Franchise
Franchising is a popular business endeavor for entrepreneurs. According to the International Franchise Association (IFA), in 2000 franchisors and franchisees accounted for one trillion in annual United States retail sales. In addition franchising business accounted for forty-percent of all United States retail sales. Not all franchises, however, do well. Many people want to become the next Bill Gates, but many laypersons do not recognize that a "franchise is a system of business operations that, more often than not, will permit a person who operates the franchise properly to succeed in achieving a reasonable profit." Therefore, potential franchisees should consult an attorney on all matters involving the franchise. And, possibly hire an accountant. In addition, potential franchisees should thoroughly investigate their investment. Taking these necessary steps is the only way to make good business decisions and also to limit litigation. This article examines the need of franchisees to seek the advice of an attorney. This article will first explain the role of an attorney in the complex process of owning a franc
The food industry accounts for most of the franchising business with 25% of the sales. Restaurants that sale cheaper food such as Wendy's and Subway are doing far better than more expensive restaurants. According to Don Debolt, president of the IRA, [t]here's a lot of trading down going on and people are price sensitive. That doesn't mean a disaster [for high-end-franchise], but it may mean that an upper-end restaurant may not be having double-digit sales increases. It's reflective of what's going on in our economy right now." He also adds that upper-end retail sales and services that provide are oftentimes flat or off by 5% to 6%. If the franchsior has made promises to the potential franchise without the required disclosure documents then the client should be aware. Although the franchise may be a good opportunity, the client should be advised not to get involved in the franchise because the franchisor has not complied with governmental requirements. II. EXPLAIN YOUR ROLE AS THE ATTORNEY franchisor must also comply with those provisions of the state law that impose
Some common words found in the essay are:
Franchise Rule, FTC Rule, UFOC Benefits, FTC Rule's, Advantages Disadvantages, Don Debolt, Potential Franchisee, ATTORNEY Duties, Michael Garlick, UFOC UFOC, ftc rule, disclosure document, franchise business, disclosure statement, franchise law, franchise relationship, business plan, disclosure documents, assist client, method operation, meets definitional elements, particular business endeavor, ftc rule registration, definitional elements regulated, franchise agreement disclosure,
Approximate Word count = 4011
Approximate Pages = 16 (250 words per page double spaced)
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