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Franchise Disputes: What Every Franchisee Should Know

FranNet

12+ Common Franchise Disputes (And How to Avoid Them) #1 – Franchisor Misrepresentation & FDD Inaccuracies One of the most serious disputes arises when a franchisor provides misleading or incomplete information during the sales process. Post-termination non-compete clauses may also become points of contention.

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The Complete Guide to Franchises

AllBusiness.com

Risks of Franchising Although franchising reduces some of the risks associated with starting from scratch, it doesn't eliminate them. Innovation is often restricted to maintain brand consistency. Reputation Risk: A scandal or failure in one franchise location can affect the entire brand.

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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. Just like any new franchise that is investing their life’s savings into a business, a new franchisor is likely doing the same.