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What to Look For in a New Franchise
Want to buy a franchise opportunity? Great idea! Here is a high-level overview on what to look for.

Other franchisor Investigate Related Articles

Master Franchisee vs. Franchisee?
Q: What is a Master Franchise or Area Representative? A: The BEST kept secret in business today…. Imagine sharing in the royalty income generated by all of the Subway Sandwiches’ or Domino’s Pizza’s operating within your city. A Master Franchisor shares in the income generated from the units operating within his/her territory. A Master Franchisor (also referred to as a sub-franchisor) is someone in the unique position of owning the rights to sell business franchises in a given area. This territory can be a major metropolitan area, an entire city or in some cases the whole State. The Master franchisor rarely works in the day-to-day operations of the unit; rather your job is primarily a business consultant to the franchisees.

Franchising Your Business - the Key Questions to Consider
Franchising Your Business: Key Questions to Consider Why Does Franchising Make Sense? What Does It Take to Succeed as a Franchise? What are the Procedures to Franchise a Business? Becoming a franchisor can be the fastest, most efficient, and, in most cases, the most cost-effective way to expand a business. Many successful business owners investigate franchising a number of reasons.
Ending the Franchise Relationship
Sooner or later, every franchisor is faced with the difficult task of ending, or terminating, a franchise. How should the franchisor proceed? What rights does the franchisor have? What rights does the franchisee have? This article is a primer on what the franchisor needs to know to avoid problems. peter macrae dillon Siskinds franchise franchisor franchising lawyer attorney Toronto Ontario Canada www.franchiselaw.ca
Franchisee/Franchisor Relationship Requires Mutual Trust, Respect
Trust is the foundation of any good franchisor/franchisee relationship. The franchisee is entrusting his livelihood to the franchisor. The franchisor, in turn, is trusting the franchisee to protect the reputation of the franchise brand.

Qualities to Look for in a Franchisor
The franchisor is the person who helps you to succeed as a franchisee. So, look for leadership qualities, experience and integrity while searching for a franchisor.
What You Should Know About Your Franchisor Before Signing On
You are required to choose the right franchisor, if you want to succeed as a franchisee. For that, check out the brand-name of the franchisor as well as the litigation history of the franchise.
Is Your Franchise a 20-Year
The typical franchise agreement is usually for an initial term of 5 to 10 years with a right to renew for an additional term. This means that at some point in time the franchise relationship may end if the franchisee does not exercise a right to renew or where the franchisee has no additional right to renew and the franchisor refuses to renew. In representing prospective franchisees, I have had numerous occasions to ask the franchisor: “What happens after 20 years when the renewal term ends?” Surprised at the question, the candid response by the franchisor was “I don’t know, we haven’t been operating that long.” My reply was that according to the literal terms of the franchise agreement, there is no legal obligation for the franchisor to renew the franchise agreement again even if the franchisee wants to.
Special Issues for a Subfranchisor
If you want the right to sell franchises on behalf of a franchisor and, perhaps, also operate your own franchises, you may want to become a subfranchisor. A subfranchisor is sometimes called a "master franchisee," particularly in international deals. A subfranchisor steps into the shoes of the franchisor and acts as the franchisor in a given area (for example, state or county). A subfranchisor sells its own franchises and directly enters into a franchise agreement with a franchisee. The franchisor is not a party to the franchise agreement. A subfranchisor is subject to the FTC Franchise Rule and state franchise registration and disclosure laws to the same extent as a franchisor. Therefore, a subfranchisor is obligated to have its own Franchise Disclosure Document.

Special Issues for an Area Representative
An area representative is best described as a "super" franchise broker and servicing agent for the franchisor. You will be disclosed in ITEMS 2, 3 and 4 of the franchisor's Franchise Disclosure Document with your 5-year biography and litigation and bankruptcy history if you will have management responsibility relating to the sale or operation of franchises. An area representative differs from a subfranchisor in that the area representative uses the franchisor's Franchise Disclosure Document and the franchise agreement is signed directly between the franchisor and the franchisee. The area representative is not a party to the franchise agreement. Under the area representative agreement between the franchisor and the area representative, the franchisor delegates to the area representative certain of the servicing and support obligations
Can a Choice of Forum Clause Force a Franchisee to Litigate In the Franchisor’s Home State?
A franchisee who has a grievance against his franchisor is not likely to want to pursue litigation in a distant forum, and thus may turn to a state court in his home state. The franchisor typically removes the case to federal court, 1 and then, invoking the forum selection clause in the typical franchise agreement, seeks to transfer the case to the federal court in the franchisor’s home state.
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