admin
07-25-2003, 12:55 PM
Franchisee business relationships generate a trillion dollars in revenues each year. This figure, argues to some that such arrangements should be subjected to additional regulation.
“Franchisees and franchise sellers typically don't see eye to eye on whether more laws governing the business are needed. So before you decide to buy a franchise, it pays to learn more about how they're regulated and why”
Franchising began with the Singer Sewing Machine Company and has grown into a large number of business sectors.
“Susan Kezios, president of the 16,000-member American Franchisee Association in Chicago, says that current laws have no impact on the issues that hurt franchisees the most: encroachment (the awarding of a new franchise or the opening of a company store too close to an existing franchise); product sourcing -- franchisers insisting that franchisees buy products only from them or their designated suppliers, often at inflated prices; and equity transfer. "Franchisees aren't allowed to sell the businesses they own," Ms. Kezios says, "because the buyer must be approved by the franchiser and must adhere to the franchiser's latest contract."
To see a check list of items to examine prior to purchasing a franchisee, click below:
http://www.entrepreneur.com/franzone/article/0,5847,310155,00.html
“Franchisees and franchise sellers typically don't see eye to eye on whether more laws governing the business are needed. So before you decide to buy a franchise, it pays to learn more about how they're regulated and why”
Franchising began with the Singer Sewing Machine Company and has grown into a large number of business sectors.
“Susan Kezios, president of the 16,000-member American Franchisee Association in Chicago, says that current laws have no impact on the issues that hurt franchisees the most: encroachment (the awarding of a new franchise or the opening of a company store too close to an existing franchise); product sourcing -- franchisers insisting that franchisees buy products only from them or their designated suppliers, often at inflated prices; and equity transfer. "Franchisees aren't allowed to sell the businesses they own," Ms. Kezios says, "because the buyer must be approved by the franchiser and must adhere to the franchiser's latest contract."
To see a check list of items to examine prior to purchasing a franchisee, click below:
http://www.entrepreneur.com/franzone/article/0,5847,310155,00.html