How to avoid franchise partnership disputes?

The purchase and ownership of a franchise requires big decisions to make which generally involves huge costs. Some may choose to invest their own capital to purchase the franchise whereas others choose to invest alongside a friend, family member, spouse or silent investor i.e. A partner.
Although there’s a financial relief as your costs are cut, the addition of a partner leads to tension for various reasons.

How to avoid franchise partnership disputes

Difficulty in Making Business Decisions.

When making business decisions, often partners won’t agree on what they believe to be the best decision for the business. Some opinions may differ slightly whereas other opinions may be total opposite ideas within a franchise. This may be an inflexibility which restricts your ability to implement changes within a business, which may then lead to tension within the business affecting decision making, time and in turn business profits.

Sharing Profit

When owning a franchise with a partner, you must share the profits and fame earnt from the business. This may cause bad feelings by the partners towards each other as one may feel they’ve invested more time, effort and ideas into the business therefore deserve more recognition and profits.

Franchisor Monitoring

When working with a partner, often the partner will inspect your work in regards to the business. This may lead to frustrations at being monitored and micro managed. One may feel as though they’re not being trusted which may cause enmity towards the partner.


In order to reduce the risk of any of these factors occurring which most certainly will damage the business and hurt profits, franchise lawyers specialise in dealing with such situations and provide effective solutions which protect the business from being harmed. They can be of assistance from the very start by reviewing the franchise agreement to make sure the finer details are all beneficial to you before acquiring the franchise.

Once the franchise partnership is set up, should a dispute with a franchisor occur, franchise lawyers alongside their team are available to provide an overview of the strengths and weaknesses of the situation and set out your options moving forward. Through cost effective planning and efficiency, they will strive to protect your interests.

Franchise lawyers provide a safety net to anybody looking to acquire a franchise by providing support from the very beginning, to assisting when difficulties occur, or finally when the franchise is for sale.

How to avoid franchise partnership disputes?
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