Who is more protected – franchisor or franchisee?
Studying the differences in franchise legislation in different countries (I’ll write about it a bit later) I found rather interesting article. It was published by The Toronto Star, Mar. 14, 2006.
I suggest all prospective franchisees to read this story. Certainly, you can say that the legislation in Canada and in the USA differs and in the USA each franchisor is obliged to present a disclosure. But I think that you’ll earn a lot from this sad story anyway.
My conclusion:
1. Everybody thinking about buying a franchise has to ask for advice. And advisor has to be an independent person. Not a franchise salesman and commissioned consultants!!! Otherwise you will get an advice caused by their financial incentives.
2. Invest your time in investigation of the financial and legal aspects of your future business. This will save you more money and health later.