That disclosure may point out frequent kinds of issues within the franchise system. For example, if a franchisor sued franchisees for failing to pay royalties, it could be as a result of franchisees weren’t successful, and weren’t keen or capable of make their royalty payments. Item 1 tells you how lengthy the franchisor has been in enterprise and its doubtless competition. It additionally lets you know if there any legal requirements unique to the franchised business, like a requirement that you get a special license or permit.
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