When people in North Carolina are looking to start their own business, one option that many consider is purchasing a franchise. By opening or taking ownership a franchise store or restaurant, owners get a business with a well-known name and a fairly set business model.
In a local example, an entrepreneur is opening up a BungoBox franchise in Raleigh in January. BungoBox is a rental store that specializes in plastic moving containers. Business and personal customers can rent boxes that are 2.5 cubic feet or four cubic feet in size for a weekly rate of $1.75. The business also delivers the boxes to the customer’s location and picks them up once the customer has finished transporting his or her things.
It appears that the BungoBox’s business model is one of the things that interested the owner of this new location to investing in one of its franchises. Many franchise opportunities can lead to success, but as with any new business there are risks with operating a franchise. One question that may be worth asking is, who can be found responsible if an employee or customer is injured on the premises? What about other legal liability scenarios?
While franchisors generally are interested in helping franchise owners be successful, their primary priority is their own profit and legal protection. For that reason, those considering purchasing a retail franchise should consider consulting an attorney who is experienced in business formation matters. That way, you will be able to have the franchise agreement examined and possible legal issues evaluated.
Source: Raleigh News Observer, “New Triangle store aims to replace the cardboard moving box,” Amy Rue, Andrea Weigl and David Bracken, Dec. 21, 2012
- Our law firm advises people interested in starting a business. For more information, please visit our Fayetteville business law page.