I hear two words from prospective franchisees all the time. In fact, almost every time someone visits with me regarding a franchise opportunity. But a blog post on the Franchise King’s Blog says these two words don’t exist in franchising

If you are a prospective franchisee read the post from the Franchise King and take it to heart. There is no such thing as "Turn-Key". Franchise operations do not magically appear and then you walk through the door to a pile of cash thrown at your feet. It’s hard work and it depends all on you.

I can tell you from experience that if a dispute or litigation occurs, the franchisor will probably deny they know what "turn-key" means and the franchise agreement will contain disclaimers that make the franchisor’s marketing materials immaterial. And although the franchise industry has done a good job of marketing its method of business, the facts are that franchise operations fail at essentially the same rate as independent business operations.   

I am not anti-franchising. Franchising definitely has its place. But I’d make sure I was with a franchisor that possesses superior name recognition in its marketplace, quality products and/or services and a proven system. A proven system that won’t be "turn-key".

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Rush Nigut is a shareholder with the Brick Gentry Law Firm in West Des Moines, Iowa. His practice includes both transactional and litigation matters including franchising and business law. Rush started his legal blog, Rush on Business, in 2006. He has been quoted…

Rush Nigut is a shareholder with the Brick Gentry Law Firm in West Des Moines, Iowa. His practice includes both transactional and litigation matters including franchising and business law. Rush started his legal blog, Rush on Business, in 2006. He has been quoted or referenced by hundreds of other blogs, websites, and publications. He also is the editor of the Brick Gentry Trial Team blog and can help you identify the most qualified lawyer at Brick Gentry to handle your case. Our lawyers have a breadth of trial experience in personal injury, employment discrimination, business litigation, IP law, and class action cases.