Legal Question in Business Law in New Jersey

Re: Franchise Territory

You should be VERY cautious about franchises. You really need an attorney. I suggest you find an attorney near you who handles business matters.

Re: Franchise Territory

Traditionally, franchises offer exclusive territories, so beware of those that are non-exclusive. Part of the answer depends upon the costs involved, what you are getting for your money, and how many competitors can be granted the area. Typically, flooding an area only benefits the franchisor, and unless you have something unique to offer, it will probably be a losing proposition. For instance, there are franchises for legal services that are also non-exclusive. So the franchisor floods the market and controls the disposition of contacts. One never knows if they are getting their fair share, so who knows if it is profitable.

Re: Franchise Territory

The exclusivity of a franchise territory depends on the business. Duncan Donuts can be located a mile or two apart without adverse impact. What you are buying in a francise is first a NAME. If you have not heard of the franchisor's name before, then all you are doing is building up their name. Secondly, you are purchasing a unique product or system. An example, once again is Duncan Donuts. If I go to a DD I know what doughnuts, coffee, etc. is available. It is an identifiable product. Finally, the training and business sytems, and ongoing support, can be valuable to the new business owner.

I have more information about businesses on my website http://www.taxesq.com/

You should definitely obtain a good business attorney BEFORE you SIGN anything.

I hope this helps!

Ron Cappuccio