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Small Business Franchise Lawyers

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What Is a Small Business Franchise?

A small business franchise is where a small business owner opens up a branch or another department of an existing company. Here, the business owner is allowed to use the existing company’s:

  • Logos and trademarks
  • Marketing techniques and strategies
  • Properties
  • Production methods

This may be beneficial for persons who’d like to operate their own business, but don’t want to do so from scratch. Franchises operate in a similar manner to a small business partnership.

What Are Some Advantages of Small Business Franchises?

Some advantages of small business franchising may include:

  • Less overhead expenses
  • Brand recognition- most franchises involve well-established product names
  • Easier than starting a business completely from the ground up
  • May involve more favorable property locations
  • Customer and client bases may be in existence already
  • Learning curve is easier, as the owner usually follows set programs and guidelines

What Are Some Drawbacks of Franchising?

Some drawbacks may include:

  • Less room for creativity and implementing personal plans/strategies
  • Unable to share company ideas and trade secrets
  • Sometimes limited room for upward growth and mobility
  • Limited to that particular brand or company

In addition, franchise liability laws can sometimes be tricky. Depending on the violation or legal issue involved, the franchise owner can still be held liable for certain claims. In other instances, the overall (national) management may be held liable. This all depends on the fact involved in the legal dispute.

Do I Need a Lawyer for Help With Small Business Franchise Issues?

Small business franchises can offer various advantages to future small business owners. You may wish to hire a lawyer if you need help starting a business or if you need assistance with documents. Your attorney can advise you during the filing process. Also, if you need to file a legal claim for a dispute, your attorney can represent you on those issues as well.

Photo of page author Jose Rivera

, LegalMatch Legal Writer

Last Modified: 05-05-2014 02:46 PM PDT

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