A small business franchise is a type of entity in which the company is selling products or services based on a written agreement with another company that generally has a very well-established brand. For established companies, selling a small business franchise is a great way to expand operations into new locations. This type of arrangement is common in the fast-food industry, but is also done in many other industries including copy shops, salons and real estate services. It is wise to have an attorney review the contracts and assist in the negotiations because most states have specific statutes to cover such arrangements.
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