For a bad case of entrepreneurial angst, go online to the Blue Mau Mau blog at bluemaumau.org. The negative entries expose many blemishes of the franchising world. It makes you wonder if owning a franchise is riskier than advertised.
One day last week, the first three posts on the blog were about the ongoing lawsuits against Quiznos by its franchisees, the collapse of Kleenmaid and the trial by UPS Store owners against their franchisor.
Notably the articles and venting by franchisees are one-sided. But it illustrates what can happen if you pick the wrong franchise, fail to investigate it thoroughly and do not understand the potential consequences of signing the legal documents.
At a recent symposium, Kenneth Chapman Jr., a Sarasota-based franchise and business attorney with Chapman, Chapman & Chapman, addressed the legal issues of buying a franchise.
Full article.