In BUYING A FRANCHISE VERSUS STARTING AN INDEPENDENT BUSINESS, attorney and franchise disputes expert witness Kevin B. Murphy writes:
A CHANCE TO GET RICH, BUT ALSO A CHANGE TO GET STUNG Just as franchising represents a chance to get rich, it’s also a chance to get stung. Everyone knows the big blue-chip names like McDonalds, KFC, Radio Shack, etc. But they’re the exception and not the rule. Many lawyers owner wannabes sign on with far smaller, lesser-known or unknown names that may not have a clue about helping operators make money.
Regrettably too many over-eager, first-time buyers leap into buying a franchise without using a franchise attorney who understands the in’s and out’s of relationships, the viability of the industry or company under consideration, and the long-term legal consequences of the contract they are signing.