptcy that you want to stay far away from, if at all possible.... (more)

What are my rights if I purchased a franchise that didn't have a license in my state?

It sounds like you have multiple challenges to deal with. First is the licensing issue--there are 14 states that require franchise companies to register with the state prior to selling franchises... (more)

How can I force a franchisor to honor the franchise agreement or return the fees I've paid?

Even good litigation attorneys will tell you that you want to explore every possible option for resolving a conflict before you lawyer-up and go to court. It does sound like you've got a point... (more)

How can I determine a true projection of earnings for a franchise?

Sad but true--this is a frustration that many people experience when investigating in a franchise opportunity. The FTC, which regulates the sales process in franchising, allows a company to... (more)

Does buying an existing franchise qualify for an SBA loan?

Yes--buying an existing franchise business is a transaction that falls within the acceptable parameters of SBA loans, but that's not saying you will be able to get one. SBA loans can cover... (more)

What's the best way to raise the last bit of capital needed to launch my business?

Traditional investors, angel investors or lenders will be your best avenues to search for interested parties. Most investors will want to see a business plan and know how much you have invested... (more)

How can I grow my business during the recession?

There are quite a few strategies to grow a small business during a recession--both online and offline. Blogging: Most blogging software is free. It doesn't take long to get up and running. And... (more)
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