skip to content
blog home Buy a Franchise Share A Franchise? What Franchisees Should Know Before Sharing a Franchise with a Partner

Sharing a franchise may sound like a good idea if you are interested in buying a franchise and do not have enough funds or feel as if you do not possess the ability to manage a franchise on your own but there are some important issues to consider prior to sharing a franchise with another person‚ especially a person you do not know.  

A recent article by The Street reviews a fairly new website that is now available for individuals interested in buying a franchise. The website is shareafranchise.com and is a “dating site for entrepreneurs”.  Individuals interested in purchasing a franchise but do not want to do so alone create a profile on the site and then try to match up with other individuals interested in purchasing the same type of franchise and in the same location. The two individuals can then evaluate if they want to buy a franchise together and become co-owners of the franchise location.  The site also has the ability for the franchisor of the particular franchise to be a mediatory on the site between the two potential franchisees.

Considering Buying a Franchise? We recommend reading:
The Entrepreneurs Guide to Purchasing a Business or Franchise

Concepts such as shareafranchise.com are unique and useful in finding someone to share the financial burden of purchasing a franchise but it does place the individuals purchasing the franchise together in a potentially dangerous situation. You are involving yourself in sharing the experience of purchasing a franchise with someone you do not know. While you may being completely honest on your profile and may be a career-driven person who is devoted to working hard to build up a franchise location you can never be 100% sure that the person you are partnering to buy the franchise with has the same intentions or the same drive as you do. It is also important to remember that even after you speak with and get to know the person you are considering partnering with to buy a franchise it does not mean that things after the franchise purchase will be smooth. There is always a high potential for partnership disputes between the two franchisees which can become costly when it comes to the finances of the franchise and the way the franchise operates.

Buying a franchise with another person is something that should be considered only with someone you can trust to fulfill their obligations financially and as an entrepreneur.  Prior to buying a franchise with a partner it is important to discuss with your franchise lawyer how to protect yourself before buying the franchise should a partnership dispute should arise.

Contact us at 1-800-976-4904 or by clicking here to learn more about our FDD review services.

Related Articles:

By Charles Internicola May 23, 2013

Franchising Guides

The Ultimate Guide to Franchising Your Business

New to franchising? Do you want to learn more about franchising your business, where to start, the steps, and how to know if you are doing it right?

Learn More

Is Your Business Franchisable and Should You Franchise?

Franchising may be the next big step for your business and represents an opportunity to grow your brand. So, how do you know if franchising is right for you? How do you know if your business is franchisable and, if it is, whether or not you should franchise your business? To answer these questions you must evaluate whether or not your business is franchisable and, if it is, whether or not your individual goals and your business goals align with franchising and establishing a franchise organization responsible for on-boarding, training, and supporting franchisees.

Learn More

Licensing Vs. Franchising

When considering expanding a business both franchising and licensing are possible options. Each option however comes with different rules and regulations. Prior to moving forward with franchising a business or licensing a business it is important to understand the differences and how each may have an affect on you.

Franchise Lawyer Charles N. Internicola wrote “Licensing versus Franchising” for the very purpose of allowing successful business owners to understand the difference between licensing a business and franchising a business.

Learn More

Guide to Selecting a Franchise Lawyer

If you have questions about franchise lawyers, what they do, how they can help, the cost, and how to select the right franchise lawyer for you, then this guide will help.

Franchise lawyers advise and represent individuals and businesses on legal issues that involve franchising a business, preparing an FDD, filing and renewing FDD registrations, buying a franchise, and litigation involving the franchisor and franchisee relationship. The role of a franchise lawyer varies depending on whether he or she represents the franchisor or the franchisee.

Learn More

Item 19 Financial Performance Representations

Check out our guide where we discuss how to plan and properly disclose Financial Performance Representations in your FDD.

Learn More

Franchise Sales Compliance Guide

Are you a franchisor or a part of a franchise sales team? Do you want to learn more about franchise sale compliance and ensure that your sales practices comply with franchise laws and are consistent with best practices? Then this guide is for you.

In this guide you’ll learn the fundamentals of franchise sales compliance including the franchise laws, regulations, and best practices that your team should have in place for every franchise sale.

Learn More
Close Overlay

Let’s Talk

With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.

Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.