Britton Law, P.A.
Free Consultation For Injury Cases
Due to precautions related to COVID-19, remote consultations via teleconferencing, Facetime or Skype are available. Please contact our office to discuss if this option is appropriate for your situation. Let’s all stay healthy and safe.

Things to consider before becoming a franchisee

Opening a new business in North Carolina as a franchisee can be a lucrative endeavor, but it's important to consider a variety of risk factors before moving forward with an investment. One of the first factors to analyze is whether or not a business opportunity is in an established or relatively new market. Old markets aren't 100 percent safe, and new ones aren't always fads, but how established a particular business is should weigh heavily in calculating the risk.

Another factor to consider is locality and seasonality. Some businesses only generate enough revenue to operate in specific regions or during specific times of the year. Running a surfing supply franchise in Minnesota during the winter isn't likely to be profitable. Franchisees who only want to work half the year may benefit from opening a business that's only busy from April to October. Recession resistance is also important. Whether or not a franchise can hold up during an economic downturn will help determine long-term success.

How the government regulates is a major factor when analyzing franchising risk. The industry most affected by this currently is cannabis. While many states have legalized the medicinal or recreational use of marijuana, the federal government hasn't, making it very difficult to use banking services. Both current and potential future regulations need consideration. New laws could change the way certain markets operate almost overnight.

When buying a franchise, entrepreneurs are advised to consult with an attorney before signing any contracts. Experienced attorneys can look closely at franchise documents to make sure there are a minimal amount of risks or liabilities for their clients.

No Comments

Leave a comment
Comment Information

Send Us An Email. We’ll Listen.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Britton Law, P.A.
2850 Village Drive, Suite 206
Fayetteville, NC 28304

Toll Free: 888-811-9738
Phone: 910-401-3356
Fayetteville Law Office Map

Britton Law, P.A. Office

Call Our Law Firm:

910-401-3356 ~or~ 888-811-9738
Things to consider before becoming a franchisee | Britton Law, P.A.