{"id":5150,"date":"2016-04-04T11:47:57","date_gmt":"2016-04-04T16:47:57","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/consumer-guide-to-buying-a-franchise.html"},"modified":"2026-05-26T14:01:00","modified_gmt":"2026-05-26T19:01:00","slug":"consumer-guide-to-buying-a-franchise","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/consumer-guide-to-buying-a-franchise.html","title":{"rendered":"Consumer Guide To Buying a Franchise"},"content":{"rendered":"\n
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Consumer Guide To Buying a Franchise<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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A franchise is a specific type of business model in which an investor, the franchisee, pays an initial fee and ongoing royalties to an existing company, the franchisor. This model provides a new business owner with brand recognition, proven operations, and ongoing support. However, as part of the franchise relationship, the business owner gives up a degree of control and must adhere to the terms of the franchise contract.<\/p>\n\n <\/div>\n\n\n\n

Many people dream of being an entrepreneur<\/span>. Your dreams of owning a small business<\/span> can come true by\u00a0purchasing a franchise<\/a>. With a franchise <\/span>business<\/span> model<\/span>, you can sell goods and services with instant brand recognition<\/span>. However, simply buying a franchise does not guarantee you will succeed.<\/p>\n

This FindLaw article helps you decide if being a franchise <\/span>business<\/span> owner<\/span> is worth the initial investment and ongoing royalties.<\/p>\n

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Benefits and Responsibilities of Franchise Ownership<\/span><\/h2>\n

To help you evaluate whether owning a franchise is right for you, know the\u00a0legal advantages and disadvantages of owning a franchise<\/a>. It will help you understand your obligations as a franchise owner<\/span>, how to shop for franchise opportunities<\/span>, and how to ask the right questions before you invest.<\/p>\n

An investor in a franchise is the “franchisee.” The franchise company is an existing business called the “franchisor<\/span>.” Investing in a franchise allows that person to operate a business. Before running a franchise, the investor must pay a franchise fee. Fees start at several thousand dollars. It allows the franchisee to receive:<\/p>\n