Thursday, October 23, 2014

Can you consider franchisee as owned?

Can you consider franchisee as owned?
Yes - but not completely. One of the advantages (and sometimes disadvantages) of franchising is the fact that "you are not alone". That is, if the franchisor is doing its job, as a franchisee, you are acquiring rights to and, presumably, should be benefiting from an existing system for conducting your franchised business. As a franchisee your will "own" your own store (i.e., you, most likely will have rights to your leased business location and own the furniture and fixtures of your business) but your rights in and to your own store will also be subject to and governed by the terms and conditions of your franchise agreement. That is, your business franchised business must be operated within the terms of your franchise agreement that, typically, will dictate and regulate (a) hours of operation, (b) the products that your may sell or the services that your may offer, (c) the trademarks that will be used to identify your business and other systems and requirements respecting the operation of your business. Like a traditional "non-franchised" business, in most cases, you will possess the right to sell your franchise but, typically, you will require the approval of the franchisor.

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