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ABA Family Legal Guide

Forming and Operating a Small Business

Franchising and Buying a Business

Buying a Franchise

What are the advantages of running a franchise?

There are many advantages to a franchise:

  • You can reap the benefits of the franchisor's knowledge and experience. If you're a rookie in the business, you'll especially need the franchisor's help with training and consultation.
  • Because the franchisor is promoting its business, usually vigorously, your business will often receive a boost from the franchisor's advertising.
  • As a franchisee, you do not need years to establish a reputation for quality goods or services, because the franchisor has provided you with a proven, recognized product.
  • Because some franchisors offer the products, supplies, services, and equipment used in your business for sale at a reduced rate, your operating costs could be reduced.
  • Both federal and state laws regulate the offer of franchises, which means that you will have some level of protection in dealing with the franchisor.
  • American Bar Association Family Legal Guide
    Copyright © 2004 American Bar Association
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