Buying a Franchise: Have you Thought About Future Expansion Rights | Franchise Law Blog

Buying a Franchise: Have you Thought About Future Expansion Rights

For those prospective franchisees who are not only looking to buy a franchise but rather‚ over time‚ to buy and open multiple franchise locations‚ now is the time to carefully consider and plan out the expansion rights that you will need.  Far too often prospective franchisees sign a single unit franchise agreement and then‚ later‚ consider additional expansion rights. This creates a problem if‚ at this later date‚ the franchisor is unwilling to permit your expansion.

Here is some basic but "real world" thoughts that you should consider and discuss with your franchise lawyer:

Again‚ this post is for those who are planning and seriously thinking about multi-unit franchise expansion.  If this type of expansion is in your business plan‚ it must be addressed prior to signing any franchising agreement.  Otherwise you will be giving up too  much leverage and‚ worse‚ you may be subjecting yourself to unnecessary risk.

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Date: 01/02/2013 | Category: Buy a Franchise

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