Is Buying A Franchise Right For You?

Choosing whether you want to open your own business or operate a franchise can be a difficult decision. Both decisions carry certain risks and the potential for certain rewards. The following is a basic guide to help determine whether buying a franchise is right for you.

Franchise Or Your Own Business?

It is important to consider whether buying a franchise is the best method to start a business. A franchise gives you the right to use the franchisor's name and methods for a certain, defined period of time, such as 10 or 20 years. However, your rights will end when that period of time is up, leaving you without a business to sell or pass on to your heirs. In addition, most franchise agreements contain a noncompete provision that will prohibit you from operating a similar type of business under a different name for a certain number of years.

Buying an existing business or opening your own business will avoid some of the previously mentioned issues. However, buying or opening your own business means that you do not get to use a well-known brand name, and you do not get the training or support of a franchisor. On the other hand, you will not have to pay a franchise fee or royalties, and you will own the business outright.

Buying a franchise often requires less capital and less risk than buying or opening your own business. Speaking with an attorney who is experienced in franchise law matters can help provide you with the clarity you need to make the decision that is best for you.

Contact A Lawyer To Learn More

David T. Azrin, Attorney at Law, has decades of experience practicing franchise law. He can help you explore your options and determine whether a franchise might be the right choice for your situation. From his office in New York, he represents clients across the U.S. and around the world. Call 646-698-8164 or complete the online contact form to schedule a consultation.