Authors: James Meaney
ISBN-13: 9781572483842, ISBN-10: 1572483849
Format: Paperback
Publisher: Sourcebooks, Incorporated
Date Published: June 2004
Edition: Subsequent
James A. Meaney practices law in the United States Virgin Islands and Ohio and is a member of the American Bar Associations Forum Committee on Franchising. He served as the first Chairperson of the Columbus (Ohio) Bar Associations Franchise and Distribution Law Committee from 1992 to 1994.
Mr. Meaney is a cum laude graduate of the University of Dayton School of Law. He was Section Chief of the Ohio Consumer Frauds and Crimes Division, Ohio Attorney Generals Office from 198
Finding information on selecting and buying a franchise has never been easier. How to Buy a Franchise explains everything you need to know about how to research a franchise company, analyze its financial and sales information and investigate the earnings claims of the franchisor. The opportunities available for someone to start a proven business are countless. How to Buy a Franchise will help anyone turn these opportunities into realities.
Introduction | ix | |
Chapter 1 | Why Buy a Franchise? | 1 |
Defined and Proven Business Format | ||
Specialization | ||
Uniform System | ||
Advertising Network | ||
Name Identification | ||
Training | ||
Franchise Network | ||
Power Buying and Computerization | ||
Chapter 2 | What is a Franchise? | 9 |
A Brief History | ||
Defining a Franchise | ||
Business Opportunity Plans | ||
Chapter 3 | Finding the Right Franchise for You | 15 |
Shop Around | ||
Let the Buyer Beware | ||
Starting Your Search | ||
Patience | ||
Chapter 4 | Disclosure Laws | 25 |
Disclosure Documents | ||
Initial Consideration | ||
Cooling-Off Period | ||
Relationship Laws | ||
State Agencies | ||
Chapter 5 | The Disclosure Statement | 37 |
Receiving Disclosure Documents | ||
Criticism of Registration | ||
Analyzing the Disclosure Documents | ||
Format | ||
Contents | ||
Chapter 6 | Financial Feasibility | 59 |
Cash Flow Projections | ||
Territorial Limitations and Demographic Research | ||
Visit the Franchisor | ||
Chapter 7 | Professional Assistance | 65 |
Finding the Help You Need | ||
Chapter 8 | Franchise Salespeople and Brokers | 71 |
Chapter 9 | The Background of the Franchisor | 75 |
Founding Fathers | ||
Warning Signs | ||
Personal Meetings | ||
Financial Background | ||
Government Agencies | ||
Company-Operated Units | ||
Chapter 10 | Investigating Existing Franchisees | 83 |
List of Franchisees | ||
Financial Earnings | ||
Additional Resources | ||
Chapter 11 | Earnings Claims | 89 |
Prohibited Disclosures | ||
UFOC Guidelines | ||
Violations | ||
Analyzing Earnings Claims | ||
Chapter 12 | Understanding and Negotiating the Franchise Agreement | 93 |
Read the Contract | ||
Franchisee's Duties | ||
Franchisor's Duties | ||
Clarification to Start Negotiation | ||
Hard-to-Change Provisions | ||
Use Your Attorney | ||
Compare the Franchise Agreement to the Offering Circular | ||
Purchase Price Negotiations | ||
Initial Term and Renewal Clauses | ||
Franchise Termination | ||
Transferring or Selling the Franchise | ||
Product and Equipment Purchase Requirements | ||
Operation Manuals--the Hidden Agreement | ||
Franchise Territory | ||
Dispute Resolution, Choice of Law, and Forum Selection | ||
Negotiating | ||
Chapter 13 | Your Relationship with the Franchisor | 119 |
Training Performance | ||
Unsatisfactory Performance | ||
Enhancing Performance | ||
Chapter 14 | Franchisee Input and Franchisee Associations | 123 |
Franchisee Councils | ||
Franchisee Associations | ||
Conclusion | 129 | |
Appendix A | Uniform Franchise Offering Circular (sample) | 131 |
Appendix B | Franchise Agreement (sample) | 175 |
Appendix C | State Filing Requirements | 203 |
Index | 213 | |
About the Author | 219 |