Franchising is a flexible, tried and true method of distributing products and services, and offers business owners an alternative avenue upon which to expand their already successful businesses. While most people have a general sense of the structure of the franchise model, particularly because of their first-hand experience dining at a fast food restaurant, few realize the breadth of businesses that successfully employ the model, despite their interaction with these businesses on a daily basis. Some businesses that are commonly franchised include accounting businesses, insurance and tax preparation businesses, frozen yogurt businesses, children’s clothing store businesses, flower shop chains, gasoline stations and weight loss clinics. Some less common, yet innovative examples include custom closet design businesses, 1-800 plumbing related businesses, pool cleaning businesses, pet supply and pet grooming businesses, beer and wine distributorships, golf and tennis training programs, health care clinics and senior care facilities, art stores, pest control businesses and janitorial businesses. The possibilities are endless!
Business lawyers must keep in mind, however, that franchising is not right for all businesses, nor is it right for all of their business-owner clients. Franchises are highly regulated, and starting a franchise requires the investment of a lot of heart and soul, as well as a lot of time and money.
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