When Franchises Merge: What You Need To Know

Entrepreneur.com:

Let’s say you buy a retail or service franchise in your community. A competing franchise operates in town but does not pose a significant threat to your business.

A few years later, you receive notice that your franchise and the competing franchise have merged, or that one franchise has acquired the other, so that you and your competitor are now operating “under the same roof.” Your competitor is now using your trademarks, receiving local and national advertising support from your franchise’s marketing fund (perhaps with dollars you contributed to the fund), and receiving corporate support from your franchise within the same territory that formerly was yours exclusively. Is there anything you can do about it? See it here.

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