Franchise Risks

One should fully read the franchise disclosure document to identify relative risks in the total transaction. Put in other words, what are the promises which are being made in return for your agreement to pay the initial and ongoing franchise fees, and what are the risks of those promises falling short of your expectations or their being broken? What obligations are you being asked to undertake, and how dependent are you upon achieving a perceived business goal in order to meet those obligations? To be sure, no business is risk-free. However, the franchise purchaser should remember that he or she is agreeing to pay significant sums of money for something. You should endeavor to determine what that “something” is, both as to perceived value and reasonable expectations.

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  • Stephen M. Feidelman, P.A.
    Mailing Address:
    3389 Sheridan St., PMB #244
    Hollywood, Florida 33021

    Broward: 954-927-2889
    Miami-Dade: 305-931-4100