article thumbnail

Franchise Disputes: What Every Franchisee Should Know

FranNet

This includes inflated earnings, undisclosed past litigation, or verbal promises that differ from the Franchise Disclosure Document (FDD). For more detailed information on Franchise Disclosure Documents, visit the FTC’s Franchise Rule Compliance Guide. #2 Post-termination non-compete clauses may also become points of contention.

article thumbnail

The Complete Guide to Franchises

AllBusiness.com

Innovation is often restricted to maintain brand consistency. Reputation Risk: A scandal or failure in one franchise location can affect the entire brand. You can lose the right to your franchise if you don't comply with the contract, and you won't have a right to renew unless the franchisor gives you that right.

article thumbnail

Buying a Franchise in a New Franchise System

MSA Worldwide

In addition to not growing faster than the system can support, intelligent geographic growth – so that they can provide support and ensure brand consistency economically – is essential. Advantages of Investing in an Emerging Franchisor There are advantages to becoming an early franchisee of an emerging franchisor.