Assuming that the prospective franchisee accepts the greater risk of purchasing a franchise in  a newer system, in order to gain the advantages, then what can be done to make the investment a little safer?  While it is an accepted fact of life that franchise agreements of mature franchisors are non-negotiable, this is not necessarily the case with the new franchisors.  In fact, there are important changes that should be made to the franchise agreement, for the very purpose of reducing the risks.  New franchisors, anxious to start growing the system and wise enough to know that quality franchisees are necessary all the time, but especially at the beginning, will be amenable to changes to the franchise documentation that will not be tolerated later in the franchise growth cycle. Full Article With Comments...

Tags Advantage Buying a Franchise Franchise Franchisor Strengths Successful Franchise Systems Weakness

Authors Edward (Ned) Levitt

What are the Differences in Buying a Franchise in a New System Versus an Established One? (Part One)