Franchise operators required to disclose more
“Owners Wanted” a sign visible off the 515 freeway exclaims, aiming to recruit local franchisees into the booming market. Opportunities for success abound, but even the most promising venture can turn into a messy divorce if the parties don’t plan ahead, small-business advisers say.
Franchisees and franchise operators are most successful when they work toward the same goal, but that’s not always the case, said Susan Kezios, the president of the American Franchisee Association. The franchisor and franchisee may end up at cross-purposes, she said. Often, the franchise corporation tries to increase profits by opening new stores as quickly as possible, which puts the squeeze on the franchisee.
“Someone with a lot of stores can withstand a single-store challenge, but someone with just one or two stores can’t,” she said. Read more:
Technorati Tags: VALERIE MILLER, Las Vegas Business Press, Susan Kezios, American Franchisee Association, Federal Trade Commission, Brian Schnell, U.S. Small Business Administration, John Scott Nevada’s Center for Entrepreneurship and Technology NCET
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