Franchise: The Basics of Expanding Your Empire.
In this article and podcast, find out what is the legal definition of a “franchise” and why you might want to stop using that word when offering sales territories to outside sales agents. I also discuss what are the risks of buying into a franchise system, the legal stuff. Next, I discuss how difficult is it to start a “franchise” system for expanding your current business. Finally, I talk about what are some better alternatives to franchising your small business, such as bringing in new investors or business partners to open up new locations, or getting a traditional bank loan and just plain old expanding.
“Franchise” in the legal sense is a complicated business plan for selling a sales system and product to a third party for making money. If you sell a “franchise” of your business to what amounts to an outside sales person, without following the detailed franchise offering regulations, your business may be at risk of paying a high judgment to an aggrieved “franchisee.” Even more fun, each state may or may not (!) have its own relevant statute, or a general anti-fraud statute. Best to consult an experienced lawyer like me.
Listen to My Podcasts
Listen up to Franchise: The Basics of Expanding Your Empire:
Thanks to Matt Mittan and BizRadio AM 1350 in Asheville for letting me present this series.
Also be sure to check out the Asheville Trusted Advisors Council’s special 45 minute podcast on risk management strategies for your business. Hear how a business lawyer (me), a CPA (Samantha Winogrond) and a commercial insurance agent (Lee Goldberg) work together to protect your business assets.
Contact me if you have any questions on any business transaction. In western North Carolina, Asheville, Waynesville, Hendersonville at (312) 671-6453.
Email me at: palermo@palermolaw.com.
Be sure to check out my other blog posts HERE. Be sure to listen to my podcasts with Matt Mittan at BizRadio.US
