Exam 7: The Purchase Alternative: How Do I Buy or Buy Into an Existing Business

An arrangement where a franchisee has the right to sell franchises to others within a particular territory is called a franchise.

Outline a typical process of buying a franchise from the first contact with the franchisor to the final signing of the contract. Note how the process favours the franchisor.

Franchisors such as automobile manufacturers can dictate the prices charged by their franchisees.

Buying an existing franchise is legally simpler than buying a new one.

Most Multi-level Marketers make well-above-average incomes.

Dealership franchising tends to give the franchisee more freedom than business format franchising.

On average, buying a franchise:

In three or four sentences discuss your personality and skills explaining why you would (or would not) make a good franchisee.

Explain the major provisions of existing or pending franchise legislation. Explain the growing trend for disclosure requirements. .