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April 2012 Archives

Problems with your franchisor--don't use franchisor's email system

If you are having problems with your franchisor-or issues that could become serious, your first reaction may be to send an email to a friend or to an attorney seeking advice. Do not send that email using the franchisor's email system or from a computer that the franchisor has access to.

Buying a franchise similar to your existing business--beware!

Buying a franchise in the same industry you already have a business in can be a very risky decision. Let's say you have a current customer base that generates you $10,000 a month in gross revenue, of which $3,000 drops to the bottom line. You receive a solicitation from a very charming franchise "consultant" offering you a franchise with a "known name", "group buying power", "proven systems" and all the training an support you could dream of. Should you buy?

New Developments--CA Assembly Advances Fair Franchising Bill

Perhaps it is a response to a growing perception that franchise agreements have been growing increasingly lopsided-just a tiny step above the indentured servitude of the middle ages-or perhaps it is pandering to the franchisees who showed up in Sacramento in droves to testify, but the Assembly of the California legislature today took one step toward passing a state fair franchising law. It passed the Assembly Judiciary Committee on a 6-3 party-line vote.

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