What are the key risks that franchisees need to be aware of?

When entering into a franchise agreement in Washington, there are several key risks that franchisees need to be aware of. The first risk is related to the Washington Franchise Investment Protection Act, which restricts the sale of franchise opportunities in the state. Franchisors must provide a disclosure document that outlines the rights and obligations of both parties in the agreement. This includes a detailed description of the total investment that the franchisee will need to make, as well as any fees or royalties that will be required. The second risk to be aware of is the possibility of litigation. Franchisees should familiarize themselves with any existing legal disputes related to the franchise, as this could pose a financial risk. Additionally, franchisees should understand the termination rights that are outlined in the contract, as well as any laws that may apply should a dispute arise. Finally, franchisees should also be aware of potential changes in the industry. This could include changes in consumer trends or new competition entering the market. Franchisees should track any changes related to their agreement so they can better protect their business. In summary, entering into a franchise agreement in Washington comes with certain risks. These include the need to abide by the Washington Franchise Investment Protection Act, the possibility of litigation, and potential changes in the market. A franchisee should be aware of these risks before signing any agreement.

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What are the key risks that franchisees need to be aware of?

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