Avoid Buying the Wrong Sandwich Franchise | Franchise Law Blog

Avoid Buying the Wrong Sandwich Franchise

A recent post on Forbes.com by Deborah Sweeney titled "Sandwich Survivor: 5 Reasons Why Sandwich Franchises Sell and Succeed" suggests that sandwich franchises are continuously "expanding" and "succeeding." However should franchisees view a franchise system's rapid "expansion" as a sign of success? The answer depends on your perspective.

From a franchisee's perspective a growing "franchise system" is definitely an important factor. Systems need to grow and expand to support the continuous development of bran recognition and regional and national programs. There are other benefits to an "expanding" franchise. However‚ expansion – if too aggressive or not properly supported – may also lead to diminished returns by franchisees. Especially where a franchisor's "expansion" translates into higher franchisee costs for advertising programs and proprietary products. For franchisees the primary measure for success is not measured in terms of "franchise system expansion" but rather individual franchisee unit "profitability."

For additional information about purchasing a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by Charles N. Internicola‚ Esq. For information on our Franchisee Protection Programs which include an FDD review and other options contact our firm at 1-800-976-4904.

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Date: 06/22/2011 | Category: Buy a Franchise

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