If you want to protect your investment in a franchise, don’t rely on verbal promises from the franchisor.

Why not? Because verbal promises are worthless if disputes arise. Verbal assurances from a franchisor representative might make you feel secure in the moment, but when challenges occur—like receiving less support than promised or discovering fees you didn’t expect to pay-you’ll find that those words hold no legal weight. Your dreams of owning a successful franchise could quickly turn into a nightmare of unmet expectations and financial losses.

Here’s what else might happen if you make this mistake:

  • You may lose legal grounds to demand what was promised.
  • You could end up paying unexpected costs.
  • Your relationship with the franchisor may sour, leading to a lack of support.
  • Your business might struggle without the resources you were promised.

I have seen many franchise litigation clients make the same mistake. Often franchisees will trust a franchisor’s verbal commitments about marketing support and territory protection. They believed that the franchisor’s word was enough. But when those promises weren’t fulfilled, those franchisees were left scrambling, with no legal recourse to demand what was verbally promised because of disclaimers and waivers in the franchise agreement. Many times their business suffered, their confidence was shaken, and they realized too late how crucial it is to get everything in writing.

Which is why I want to share this with you.

Instead, always ensure that all franchisor promises are included in a written addendum to the franchise agreement.

You should insist on detailed written documentation of every promise before signing the agreement. This way, you have a solid foundation to hold the franchisor accountable. You avoid unexpected expenses, receive the support you need, and ensure a smoother, more successful franchise operation.

  • You have peace of mind knowing everything is clearly outlined.
  • Your business relationship with the franchisor is more transparent.
  • You avoid unpleasant surprises and financial strain.
  • Your franchise is more likely to thrive.

This matters so much to me because I want to see you succeed where others have stumbled. Learning from their mistakes can save you from the same heartache and help you build a franchise that fulfills your aspirations.

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